In the UK, since WW2, ROI for buying a house and renting it out has on average kept pace with the stock market, albeit with far less volatility. This is includi

In the UK, since WW2, ROI for buying a house and renting it out has on average kept pace with the stock market, albeit with far less volatility. This is including the house price growth and income from renting it out exceeding the debt. This shouldn't happen - there should be a premium return for investing in something risky. The reason it has happened is because of policies such as being able to discount mortgage costs from rent before you pay tax on the rent (the government is phasing this out). What has been the result of this? People who can borrow a lot (the rich) have hoovered up houses, reducing home ownership, raising house prices & rents, and making lots of money in a not very productive way. This is bad - a few decades ago average house prices were about 4x average salary, now it is 10+. Incentives to work hard are becoming out of touch. Also, all the money people are investing in housing could have been invested in starting a new company, or something risky but rewarding.