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> paying property tax Exactly, this is point I was trying to make. Policy can have an effect on the market. It is more than just supply and demand like noduerm
by mchaver 5y ago
> paying property tax
Exactly, this is point I was trying to make. Policy can have an effect on the market. It is more than just supply and demand like noduerme was suggesting. An example is London. There is a large number of empty housing owned by non-residents because they can avoid a lot of taxes and its a good place to park money. If there wasn't preferential treatment for non-UK residents then the housing market there would look a bit different.
Also buying up housing assets could be a long term strategy that would benefit the owners in ways short term would not (change of policy 10 years later, increased population because of migration laws, etc.)
- seoaeu 5y agoThe apartment vacancy rate in London is apparently only 3.4% [0] right now! That's not even the 4.5-6% rate that it takes to cause rents to stop growing. I would hardly consider that a large number of empty housing. [0]: https://lfpress.com/news/local-news/london-apartment-vacancy-rate-hits-eight-year-high-of-3-4-per-cent https://lfpress.com/news/local-news/london-apartment-vacancy...
- mchaver 5y agoThat data you provided is for London, Ontario, Canada. I was speaking about London, England, UK. That being said I looked up the official data and calculated around 3% for dwelling vacancy in London for 2020 [0]. Though, if look at individual boroughs one finds there is a high vacancy rate in certain areas [1] (based on the same data from [0]). [0]: https://www.gov.uk/government/collections/dwelling-stock-including-vacants https://www.gov.uk/government/collections/dwelling-stock-inc... [1]: https://www.bigissue.com/news/housing/one-in-three-homes-in-the-londons-financial-district-are-sitting-empty/ https://www.bigissue.com/news/housing/one-in-three-homes-in-...