Its Don here MD Go Direct Lettings Franchise team.
Will Theresa May form a working government, or will Jeremy Corbyn cause a further upset. Whichever way the cards finally fall how will it affect UK housing? We still face and will continue to face, even after the Brexit deal is done, Hard or Soft, a shortage of housing here at home. We simply can’t build enough as it is.
Whilst it is clear “we all need somewhere to live” The above is a fact that all parties know and none will admit.
In the first place, Hard or Soft is media driven rhetoric, because the negotiating teams haven’t even started fully yet, they met on Monday 19th June 2017, delayed a little due to the election, and how can you go to the negotiating table with your hand already exposed. It’s like going to buy a car and dialling ahead, saying “I’ll pay top dollar”!
They need to keep the cards close to their chest so as to negotiate from a stronger position, not some watered-down approach, which to some degree has already accepted some defeat. No one negotiates you up! Basic stuff really.
If the UK want to control the borders and thus immigration and in turn our infrastructure, then unless the EU agree to drop the demand for free movement of people, which they won’t, as that is the basic principal it is built on, or we agree to their demand free movement, which will in effect make the whole exercise a waste of time, then the future is as ‘clear as mud’ isn’t it?
Another couple of real unavoidable issues, regardless of who gets the top job, is A) The massive skills shortage we have. The UK hasn’t been investing in apprenticeships for the last 25 years, and the truth is, even with European recruited support, we don’t have enough skilled tradesman to build the 300.000 properties a year needed to support the indigenous needs.
B) There is also a brown field land shortage, so unless we start to build on Green field, such as local or national parks and gardens losing our countryside, we cannot achieve that either, It is as simple as that, it can’t be done, we cannot build ourselves out of the 1.9 million homes already short and the additional 300.000 per year to keep up with current needs and why the politicians don’t just admit it and recognise the ongoing benefits of a successful PRS, which has and continue to underpin the housing market over the last 10/15 years, raising from 7% in the late 90’s to nearly 20% today, is very confusing, if not annoying.
But then no one likes to admit defeat!
Let’s look at the PRS (Private Rental Sector) and the constant attacks it has faced over, just the last couple of years.
(A) The introduction of the additional 3% SDLT, how does that help stimulate a much-needed asset?
(B) The introduction of Sect 24. Loss of mortgage tax relief on second property.
(C) The loss and reduction in capital right off for F&F.
(D) The further difficulties imposed on possession
(E) The rent payments direct to tenants.
And so on, there have been many more.
Consecutive governments have been trying to encourage institutional investments for many years into Build for Rent and although some heavily subsidised construction groups are making an effort, under the current and above restrictions mentioned, it will never have the desired impact.
Yes of course, as they say, every little help, but the truth is the only way forward, short of building on your local park, if you can find enough builders and materials to do so, Oh I forgot, did I mention there is a three-month waiting list for bricks? Then we must continue to support the PRS and help its development, not hinder it and that means of course all the supporting professions such as Agents.
With every downside there is an upside and that’s where we come in, assisting our clients in their current management needs and helping them build and manage their ongoing portfolios.
There are 5.5 million landlord votes here and maybe all parties would appreciate this support, if so that street goes both ways.
They say there is no one as blind as he who won’t see, perhaps it’s time for the PRS to offer a white stick? At least then if they still can’t find a way through all this, we will have something to beat them about the head with!
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