Staines' Generation Rent set to grow by 340 households by 2021

Some commentators are saying buy to let is about to die, what with the new stamp duty changes and how mortgage tax relief will be calculated going forward. Some say 500,000 rental properties will flood the sales market nationally in the next 12 months as landlords leave the rental market. ‘Bad news sells newspapers’ – never a truer word in this case as far as I can see. Let me explain why I think buy to let in Staines is only going in one direction – and not the direction the papers are predicting. According to Sheffield University, buy to let landlords will continue fuelling the growth of the private rented sector in the coming decades. By their estimates (and they are considered a centre of excellence on the topic), the rate of homeownership nationally will fall to 50% (today it is 72.6% in Staines) by 2032, while the rate of private sector renting will increase to 35% (interestingly, in Staines, it stands at 15% today). Demand for rental accommodation in Staines will grow by 340 households in the next five years Over the last six years, Staines’ property values have risen significantly more than average wages/salaries, so given that homeownership and mortgage availability is dependent on your ability to pay, home ownership has been pushed further out of reach for many, at a time when the stock of council houses has actually withered. Nationally, the number of council houses in the last ten years has dropped from 3.16m to 2.18m households - a drop of 31.1%. The Tory’s efforts to fix the deficiency of affordable housing have focused on those who want to buy a home, from their Help to Buy, their much vaunted Help to Buy Isa, and their Starter Homes Scheme, an initiative offering a 20% discount for first time buyers … but if you are unable to save for the deposit ... none of this means anything to you – which is where the bulk of the ‘20 somethings of Staines find themselves ... yet they still need a roof over their heads! Currently, 3,783 people live in private rented accommodation in Staines These are big numbers and a sizeable chunk of the electorate. So whilst it appears Staines “Generation Rent” youngsters will continue to rent, Staines buy-to-let landlords will be encouraged by the projections of greater rental demand. Staines and the area around it still offers the prospect of strong economic growth forecasts and has a reputation as a desirable place to live within good commuting distance of London. So, by 2021, the number of rental properties in Staines will rise to 2,338 Written April 2016 I