The flip side of high property prices is that its currently a pretty shit investment for new wannabe landlords. Rental yields on residential property are arou

The flip side of high property prices is that its currently a pretty shit investment for new wannabe landlords. Rental yields on residential property are around 3% in most of the UK, which is roughly where interest rates are. This means landlords are now entirely dependent on leveraged price appreciation to make a decent return. Many landlords have already sold up because the returns no longer justify the hassle or risk (bad tenants, rent arrears, etc). Of course, one advantage to having your wealth in rental properties is rents are usually linked contractually to some measure of inflation.