There aren’t enough homes in Basingstoke
The answer is clearly to build more property in the Basingstoke area. Unfortunately, for those badly seeking to buy or rent a home in Basingstoke, that takes a lot of time and massive amounts of money. So, what other solutions are there?
Talking to a Basingstoke client of ours recently, the subject of the housing crisis was mentioned. They suggested that all the empty properties in Basingstoke could be the solution to this problem. On the face of it, it seems so obvious. Now quite interestingly, we had recently done some research on this topic, which we want to share with you (as we did with them).
The most recent set of figures from 2022 state there are 1,772 empty properties in the Basingstoke and Deane Council area.
So, it begs the question, why not put these homes back into the housing system and help ease the Basingstoke housing crisis?
Whilst they stand empty, 4,061 Basingstoke and Deane families are on the Council House Waiting List for council houses.
Nationally, the picture is very similar. 1,206,376 families on council house waiting lists with 676,304 homes empty.
Surely, we can all agree that property left empty for many years isn’t morally right?
…yet, a different story emerges when you look deeper into the numbers.
Every October on one specific day, each local authority must report every property that is empty. Even if it’s only been so for a week.
Many of these Basingstoke and Deane properties are awaiting new homeowners. Or, in the case of rental properties, new tenants. Also most certainly, some properties are being refurbished and renovated, and some are deceased estates. Other properties have homeowners that have moved out and are in the process of being sold (e.g., a part exchange property).
Of those 1,772 Basingstoke and Deane homes lying empty, only 568 properties were empty for more than six months.
The fact is that the number of genuinely long-term empty properties is only a tiny drop in the ocean of the 76,645 properties in the area covered by Basingstoke and Deane Borough Council. Even if every one of those empty homes were filled with tenants tomorrow, it would only meet a small fraction of Basingstoke’s housing needs.
So, what does this mean for all the homeowners and landlords of Basingstoke?
This scarcity of available homes contributes to the maintenance of high rents. And this presents a favourable situation for Basingstoke landlords who are investing in buy-to-let properties.
Simultaneously, it also serves to keep Basingstoke house prices at a relatively elevated level.
The implications of this situation are particularly evident in the context of Basingstoke’s rental market. The demand for properties is exceptionally high.
Due to the challenges faced by young individuals in affording homeownership and the financial constraints limiting the construction of new council houses by local authorities, the growth of the rental market becomes an undeniable reality.
Consequently, landlords predominantly focus their investments on the lower end of the housing market, such as starter homes, further fortifying property prices.
This cyclical pattern sustains the entire market. Sellers, propelled by the increasing demand, progress up the property ladder, thereby enabling others to purchase homes and continuing the process in a chain-like manner.
These are indeed interesting times in the Basingstoke property market!
