£9m a year black hole in the Evesham property market – Is Buy to Let Immoral? (Part 2)

‘An Englishman’s home is his castle’ as Maggie Thatcher lauded – everyone should own their own home. In 1971, around 50% of people owned their own home and, as the baby-boomers got better jobs and pay, that proportion of homeowners rose to 69% by 2001. Homeownership was here to stay as many baby boomers assumed it’s very much a cultural thing here in Britain to own your own home.

But on the back of TV programmes like Homes Under the Hammer, these same baby boomers started to jump on the band wagon of Evesham buy to let properties as an investment. Evesham first time buyers were in competition with Evesham landlords to buy these smaller starter homes … pushing house prices up in the 2000’s beyond the reach of first time buyers. Alas, it is not as simple as that. Many factors come into play, such as economics, the banks and government policy. But are Evesham landlords fanning the flames of an Evesham housing crisis bonfire?

I believe that the landlords of the 1,612 Evesham rental properties are not exploitative and are in fact, making many positive contributions to Evesham and the people of Evesham. As I have said before, Evesham (and the rest of the UK) isn’t building enough properties to keep up with demand; with high birth rate, job mobility, growing population and longer life expectancy.

According to the Barker Review, for the UK to standstill and meet current demand, the country needs to be building 8.7 new households each and every year for every 1,000 households already built. Nationally, we are currently running at 5.07 per thousand and in the early part of this decade were running at 4.1 to 4.3 per thousand.

If the Government were to buy the land and build the houses required, it would need to spend £9,698,545 a year in Evesham alone. Add up all the additional households required over the whole of the UK and it would cost approximately £23.31bn (each year).

The bottom line is that, as the population grows, there aren’t enough properties being built for everyone to have a roof over their head. Rogue landlords need to be put out of business, whilst tenants should expect a more regulated rental market, with greater security for tenants, where they can rely on good landlords providing them high standards from their safe and modernised home. As in Europe, where most people rent rather than buy, it doesn’t matter who owns the house – all people want is a clean, decent roof over their head at a reasonable rent.

So only you, the reader, can decide if buy to let is immoral, but first let me ask this question – if the private buy to let landlords had not taken up the slack and provided a roof over these peoples’ heads over the last decade… where would these tenants be living now? ….. because the alternative doesn’t even bear thinking about!

Leave a Reply

Your email address will not be published. Required fields are marked *