Private Renting set to grow by 2,400 households in Basingstoke by 2025

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I had a very interesting conversation with a developer this week, whilst we were talking about potential sales and rental values for a new development in Basingstoke.

(I am sure you are aware, Martin & Co are always happy to look at any potential buy to let purchase in Basingstoke that you may be considering, and advise on suitability and potential rental value. We don't charge for this service, even if you are not a currently a customer).

We were talking about the Basingstoke Property Market and this developer brought up the subject of a report he had read from the Royal Institution of Chartered Surveyors (RICS) and PricewaterhouseCoopers (PwC) that stated almost 1.8m new rental homes are needed by 2025 to keep up with current demand from tenants. He wanted to know what this meant for Basingstoke.

Some commentators were saying last Winter that buy to let market was likely to slow down, due in part to the new stamp duty changes and in part due to the mortgage tax relief changes. Others even said 500,000 rental properties would flood the market nationally in the 12 months after the new Stamp Duty rules came into force on the 1st April 2016 as landlords left the rental market. Well, all I can say is, I wish all the landlords of those half a million properties would hurry up and put them on the market – because I have plenty of other potential landlords wanting to buy them!

Back to the matter in hand. If the RICS and PwC are indeed correct, what does this mean for Basingstoke? The fact is, as a country, we are facing a precarious rental shortage and need to get Basingstoke building in a way that benefits a cross-section of Basingstoke society, not just the fortunate few. I (and many in the property industry) are calling on the Prime Minister to drop the higher stamp duty tax on buy to let purchases to ease the pressure on the rental market.

Of the 44,400 households in Basingstoke, currently 13,000 tenants live in 5,400 private rented properties. If we apportion those 1.8m households equally around the Country, that means in nine years’ time, the number of rental properties in Basingstoke needs to rise by 2,400 (i.e. 42.8%), taking the total number of rented properties in the city to 7,800.
 
 
That means Basingstoke landlords need to buy around 300 properties a year between now and 2025 to meet that demand – because according to my calculations, an additional 5,600 people will want to live in all those 'additional' Basingstoke rental properties – so why is the government penalising landlords?
 
Thankfully the new housing minister, Gavin Barwell, is saying "we need to build more homes for every single type of person needing a home and not focus on one single tenure". The private rented sector became a target under David Cameron's administration, and with increasingly unaffordable Basingstoke house prices, the majority of new Basingstoke households will be relying on the rental sector in the future to house them. I can only say Westminster must put in place the measures that will allow the rental sector to flourish. Any restrictions on the supply of rental property will push up rents (bad news for tenants), thus side-lining those members of Basingstoke society who are already struggling. Let's hope this new Government continues to see and value the contribution that landlords give to the country as a whole.
 
 
 
Location: Basingstoke, UK

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