Friday, 10 March 2017

How The Rented Sector Is Transforming The Aylesbury Property Market

The Aylesbury housing market has gone through a sea change in the past decades with the Buy-to-Let (B-T-L) sector evolving as a key trend, for both Aylesbury tenants and Aylesbury landlords. 

In 1981, the population of Aylesbury Vale stood at 134,200
and today it stands at 188,700. 

Currently, the private rented (B-T-L) sector accounts for 16.3% of households in the town.  The Government want to assist people living in these properties and help the economy by encouraging the provision of good quality homes, in a housing sector that has grown due to economic forces, pushing home ownership out of the reach of more and more people. Interestingly, when we look at the 1981 figures for homeownership, a different story is told. 

59.78% Aylesbury people owned their own home in 1981
28.54% Aylesbury people rented from the Council or Housing Association in 1981
 and 11.68% Aylesbury rented from a Private Landlord     

The significance of a suitable housing policy is vital to ensure suitable economic activity and create a vibrant place people want to live in. With the population of the Aylesbury Vale set to grow to 233,000 by 2037 – it is imperative that Aylesbury Vale District Council and Central Government all work actively together to ensure the residential property market doesn’t hold the area back, by encouraging the building and provision of quality homes for its inhabitants. 

One idea the Government has proclaimed is a variety of measures aimed at encouraging the Build-to-Rent (B-T-R) sector (instead of the B-T-L sector). These include allowing local authorities to proactively plan for B-T-R schemes, and making it simpler for B-T-R developers to offer inexpensive private rented homes. 

To do this, the government will invent a distinct affordable housing class for B-T-R, called ‘Affordable Private Rent’, which will oblige new homes builders to provide at least 1 in 5 of a new home development at a 20% discount on open-market rents and three year tenancies for tenants. In return, the new homebuilders will get better planning assurances.  

Private landlords will not be expected to offer discounts, nor offer 3-year tenancies – but it is something Aylesbury landlords need to be aware of as there will be greater competition for tenants. 

Over the last ten years, home ownership has not been a primary goal for young adults as the world has changed. These youngsters expect ‘on demand’ services from click and collect, Amazon and TV with the likes of Netflix. Many Aylesbury youngsters see that renting more than meets their accommodation needs - it combines the freedom from a lifetime of property maintenance and financial obligations, making it an attractive lifestyle option.

Private rented housing in Aylesbury and Aylesbury Vale, be it B-T-L or B-T-R, will continue to play a very positive role.