Rental properties in short supply

Published: 09/06/2011

Poor old, should-be first time buyers! Already struggling to get on the property ladder, they have little other option but to rent. And now, experts are predicting further troubles with renters potentially finding themselves ‘priced out’.

Even despite the financially turbulent times we remain in, landlords have still been able to hike up their rents. 32 per cent of landlords increased their prices in Q1 with 20 per cent of those raising them by 4 per cent and 5 per cent by a whopping 8 per cent¹. The average month rent in England and Wales is £692² while average rent for a London property is a staggering £988³ (per calendar month) and is soon expected to surpass the £1,000 mark for the first time.

“Lack of new homes and fewer homes in the social rented sector”4 are large contributors to the problem as tenants outnumber available rooms by five to one5. This has prompted urgent calls for a “proper co-ordinated housing policy”4 which, experts believe, can only come from the government.

And it would seem Liverpool council have heard these calls. The city’s council are now considering putting £9million worth of property onto the market in an effort to minimize the shortage.

The potential portfolio of over 40 properties but it is estimated 70 per cent of them would require renovation to meet current housing legislation.

Liverpool Council Leader, Joe Anderson, told the Liverpool Daily Post:

“We will be talking to the heritage people within the council and registered social landlords to see whether they will refurbish them.

“We don’t know really how much it’s going to cost to put them right. If we sell them, it’s a good deal for the council and it stops us having to find the money to put them right.

“But it’s better than leaving them to deteriorate as the previous administration did.”6

The council have a variety of choices from giving the property to registered social landlords, to selling the property outright to investors.

Sources
¹Mortgage Strategy (May 2011)
²BBC Business (May 2011)
³London Evening Standard (May 2011)
4Mortgage Strategy (June 2011)
5The Telegraph (April 2011)
6Bridging and Commercial (June 2011)

Content correct at time of publication