This thread is in danger of veering off-topic, so while I genuinely sympathise with those unable to get on the housing ladder (those who did were lucky to get their timing right), I think that demonising BTL landlords and squarely blaming them for the current housing crisis is oversimplifying a very complex matter, Ben.Average house prices have risen to levels unaffordable to most because of two factors: availability of cheap credit (greedy bank managers) which in turn enabled reckless house buyers to overstretch themselves financially by purchasing properties they simply could not afford (greedy bank customers). As far as the recent popularity of residential property as an asset class is concerned, this is directly related to the pensions crisis gathering pace over the past decade (a combination of greedy financial advisers and even more greedy shareholders).I do think you may have a genuine point about BTL contributing to the problem if you refer to heavyweight residential property investors with massive multi-property portfolios with enough clout to influence rent levels in an area, but certainly not small fish like us merely supplementing family income with a single property, paying our taxes, treating our tenants with respect and charging below market rates which is precisely why most stay with us for years, moving out usually only when relocating jobs.One other important factor to consider for young families when planning their finances is the cost of childcare, which has risen exponentially over the last few years. This means that unless the mother is fortunate enough to enjoy a higher tax band salary, anything below that would hardly be sufficient to cover childcare costs in London. In other words, she would rarely see her kids having to work full-time just for the pleasure of paying the babysitter.Therefore, if you look at this from my point of view, purchasing an additional property, albeit on a mortgage, and not blowing the entire budget on a flash house in a more expensive area of Ealing, should resolve the question of my wife's future pension, enable her to provide the best childcare possible to our children, establish a safety net should I find myself in-between jobs, while providing a valuable service to a section of society not interested in buying their own property at a particular point in their lives due to, for example, changeable nature of their employment.I hope the above explains in sufficient detail why, to a large degree, I disagree with you.
Tom Carroll ● 5006d