sten_super
Brain Surgeon
I don't really understand all the hostility to BTL's (I'm not one by the way). If you are fortunate enough to have savings, BTL is one of the few ways to get a return on your money - 6% nett if you're lucky. It's not all about mortgage rates, the rates offered at present to savers are appalling.
The return is precisely the problem. BTLers purchase a proportion of the housing stock (often concentrating on smaller properties with lower overheads should the property remain unlet) using their larger asset base (meaning they are able to afford more significant deposits than FTBers) driving up prices for these properties AND then compounding the problem by charging rents sufficient to cover the mortgage. The tenant is then stuck paying mortgage-level rent (in many cases plus a 'management' fee), making it more difficult to save for a house deposit of their own.
Private rental either needs to be tightly controlled (probably involving price guides, limited increases, secured long term tenancy, etc.) or made extremely unattractive financially (which might in fact involve similar measures, but could also include hefty tax rates on second properties).