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Andrew May

wrote:

The BTL market will affect price to some degree, but primarily prices
depend on the cost to build new, which in this country is
excessively high. Removing btl would not reduce the cost of new
build any.

In economic terms it is pretty much the other way around. The secondhand
market is the price-setter, the new build the price follower. If the
price of second-hand property falls then builders will be forced to
lower their prices in order to sell. To maintain some semblance of
profit and given the relatively fixed costs of building this will result
in a fall in the price of land - which has no intrinsic value other than
a value based on what one can do with it - usually build houses.

Andrew