Housing shortages are often quoted as the reason for the rise in “Buy to Let” properties. I suggest it’s simply greed!
Landlords of these properties see a chance to cash in on people who either can’t or don’t wish to buy their own homes. People on low incomes, often on state benefits.
As far as those landlords are concerned it’s a great little earner, as in many cases the rents are paid by the government through benefits, so their income is guaranteed. The tenants, many from the lower section of society, have little pride in the property, just grateful to have a house and knowing someone else is paying for it!
Win Win for both parties.
But wait; what about the residents of nearby properties, people who’ve saved to buy their own homes. Suddenly they find that a new, transient, type of neighbour is in their midst. In very little time these residents find the value of their homes falling as renters move in. It’s a vicious circle; renters move in, existing residents dislike their new neighbours so move out, more renters move in because sale price of houses has fallen due to new residents and Buy2Let landlords buy up the houses at knock down prices. The downward spiral continues, and all the time the greedy absentee landlords rub their hands together! They don’t care about the neighbourhood as long as the rents are paid.
What do government do about it? Nothing, making out that it’s helping the housing shortage.
The real losers in all this are the hard-working folk who bought their own homes, but who lose out to greedy people. The whole thing stinks!