What would happen if someone bought every property?

UrWntr

Let's pretend Warren Buffet would like to start a buy-to-let empire in the UK with his £50bn bankroll.

If we take an average house price of £200k, he could purchase apprixmately 250,000 of the UK's properties.

This may not be enough to purchase every property in the UK, but he could certainly create a monopoly in many areas.

Is there any legislation in place to prevent this from happening? What would the effects be on the economy?

Now while this thought may be entirely unrealistic, it does help to highlight the effects that the long term rise in buy-to-let investments will have on the economy.

CLAPTON

so he would own about 1.5 % of the UK properties
doesn't sound a lot

paulmapp8306

house prices (of those left ont he market) would go up, and the cost of renting would go down.

I susspect such people realise what they would make in rent would be less than the current rates would indicate - and thats why its not happening. If you have that sort of money there are better investments.

zagfles

Legislation isn't needed, the seriously wealthy investors invest in far more profitable ventures than BTL housing...

UrWntr

zagfles wrote: »

Legislation isn't needed, the seriously wealthy investors invest in far more profitable ventures than BTL housing...

This is a discussion about an unrealistic theoretical event :j

PasturesNew

Google: Fergus Wilson ... from Ashford.

sabretoothtigger

Let's pretend Warren Buffet

Or more likely the government which is sometimes the case

zagfles

PasturesNew wrote: »

Google: Fergus Wilson ... from Ashford.

:rotfl:

This article in 2007: http://www.dailymail.co.uk/news/article-431224/How-maths-teachers-clocked-707-houses-240m-fortune.html

And this one in 2009: http://www.thisismoney.co.uk/money/mortgageshome/article-1683560/Buy-to-let-icons-owe-350000-on-mortgages.html

I don't think we need fear Warren Buffet trying to emulate them...

DervProf

PasturesNew wrote: »

Google: Fergus Wilson ... from Ashford.

I wonder how he's doing these days.

I take it that no news means that things aren't quite so rosey for the man who told us that house prices double every 7 years.

UrWntr

paulmapp8306 wrote: »

house prices (of those left ont he market) would go up, and the cost of renting would go down.

Surely if the same person/company owned all of the properties in an area (and surrounding areas), they could dictate the rent prices?

Doesn't no competition lead to higher prices?

chewmylegoff

Doubt anyone has 4 trillion quid to spare at the moment, so it's quite unlikely. Also, in general it would be quite difficult to buy everyone's house given that most people wouldnt sell up if they couldn't buy another house to move to.