In publishing a recent survey, Generation Rent (a group that represents tenants in rental properties) noted...

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In publishing a recent survey, Generation Rent (a group that represents tenants in rental properties) noted that property rental prices have increased by an average of 17 percent in London, and 12 percent in the rest of the UK. They blame the rise on letting agents and landlords taking advantage of their tenants to earn excessive profits. Question: Is it likely that the market structure for rental properties supports the argument that landlords earn economic profit? What other explanation could there be for the increase in rental prices? In publishing a recent survey, Generation Rent (a group that represents tenants in rental properties) noted that property rental prices have increased by an average of 17 percent in London, and 12 percent in the rest of the UK. They blame the rise on letting agents and landlords taking advantage of their tenants to earn excessive profits. Question: Is it likely that the market structure for rental properties supports the argument that landlords earn economic profit? What other explanation could there be for the increase in rental prices?

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Answer 1 Is it likely that the market structure for rental properties supports the argument that landlords earn economic profit Yes it is likely that ... View the full answer