We are in interesting times in the property business, at Parsons Son & Basley we have been buying and selling property since 1825 and over the years we have learnt to note the trends.
2016 has brought some specific challenges as the stamp duty surcharge was introduced on April 1st and over 80% of landlords reported they were not intending to add to their property portfolios this year. And this news comes with the backdrop of the government being urged to facilitate the delivery of 1.8 million rental homes by 2025. In 2001 2.3 million people were renting homes, by 2014 this had jumped to 5.4 million.
New figures from the Royal Institution of Chartered Surveyors reveal a sharp drop in supply of rental properties. The RICS suggest local authorities holding brownfields sites should be encouraged to release land for such properties.
RICS spokesman said “Our latest figures show an increasingly unaffordable house prices, the majority of British households will be relying on the rental sector in the future. We must ensure that it is fit for purpose, and the government must put in place the measures that will allow the rental sector to thrive. Any restrictions on supply will push up rents, marginalising those members of society who are already struggling”.
Darren Williams, Head of Residential lettings at Parsons Son & Basley comments, “On the back of this month’s findings, RIC’s have offered the government some very sensible advice, we have experienced a severe decrease in new and existing buy to let investor purchases here in Brighton & Hove which in turn is effecting supply to the private rental sector, the governments stamp duty surcharge has had the desired effect on buy to let investors but the supposed boost for first time buyer purchases has not happened, in fact the figures suggest a 15% decrease. All of us involved in the property sector and government want there to be good accommodation available for all who need to rent. We need both private and public organisations, policy makers and investors to work together to provide the rental market with the opportunities to provide rental homes for all.’