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Private Landlords To Own £1Tn Of Property By 2015

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http://www.theguardian.com/money/2014/nov/06/private-landlords-own-1tn-property-2015-renting

Private landlords in Britain are set to own £1tn worth of homes by late spring 2015, it was predicted on Thursday, as rising house prices and growing appetite from investors drives up the value of the booming buy-to-let sector. The private rented sector has expanded rapidly in recent years, as would-be first-time buyers have struggled to get a toehold in the housing ladder.

Official figures show that since 2001, nearly 2 million households have been added to the sector and a report by mortgage lender Kent Reliance forecasts that by 2016 the total will have grown to 5 million, representing just under one in five households.

Buy to let landlords now own properties worth a total of £930.7bn, three-and-a-half times the £262.1bn the sector was worth in 2001, according to the lender’s analysis of figures from the Office for National Statistics and Land Registry.

Rising house prices are behind much of the growth, with the markets in London and the south-east driving up the total value. Kent Reliance said that since 2007, 61% of the increase in the sector’s value had been driven by London, and that over that period landlords in the capital had seen their assets increase by £166bn.

Just think what this will mean to the pension crisis if there's a HPC. Under no circumstances will that be allowed to happen.

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wiki: "Hoarding is a general term for a behavior that leads people or animals to accumulate food or other items during periods of scarcity."

We have got into a situation where part of the population is hoarding a scarce resource required by the rest of the population.

If people/government saw it like that, I think that would change the attitudes on BTL and mass landlords like the Wilsons. Housing is not a general purpose commodity that an individual can do without.

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wiki: "Hoarding is a general term for a behavior that leads people or animals to accumulate food or other items during periods of scarcity."

We have got into a situation where part of the population is hoarding a scarce resource required by the rest of the population.

If people/government saw it like that, I think that would change the attitudes on BTL and mass landlords like the Wilsons. Housing is not a general purpose commodity that an individual can do without.

I don't agree that it is quite as bad as that. Second home owners who leave their properties empty are hoarding homes. However, BTL landlords are not taking homes out of the market. People will still be living in them, but of course only renting rather than buying. The problem of BTL could be resolved by making BTL mortgages much harder to get. Very few of these landlords will actually "own" the properties. There is however an artificial situation caused by government policy that is allowing BTL landlords to borrow money far more easily than owner occupiers.

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