The campaigning has finished, the result is now know and having spoken to many friends, landlords and tenants over the last few weeks I am surprised that the markets were so sure that the result would be in favour of remaining to the point that the markets and value of the pound all rose yesterday before the polls closed. I feel that this shows how the markets/large financial institutions based in London possibly don’t see the bigger picture outside of the M25. As expected London on the whole voted to remain, but this was a UK vote so hopefully in the future they will remember to consider the rest of the country.
How is this likely to impact on Leighton Buzzard and the surrounding areas ? Leighton Buzzard, Dunstable and Luton are now seen as ‘London Overspill’ and over the last 24 months we have seen homeowners and tenants who cannot afford the prices of property in London, Watford , Hemel Hempstead and St Albans moving to Leighton Buzzard , Luton and Dunstable where the prices are affordable and they still have links to London on the M1 and by rail. Of course there is ‘London Luton Airport’ ( this one not renamed by Michael O’Leary of Ryanair ) and in February 2015 REMAX Property Centre advertised a development of luxury flats in Luton as "one of the most cosmopolitan areas of London". This advert was removed but it does highlight the link being made between London and the nearby towns. This increase in demand has seen the prices of property to buy and rent increase sharply in the last 12 months although as noted in my article on the 4th April there has recently been a slowing evident in the market with a number of properties both for sale and to rent being reduced in price. The demand for rental property in Leighton Buzzard is still very high and the quality of property expected by tenants increases as they see renting as a lifestyle choice. Many workers are from EU countries such as Poland, Romania and Hungary and require rented accommodation in the nearby area. The Brexit result does not mean EU nationals already living here will leave so don’t expect a mass exodus. The sales market will be harder to predict as the impact of the rising London house prices has pushed buyers out to Leighton Buzzard. Many of the properties bought in London are investment properties for overseas investors and the economic slowdown in countries such as China has resulted in these investors pulling back on their London investments. This has resulted in a slowing down in the London housing market which is likely to have some impact on the surrounding towns. As we saw form the London financial markets predictions for the referendum result and the resulting swings in the markets before and after the result any impact is likely to bear on the London market and ripple through to the towns just outside the M25.
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Buy-to-let property investors are spending too much time worrying about the effect of the EU referendum on the UK lettings market when there are far more dangerous factors threatening UK housing. It is clear that there are just not enough properties for rent in the UK to satisfy tenant demand - and that fundamental priority will remain unchanged by the referendum. The number of rental properties throughout the UK has been falling year on year and nationally stock figures are currently five per cent down over the same period in 2015. The referendum is causing uncertainty both for home buyers looking to buy properties and landlords looking to invest in properties, but this is making no difference to tenant demand which still remains extremely strong. The real problem lies in the poor government strategy that has been worsened by two blunders hitting the number of people buying new properties to rent and the number of landlords investing in more properties.
The figures from the Belvoir group of which I own the Dunstable franchise shows that last month Belvoir was advertising 1,994 properties for rent compared with 2,269 at the same time last year, a 12% drop. The Government should be incentivising landlords to increase the national housing stock, but if you choke off the supply of rented homes then property prices will rise and rents are likely to be forced higher. For the last 20 years landlords have been plugging the gap in the housing market caused by the disappearance of council houses, from 3.5 million to 1.6 million, and the slow growth of new replacement social housing. Successive governments have failed to address the imbalance and the declining availability of homes for rent is becoming a crisis issue. This is the real problem – and one that the EU referendum will not change. What is needed is an aggressive Government plan to build more housing, especially social housing. Serious consideration given to reversing landlord tax changes will undo some of the recent damage to the private rented sector and increase the future supply of rented homes which are desperately needed by 10 million tenants across the UK. ![]() FREE invitation to the June Luton Property Investors Network (PIN) Meeting – Tuesday 28th June – Meet new and experienced landlords and investors. Multiply Your Profits from Serviced Accommodation – John Kerr Imagine that you could earn tax-free income each month renting out your spare room, sofa, converted shed, caravan, motor home or perhaps even a tree house! And landlords, imagine multiplying your profits many fold from your long lets. And imaging all this without any routine day-to-day work! Yes, it is technically possible to automate your self-catering accommodation business serving one or more of the 18 short stay market segments – there’s almost certainly one in your area. ALSO… The Quickstart Guide To High Cashflow With Rent To Rent – Mark Beal and Justin Whittemore Are you looking to understand the deep routed intricacies of rent to rent? Maybe you are trying to find reassurance that it is a legitimate strategy in what some consider to be a dubious field? Are you still a bit sceptical and thinking “Why on earth would a landlord let you do this?” At this months Luton pin, armed with an incredible back story of property experience, Mark is going to share with you the very best in rent to rent management and deal sourcing techniques. These techniques and processes when implemented the right way, will sky rocket you to success. Of course there will also be the usual great networking and opportunities to meet and share ideas with like-minded property people, both before the meeting at 6pm, and then again during the break and after the meeting in the bar. So bring along plenty of business cards and arrive early so you not only get the best seat, but also have more time to meet the best people! If it is your first time attending a PIN meeting you can use the code below for FREE entry Click on this link: https://www.pinmeeting.co.uk/luton/ Click “Book using a voucher code” Insert you contact details Enter “belvoirluton” into voucher code box and click apply voucher button Click, “Click Here to book your place now” - An email confirmation will be sent to you This is a new type of residential accommodation which has just opened in Willesden, north-west London which is like student halls, but for people starting their career in London. A step up from a HMO.
‘The Collective’ is believed to be world’s largest “co-living” scheme with 546 people living across 10 floors. The majority of rooms in the 550-bed block are 10 sq metres and prices start from £195 per week and go up to £330 per week all bills included. The property which is a converted office building contains a gym, spa, restaurants, bar, retail outlets, events spaces, roof terraces and for an extra fee there are yoga classes, film nights, running clubs and live music. Regular cleaning and linen changes are offered as standard in every room and every floor has beautifully designed shared kitchens and lounges. There are communal entertainment spaces, luxury facilities and dining rooms for private and social events. This is like student accommodation but for professional people who cannot afford the increasing rents in the larger cities but it does point out the higher level of accommodation expected by renters today especially in the sharing market. The days of knocking a 3 bedroom house into a 5 bedroom HMO with minimal internal adjustments apart from locks and fire doors are numbered and higher specification shared accommodation is now being sought by young professionals. More information on The Collective can be found here www.thecollective.co.uk/ |
AuthorDaniel Bourke is the owner of Belvoir Lettings Dunstable and in his previous career in Architecture he was an Associate in a leading London Architectural practice Archives
December 2017
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