Monday, January 5, 2015

Makes the rubbish assumption that landlords have ever been able to pass on interest rate rises

Rent controls would spell disaster for thousands of buy-to-let investors

There's no correlation between interest rates and rents -if there was, renters would have seen huge rent cuts over the last few years, and huge rises during the early 90s. The only problem with Civitas' proposal is that increases should be limited to wage growth, not inflation, as wages are ultimately what set rents.

Posted by mombers @ 12:07 PM (2417 views)
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2 thoughts on “Makes the rubbish assumption that landlords have ever been able to pass on interest rate rises

  • bidin'matime says:

    This was featured on Radio 4 (Moneybox?) at the weekend – the guy was talking about lifetime tenancies ‘as the have in Germany’ – whatever it comes to, every little bit of such news helps: if it puts enough investors off the idea of buying property and/or persuades some that now is the time to cash in, then all well and good.

    The fact is that it’s inevitable: as ‘generation rent’ takes over ever more positions of influence, be it in the press, politics or wherever, they will bring more pressure to bear in favour of renters. Economics and politics are all about pendulums…

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  • Agreed mombers, not just because wage rises have been lower than inflation for so long, but also because landlords couldn’t very well complain about that arrangement in the way the idiot who wrote this is.


    The tide is definitely turning.

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