June's Tenant News & Data

Can anyone remember the last time a cement truck went past?  New builds have reached their lowest number since the 1920’s, public spending cuts, unemployment and banking restrictions are laying waste to the housing sector, while statistics show a 4.5 million waiting list for social housing.

The coalition are in danger of putting their heads in the sand if they think a housing crisis is not on the horizon.  Since the beginning of the year, a reported 3.3million households are supported by the private rented sector.  With tenant demand at a high, landlords looking to increase their portfolio are hindered by constrained lending.  As recent housing benefit cuts will take effect next April, thousands of people will be looking to be re-housed, laying greater strain on both social and private sectors.

Countrywide reported a 16% rise in new tenants since the beginning of the year, the highest they’ve ever had, yet properties being offered fell 6% in the last three months, giving an average of 5.5 tenants for each available property.

On the surface, buy-to-let is a great investment if property can be bought below value price, but landlords are finding the CGT increase and LHA payment policy off putting, while lending from banks akin to the financial version of ethnic cleansing.  Unfortunately the government will not be able to forest gump their way through this situation and may have to look at fresh housing reform to attract investment through the PRS.

Madalena Penny