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Friday, 2 May 2014

Friday, May 02, 2014 Posted by Hari No comments Labels: , ,
Posted by Hari on Friday, May 02, 2014 with No comments | Labels: , ,

Chris talks to a free-market fundamentalist...

SOURCE GUARDIAN: Buy-to-let landlords got an annual return of 16.3% since 1996, dwarfing other investmentsBuy-to-let investors have made £12,000 profit on every £1,000 they put into property since mortgages for landlords were first launched in 1996. This annual return of 16.3%, buoyed by fast-rising house prices and rents, far outstripped every other type of investment. Over the same period shares would have earned investors 6.8% a year, bonds 6.5% and savings in the bank 4%. Critics say landlords have elbowed first-time buyers aside, pointing to the fall in home-ownership levels in the UK since their peak a decade ago. The proportion of homes lived in by owner-occupiers had fallen to 65.2%, down from 71% in 2003 and at its lowest level since 1987. Alex Hilton, director of Generation Rent, set up to represent Britain's 9 million renters, said: "While a 16.3% annual profit makes the UK buy-to-let market a hugely lucrative investment for landlords, it's time to count the cost to their captive tenants. It drives up rents and kills the dream of home ownership for millions of tenants, but worse than that, our ComRes poll in March showed that a third of tenants are cutting back on food and two fifths are cutting back on heating – just so they can pay their rents. If retailers hoarded food as a limited resource and profiteered from the consequent price rises, there would be riots on the streets. The buy-to-let market is doing to tenants is having the same effect. People are going hungry so that other people can get rich quick."

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