It's hard to see how rent can be disconnected from the property value because if the achievable rent for a property skyrockets that will pull the property's value up.
If rent goes up faster than wages, which cannot go on forever, it means an imbalance between supply and demand. The best way to address this is to rebalance supply with demand, not to be tempted to control prices or whatnot that do not resolve the root cause.
It must also be accepted that the most sought-after areas will be the most expensive and probably out of the reach of many.
> It's hard to see how rent can be disconnected from the property value because if the achievable rent for a property skyrockets that will pull the property's value up.
In a free market (the UK is about as free a market as you get in relation to property ownership and rental), this might be true. But it does depend on how regulated the market is, in terms of rent controls etc. I'm not sure this would hold for an older, or bigger, or more difficult to maintain property in an area with a high percentage of renter competition in some European countries, for example (e.g. Germany).
Rent controls do not solve any issues. They certainly don't make it easier to find a home. They only tend to restrict supply and to discourage people from moving.
> It's hard to see how rent can be disconnected from the property value because if the achievable rent for a property skyrockets that will pull the property's value up.
It's the other way around that disconnects happen: rents stay the same and property prices go up.
But that's not why you got downvoted, no. You misunderstand price controls. It doesn't mean that everybody should have access to a nice apartment in a sought-after area. It means that I should have access to a nice apartment in a sought-after area.
If rent goes up faster than wages, which cannot go on forever, it means an imbalance between supply and demand. The best way to address this is to rebalance supply with demand, not to be tempted to control prices or whatnot that do not resolve the root cause.
It must also be accepted that the most sought-after areas will be the most expensive and probably out of the reach of many.
Edit: So much for mature discussions, I see...