ff1d1l
pfm Member
Awesome bile-burp there, ET.Another point of view is that not all BTL landlords are in it to make money, but rather they are forced to do so to prevent wealth destruction. Property transaction costs are horrendously high in the UK. Is it reasonable to expect people to burn 10% of their wealth every time they move city or country? By contrast, in Norway property transaction taxes are a small fraction of what they are in the UK, and the legal contracts are standardised so you don’t need to burn huge amounts of cash on lawyers. You can bid for properties by sending a text message on your phone. (no lawyers). Mortgages for primary residence are tax deductible. As a consequence of all of these policies, the proportion of people renting is much lower, since it is more economic to buy.
In short, the solution is simple: make it cheaper to buy and sell properties to encourage workforce mobility. Incentivise home ownership through the tax system. Discourage additional investment properties by making it less tax effective than selling, but not so punitive in recognition that some people want to move back to their former homes as their circumstances change. The whole British economy seems to be premised on an antiquated notion that people spend their whole lives in the one village that they were born.
Didn't Jake Thackary have it " Will never use three or four words when a couple of thousand will easily do".
Song is called "On again, On again", btw.