Originally Posted by Chrisch
Who are they selling to? The reality is there are a certain number of people and a certain number of properties. I rent because it is cheaper to do so, if it were cheaper to buy I would buy. Same person, one property - landlords sell up, I buy. We looked at buying here about 4 years back but the prices were bonkers. We would have rented it out when we left, but it didn't make financial sense. My neighbours rent the other half of our property and have just bought a property to rent out so they have their own place when they retire.
People make all sorts of assumptions about what is going on to suit their own point of view. Some landlords might well be selling some might be buying. What I can say for a fact in that there is massive building going on so the supply is increasing. I would suggest the interest rate is much more of a concern than the overall market size. Don't overlook the big companies getting into rental and the build to let market. Rents track what people are prepared to pay not the other way round. Landlords are price takers not price makers, a weak position. There are better investments but your point about mortgages is correct - but then this is the one asset class you can readily borrow against if you have no real money to speak of - hence it's popularity. That favours a long term view - which begs the question of why people are selling up?