According to a government think tank, the answer is “yes”. Two reports published by the
Strategic Society Centre have looked at UK landlords and how they borrow money.
The authors of the report concluded that landlords should be prevented from buying new build properties and a cap should be placed on mortgage lending to landlords.
Unequal Division of the Wealth
The reports state that landlords are growing rich as a result of the buy to let property boom, mostly at the expense of their tenants. This situation has created an unequal distribution of wealth and the only way to restore the balance is by doing the following:
- Stop landlords buying new build properties
- Cap mortgage lending to landlords
- Homes less than 3 years old must be owner occupied rather than let out to tenants
James Lloyd, author of one of the centre’s reports said: “Most private landlords are not
getting rich off the taxpayer, but instead are receiving transfers of income and wealth from
tenants, who are significantly poorer than they are.”
Of course landlords are unlikely to agree with the report’s recommendations. Private landlords are providing a valuable service to the housing market. Without their assistance many more people would be homeless as a result of the dire shortage of social housing in the UK.
The Average Landlord
Further research comparing the wealth of landlords and tenants has highlighted some
interesting facts about landlords and tenants.
- 45% of landlords have assets of more than £30k
- The average landlord has a financial wealth of £75k
- The average age of a landlord is 48; the average age of a tenant is 32
