Should
you buy or rent a house? Buying your own home can be expensive but could save
you money over the years. Renting a property through a letting agent or private
landlord offers less autonomy to live by your own rules, with more flexibility
if you need to move.
Yet,
there is third way that many people seem to forget, yet it plays an important
role in the housing of Mid Sussex people. Collectively known as social housing,
it is affordable housing, which is let by either Mid Sussex District Council or
a housing association to those considered to be in specific need, at rents
below those characteristic in the private rental market.
In
Burgess Hill for example, there are 1,246 social housing households, which
represent 10.11% of all the households in Burgess Hill. There are a further
1,420 families in the Mid Sussex District Council area on their waiting list,
which is similar to the figures in the late 1990’s. The numbers peaked in 2014,
when it stood at 5,281 families, so today’s numbers represent a drop of 73.1%.
Nevertheless,
this doesn't necessarily mean that more families are being supplied with their
own council house or housing association property. Six years ago, Westminster
gave local authorities the authority to limit entitlement for social housing,
quite conspicuously dismissing those that did not have an association or link
to the locality.
Interestingly,
the rents in the social rented segment have also been growing at a faster rate
than they have for private tenants. In England, the average rent in 1998 for a
council house/housing association property was £183.08 a month, whilst today
its £381.03, a rise of 108% in 19 years.
When
comparing social housing rents against private rents, the stats don’t go back
to the late 1990’s for private renting, so to ensure we compare like for like,
we can only go back to 2005. Over the last 12 years, private rents have
increased nationally by a net figure of 19.7%, whilst rents for social housing
have increased by 59.1%.
Rents
in the private rental sector in Mid Sussex will increase sharply during the
next five years. Even though the council house waiting list has decreased, the
number of new council and housing association properties being built is at a 70
year low. The government crusade against buy-to-let landlords together with the
increased taxation and the banning of tenant fees to agents will restrict the
supply of private rental property, which in turn using simple supply and demand
economics, will mean private rents will rise – making buy to let investment a
good choice of investment again (irrespective of the increased fees and
taxation laid at the door of landlords).
It will also mean property values will remain strong and stable as the
number of people moving to a new house (and selling their old property) will
continue to remain restricted and hence, due to lack of choice and supply,
buyers will have to pay decent money for any property they wish to buy.
No comments:
Post a Comment