Was 2010 the stabilising year between the financial crisis and a year of growth for 2011?
In 2010 the new Coalition Government decided to change Labour’s requirement for all Houses in Multiple Occupation to have planning permission but not abolish the initiative.
The Coalition Government decided to end Labours plans for regulation for all letting agents and a landlord register.
The National Landlords Association announced the Private Rented Sector now accounts for 14.7% of all households in the UK (158% growth since 1997).
The number of loans and lenders in the buy to let market over doubled during 2009. Average selling prices in December 2010 for all dwellings in Peterborough alone are up 1.2% since December 2009; down 11.3% since December 2007 according to Zoopla. The best performing individually are flats showing growth at 10% since December 2009.
In 2011 we can expect to see demand for rental properties to continue growing fuelled by a number of factors:
- Young folk prioritising lifestyle costs over saving for a mortgage
- Convenience offered by renting as against the ties owning
- Increasing number of people with poor credit ratings not qualifying for a mortgage
- University Centre in Peterborough continuing to grow
- Population expected to grow.
House prices to increase? Too much uncertainty to be clear but there are positive signs – more lenders; low interest rates; growing population; more new employers to Peterborough and gradually growing confidence.
Rents to increase? If demand for renting continues as forecast then expect rents to increase in particular for the smaller more popular properties.
Challenges facing Peterborough landlords in 2011:
- Local Housing Allowance paid to claimants will drop from 1st April 2011. Broad Rental Market calculation will change from a 50th percentile to a 30th. The 5 bedroom allowance will be scrapped capping claims to 4 bedrooms. Landlords who have let to Social Renters may withdrawn from this market as the future LHA amount is little different to the normal local market and doesn’t cover the risks involved.
- Will Peterborough City Council decide to rule in favour of planning permission for Houses in Multiple Occupation? This could mean a landlord would need planning permission to let to 3 sharing tenants. Is there a real need for this or is it a sledge hammer to crack a small problem?
If you are thinking of renting a home or letting an investment select your Peterbrough lettings agent wisely. Using an ARLA Licensed agent will protect you. Members of ARLA have strict operating procedures with trained and qualified staff plus client account auditing and client money bonding.
For free advice or more information contact the writer; Terry lucking of Belvoir Lettings and local chair of the Peterborough branch of the National Landlords Association on 01733 321500 or terry.lucking@belvoirlettings.com www.belvoir.co.uk/peterborough
