Hacker News new | ask | show | jobs
by _0o6v 2035 days ago
> 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).

1 comments

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.
They solve predatory rent increases.