Buy-to-let investors: 'Let us off capital gains tax and we'll sell to first-time buye

[DimPrawn]

God that chart makes me sad

I wish I'd bought more property in 2009 and 2012.

[Andy2]

You're only looking at one side of the equation.

The developer next door to me has said, my property is worth X on the market and I want a 5% return, therefore I will set my rent accordingly and increase it every year based on the nominal house value.

Rents are going up to match house prices.

its the other way around. If nobody could afford high rents they will automatically go down as BTLers can not afford to keep their property empty. it seems people can afford to pay high rent so up they go.

[DimPrawn]

its the other way around. If nobody could afford high rents they will automatically go down as BTLers can not afford to keep their property empty. it seems people can afford to pay high rent so up they go.

Squeeze 'em till the pips squeak.

[Forgotmylogin]

its the other way around. If nobody could afford high rents they will automatically go down as BTLers can not afford to keep their property empty. it seems people can afford to pay high rent so up they go.

No. It's not the other way around.

It's just that rent is relatively price inelastic in terms of demand. People don't have much alternative, so will make sacrifices in other areas of spending so that they can afford somewhere to live. It would be nice if people had the choice of saying "I'm not going to pay that", but where do you suggest they should live instead?

If they can't afford the rent, then how will they afford to buy a place (taking into account needing a deposit)? Instead, they sacrifice not being able to save for a deposit by paying the mortgage payments of the landlord.

[VectraMan]

its the other way around. If nobody could afford high rents they will automatically go down as BTLers can not afford to keep their property empty. it seems people can afford to pay high rent so up they go.

Lots of people can't afford to pay high rents. So the government pays it for them. Take that out of the equation and rents would plummet shortly followed by house prices. Only problem would be what to do with all the homeless people.

The whole thing amounts to a tax that's paid into the pockets of rich, greedy, scum-sucking BTLers.

[DimPrawn]

The whole thing amounts to a tax that's paid into the pockets of rich, greedy, scum-sucking BTLers.

Or Tory voters, as most of them are known.

[d000hg]

Lots of people can't afford to pay high rents. So the government pays it for them.

I thought they'd set fairly reasonable limits on housing benefit, but this page suggests otherwise in the table "How much you can get" (per week) - but then I think it varies from council to council so what those figures refer to I have no idea. e.g. I thought a friend told me her neighbour (single, 3 kids) is able to claim up to ~£400 per month which is actually quite a sensible amount for this area.

[vetran]

Lots of people can't afford to pay high rents. So the government pays it for them. Take that out of the equation and rents would plummet shortly followed by house prices. Only problem would be what to do with all the homeless people.

The whole thing amounts to a tax that's paid into the pockets of rich, greedy, scum-sucking BTLers.

well when the government tried to limit rents they were accused of 'social cleansing'.

[PurpleGorilla]

This crisis point was easy to see in advance, 15 years ago flipping and BTL could have easily been nipped in the bud. But progressive governments have needing the HPI party to fuel the economy. Only way out is lots of pain. Hopefully for the wealthy BTL and multi home owners and not on the renting poor.

[VectraMan]

I thought they'd set fairly reasonable limits on housing benefit, but this page suggests otherwise in the table "How much you can get" (per week) - but then I think it varies from council to council so what those figures refer to I have no idea. e.g. I thought a friend told me her neighbour (single, 3 kids) is able to claim up to ~£400 per month which is actually quite a sensible amount for this area.

When I claimed JSA for 3 weeks a couple of years ago I think I could have had £500pm as a single person for the rent, which is ~80% of what I actually pay for a 2 bed house. But then if they'd said I could have £0pm and I'd had to go and live with my Mum or something, then there would have been one extra house free.

Not wanting to sound like an attack on benefits scroungers, but clearly it's a factor.