The Private Rental Sector Could Be Due For A Massive Rise It’s Simply Obvious !
// August 12th, 2010 // Comments // Real Estate
It’s pretty obvious . Great Britian is overcrowded. Hardly a week goes by without an article on the Local news about a shortage of housing somewhere in Britain . Government initiatives to provide cheap housing seem destined never to keep pace with the insatiable demands of the public and the changing demographics within Britain taken on the whole . Governments are rarely proactive and are always playing a game of catch up. So at any given instant , the demand for housing within Britain is outstripping supply and anything the government does is very often too little too late.
Public housing construction has been in a steep decline for years now, and even modern planning regulations requiring developers to provide an amount of so called “social housing” with each new development over a certain size does not create a real impact on the burgeoning demand for housing within Britain.
A question to ask is why do We Buy Houses at all? Well the answer to this is pretty simple. We Buy Homes because we are addicted to the perception that when We Buy Houses we get a security of residence – it’s one of the basic requirements after all , to have a roof over our heads. If I was to Sell My House probably the first thing I would do is to look at the property market with a view to getting another one . But there may well be a interval where I would have to think about a interval in rented property and there I may well have something of a shock .
When I come to Sell My House I may very well find that the period between getting out of the property and buying another one would not be adjoining each other so I would have to rent for a while . But rental property is at a premium round by where I live and good quality properties are difficult to come by. So demand is high for anything that is half decent and at a sensible rent. This of course creates pressure on the sub premium property sector as all the good,high quality rentals are being taken up. It’s something of a constriction all round and I am just an example of why someone needs or wants to enter the rental sector as opposed to buying a property .
When We Buy Homes generally it is assumed that the property is to be bought as a main or sole residence. Probably external factor will have caused a landlord to start renting the property out to tenants, a move away from the area, say, or a temporary financial difficulty. However this is usually with a view to getting the property back to live in at some stage. Thus when the property is turned over to the private rental sector it may only be for a short period before the landlords circumstances change. It’s well known that these are difficult monetary times so a number of house owners are forced to rent. But it’s not true that the supply of rental properties is going to increase because of this phenomenon. In practice people that have relinquished their own property for the time being are still going to need somewhere to live escalating the demand for more reasonably priced rental accommodation in the short to medium term. And if families with children are obliged to find accommodation other than their own house then the local authorities are legally obliged to find them some place to live again increasing the demand for affordable rental properties.
Certainly the medium to good quality, good value bit of the private rental market is going to go through some busy periods recession or no recession.

















































