Ayelsbury – massive drop in homeownership

 

Ok, a slight turn of phrase there on the classic, an Englishman’s home is his castle but when it comes to the UK the ‘Brit’s are still a nation of homeowners ‘(although wasn’t it Napoleon who thought we were all shop keepers!). It is interesting to note that up until the mid to late 1960’s, more people rented their home (albeit mostly from the local council) than owned their own. In fact, I was surprised to read that in 1921, over 75% of homes in England and Wales were privately rented with the remaining 25% being owner occupied. 

It was only after the Second World War, when the Beatles were rocking, that people started to buy instead of rent ... but instead of owning our property outright, we borrowed money from banks and building society’s to buy them and the roots of the growth of the private rental sector can be drawn back to the late 1970’s early 1980’s, when the council houses began to be sold off under the right to buy scheme. Even though 48,864 households in Aylesbury were owner occupied in 2001 and that number had actually increased to 49,702 households by 2011, the percentage of homeowner properties in Aylesbury dropped drastically from 75.72% to 71.61%. Why, because whilst an additional  4,880 properties were built in Aylesbury between 2001 and 2011, a lot of them were bought as buy to let investments, thus more than doubling the number of private rental properties in Aylesbury. In fact, the number of properties in Aylesbury that were privately rented jumped from 4,125 in 2001 to 8,096 in 2011!

With no more council houses being built, this is increasing the number of people looking to renting, as everyone needs a roof over their head. With the Aylesbury Vale Council house waiting lists being in the 5 to 10 year range for a decent property in a decent location, it shouldn’t be forgotten that it is often Aylesbury landlords who house tenants waiting for a council house. Aylesbury landlords do not receive any subsidies from HMRC and income tax is paid on rent paid by the tenant.

However, in Aylesbury, as we have noticed more and more of the younger generation are renting because they can‘t afford to buy (raising a deposit being the sticking point for most), and a high percentage of the expansion in private renting actually comes from those who need and want temporary or short term accommodation. There are even a few landlords who rent their own Aylesbury property out for the short term, for ease, and not necessarily purely for profit.

With every report stating the rental market will continue to grow throughout the rest of this decade, with high demand and limited supply in the Aylesbury area now is still a good time to get in to the market. I have spoken to numerous landlords over the last couple of weeks who wish they had bought last year or at worst the early weeks of this year as prices have risen sharply. Those landlords who acted have already seen capital growth…two properties I have put on the market for new landlords this week (they have just completed) have already seen in excess of a £10,000 increase in the value of their investment.

 If you are considering buying a property for investment in the near future in Aylesbury, I am always happy to give you my considered opinion on which property to buy (or not as the case may be) to give you what you want from your investment. You may be seeking capital growth, monthly yield or a measure of both, it is important to purchase the right product to suit your needs. If you are a landlord, new or old, I am certainly more than happy for you to pick up the phone (01296 398555), pop in to see me in temple Street or visit the Aylesbury Property Blog http://theaylesburypropertyblog.blogspot.co.uk/

Princess Nala looking regal...note the muddy paws, my garden looks like the surface of the moon.