Hamble Campbell's Home Page

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Thursday, November 03, 2005

Buy to let

Lots of people are buying to let, and the government is even encouraging this by allowing these properties to be considered part of a pension plan.

Unfortunately, round here near Reading at least, house prices are too high for people on lower salaries to afford. The very rich, and there are many of them, can afford whatever they fancy. Then they rent out their properties and congratulate themselves on performing a public service. It is true that there will always be a certain number of people who prefer to rent than to buy. But the rent is very high and stops people being able to save for a deposit on a house of their own. The shortage of properties means the prices are kept high by the surfeit of buyers.

My suggestion would be for rental charges to be controlled by government. Rent should not be higher than mortgage repayments. Landlords have the resale value of the property as well as its rental income so rental prices should not be allowed to get too high. That should sort it all out I think.


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