Rents are high because people will pay that much. House prices are high because people will pay that much. If investors could not profitably buy and rent an house at the prices being asked then they wouldn’t buy them.
Increase housing supply and prices will come down. Decrease demand and prices will come down.
Currently there’s pressures pushing up demand like large scale immigration + an aging population meaning less children living at home, and factors pushing down supply like skills and materials shortages in the building industry due to massive government infrastructure projects sucking up supply and zoning rules preventing housing being built in more desirable locations.
Rents are high because people will pay that much. House prices are high because people will pay that much. If investors could not profitably buy and rent an house at the prices being asked then they wouldn’t buy them.
Increase housing supply and prices will come down. Decrease demand and prices will come down.
Currently there’s pressures pushing up demand like large scale immigration + an aging population meaning less children living at home, and factors pushing down supply like skills and materials shortages in the building industry due to massive government infrastructure projects sucking up supply and zoning rules preventing housing being built in more desirable locations.