"Profit = Revenue - costs. How have you worked out the 70% margin without knowing any of the landlords costs? You've just chosen a number which happens to be 70 haven't you"
Take your simple equation and
1.Revenue for PSLs in HB is 70% above council rent levels
2. Council rents make a small surplus at 70% less revenue than PSL
3. Council renst incur higher expenditure cost than PSL rents due to regulatory burdens that PSLs dont have
Therefore, if PSLs get 70% more revenue (income) from HB than councils do and PSLs hae a lower expenditure cost then 70% profit margins for PSLs are conservative.
I note you fail to comment on my other points -
A) that the use of PSLs over council rents means a current £3.5bn per annum increase to the public purse
B) that this costs every household in the UK the equivalent of £140 more per year in tax just to pay the PSL added costs
C) that this proves the market you advocate so much fails in housing
And then the further obvious conclusion that as you state that private firms are more efficient then councils (which do return a surplus to the exchequer) then the 70% profit figure I mention is even more of an understatemant as PSL operational costs much be much lower than councils due to their uber-effficiency!
Or, conversely, I could have just plucked that 70% figure out of thin air!!!