Will The Government's 'White Paper on Housing' Transform Stamford's Property Market?

The Stamford and Rutland housing market has gone through a sea of change in the past decades with the Buy-To-Let (BTL) sector evolving as a key trend, for both tenants and landlords.

A few weeks ago, the government released a 'White Paper On Housing'.

I have now had a chance to digest the report and wish to offer my thoughts on the topic...  

It was interesting that the private rental sector played a major part in the future plans for housing. This is especially important for our growing Stamford and Rutland population.

In 1981, the population of South Kesteven stood at 98,400

and today it stands at 138,900.

Currently, the private rented / buy-to-let (BTL) sector accounts for 16.6% of households in the town.  

The government wants to assist people living in the houses and help the economy by encouraging the provision of quality homes – this in a housing sector that has grown due to worldwide economic forces pushing home ownership out of reach for an increasing number of the population. Interestingly, when we look back at the 1981 figures for homeownership, a different story is told:

In 1981, 58.98% of Stamford people owned their own home.
In 1981, 28.61% of Stamford people rented from the council or housing association, and 12.42% of Stamfordians rented from a private landlord.           

 

The significance of a suitable housing policy is vital to ensure suitable economic activity and to create a vibrant, desirable place to live in.

With the population of South Kesteven set to grow to 161,000 by 2037, it is imperative that South Kesteven District Council (SKDC) and central government don’t hold the area back, but proactively work together to encourage the building and provision of quality homes.

One idea the government has proclaimed is a variety of measures aimed at encouraging the Build-to-Rent (BTR) sector (instead of the BTL sector). These include allowing local authorities to proactively plan for BTR schemes, and making it simpler for BTR developers to offer inexpensive private rented homes.

To do this the government will invent a distinct affordable housing class for BTR, called ‘Affordable Private Rent’, which will oblige new homes builders to provide at least 1 in 5 of a new home developments at a 20% discount on open-market rents and 3-year tenancies for tenants. In return, the new homebuilders will get better planning assurances. 

Private landlords will not be expected to offer discounts, nor offer 3-year tenancies – but it is something Stamford and Rutland landlords need to be aware of as there will be greater competition for tenants.

Over the last 10 years, home ownership has not been a primary goal for young adults as the world has changed. These youngsters expect ‘on demand’ services from ‘click and collect’, Amazon, Dating Apps and TV with the likes of Netflix. Many youngsters see that renting more than meets their accommodation needs, as it combines the freedom from a lifetime of property maintenance and financial obligations, making it an attractive lifestyle option.

Private rented housing in Stamford and Rutland, be it BTL or BTR, has the prospective to play a very positive role.

 

If you would like a FREE VALUATION of your own home or property investment for either sales or rental purposes, please get in touch. We are here to help you.

David Crooke
david@upp-property.co.uk

Owner and managing director

 

Understanding People & Property

SALES & LETTING AGENTS 

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