It really depends on the local price:rent multiple. In some places the price gets driven up because landlords are counting on future capital appreciation rather than cash flows from rent.
" The gross rental yield on the average London property last year stood at 3.5 per cent, according to research from Deutsche Bank. In other words, a landlord buyer at these levels, according to the bank, will typically require 200 years to pay off their mortgage after tax and interest are taken into account using only the cash flows from their property, assuming a 65 per cent loan-to-value ratio, a 35-year mortgage term and a constant rate of interest."
https://www.ft.com/content/922574d8-5cc4-11e7-b553-e2df1b0c3...
In other words - the landlords are taking a levered risk that renters are not.
" The gross rental yield on the average London property last year stood at 3.5 per cent, according to research from Deutsche Bank. In other words, a landlord buyer at these levels, according to the bank, will typically require 200 years to pay off their mortgage after tax and interest are taken into account using only the cash flows from their property, assuming a 65 per cent loan-to-value ratio, a 35-year mortgage term and a constant rate of interest." https://www.ft.com/content/922574d8-5cc4-11e7-b553-e2df1b0c3...
In other words - the landlords are taking a levered risk that renters are not.