I read an article today bemoaning the fact that we pay more for rent in the UK than our European neighbours and that Landlords are deliberately taking advantage of a housing crisis to exploit tenants.
Clearly the person who wrote the article, even though they referenced ‘cheap’ mortgages, doesn’t seem to understand the relationship between repayments and rent.
When applying for a buy to let mortgage, proposing to a bank a business case where you deliberately have an income less than your expenditure, may result in being turned down.
Whilst I understand and agree that our market is far from perfect, I think that accusing the majority of Landlords of profiteering is a little harsh.
Landlords do not set the rent for property, the overall market does and the growth of population compared to new housing construction, shows no sign of reducing rents anytime soon.