The fall of the Tory party

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Stonehedge in reply to @NickCJ

Then, to the extent that a pool of privately-owned rental stock is desirable, increasing the blended cost of capital for landlords (by banning mortgages) is going to make rents even less affordable than they are today, ceteris paribus.

I disagree, the effect of banning mortgages for 2nd homes would be to significantly reduce the value of property because fewer people would be able to afford to buy a 500k house with a 50k deposit. Prices would adjust for that. More tenants would be able to buy a home. There would be fewer tenants paying landlord's mortgages.

I do largely agree with your point though. It requires huge investment in housing to make anything like this work.

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NickCJ in reply to @Stonehedge

Prices would adjust for that. More tenants would be able to buy a home.

There's always a tension in this argument. The strata of better-off tenants would have a better chance of buying their own place, I agree, but there is a less well-off bucket of tenants that would do worse.

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Stonehedge in reply to @NickCJ

Are those worse off tenants really that much worse off if they have secure long term tenancies with no no fault evictions , rent controls and minimal risk of unfair rent raises meaning that they can stay in their homes for decades and will always be paying affordable rent?

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