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A major factor in the rise of property prices in the UK is the enormous growth of the buy-to-let market. It's not the sole factor affecting property prices, but
by design-of-homes 11y ago
A major factor in the rise of property prices in the UK is the enormous growth of the buy-to-let market. It's not the sole factor affecting property prices, but a substantial one, particularly in London.
Incredibly, buy-to-let landlords have enjoyed better tax advantages than first-time buyers. Some of those tax advantages have only recently been curtailed by the current government, but it's too little, too late.
I wrote a blog post about the damaging effects of buy-to-let in 2009. That's six years ago, and hardly anything has changed. It's immensely depressing:
http://designofhomes.co.uk/016-damaging-effects-of-buy-to-let.html http://designofhomes.co.uk/016-damaging-effects-of-buy-to-le...
- retube 11y agoActually growth of BTL is not the reason for increasing house prices - although it is a result of the actual cause - low interest rates - which has meant that both buy-to-live and buy-to-let have been able to borrow ever great sums for the same monthly cost as mortgage rates have come down - from 5% or 6% to 1% over the last 5 - 10 years.
- collyw 11y agoI am sure it a combination of factors. Some will say immigration is the cause. Its not the only cause, but it will affect the market. I have to agree that 'emergency' low interest rates are propping the market up since it was ready to crash in 2007. BTL landlords benefit from low interest rates, so again that is a factor.