The Plymouth Property Blog
This blog follows the buy-to-let market in Plymouth. You'll find properties on here that I think will make good Buy to Let investments. You'll also find tips, guidance, and analysis that relates specifically to the Plymouth area. I operate Donnington Stuart in Stoke Village, in Plymouth. I myself have a large portfolio properties mainly based in Plymouth. If you're thinking of buying a Buy to Let property in Plymouth, I would be more than happy to offer a second opinion.

Plymouth House Market Crisis as New House Building slumps by 44%

One of the key factors that determine the price of anything is the demand and supply of the item that is being bought and sold. When it comes to property, demand can change overnight, but it takes years and years to build new properties, thus increasing the supply.
The Conservatives have pledged to build over 1 million homes by 2020. I am of the opinion that as a country, irrespective of which party, we have not built enough homes for decades, and if the gap between the number of households forming and the number of new homes being built continues to grow, we are in danger of not being able to house our children or grand children. I believe the country is past the time for another grand statement of ambition by another Housing Minister. Surely it’s right to give normal Plymouth families back the hope of a secure home, be that rented or owned? As a city, we need to exert pressure on our local MP Oliver Colville, so they can make sure Westminster is held accountable, to ensure there is a comprehensive plan, with enough investment, that can actually get these homes built.

To give you an idea of the sorts of numbers we are talking about, in the Plymouth City Council area in 2005, 960 properties were built. In 2007 that number peaked at 1,340. By 2014, that figure had dropped by a massive 44.03% to 750 properties built.

The outcome of too few homes being built in Plymouth means the working people of the city are being priced out of buying their first home and renters are not getting the quality they deserve for their money. The local authority isn’t building the estates they were after the war and housing associations are having their budgets tightened year on year, meaning they have less money to spend on building new properties. I know of many Plymouth youngsters, who are living with their parents for longer because they cannot afford to get onto the housing ladder and growing families are unable to buy the bigger homes they need.

I talk to many Plymouth business people and they tell me they need a flexible and mobile workforce, but the high cost of moving home and lack of decent and affordable housing are barriers to attracting and retaining employees. Furthermore, building new homes is a powerful source of growth, creating jobs across the county and supporting hundreds of Plymouth businesses. It is true that landlords have taken up the mantle and over the last 15 years have bought a large number of properties. The Government need to be thankful to all those Plymouth landlords, who own the 20,873 rental properties in the city. Most local landlords only have a handful of rented properties (to aid their retirement), and without them, I honestly don’t know who would house all the extra people in Plymouth!
Moving forward, those Plymouth landlords have many pitfalls, both in the short term and medium term. For instance, were you aware that the rules of changes for new tenancies from the 1st October 2015 (with some imposing penalties including loosing the right to require the tenant to vacate, if they are done incorrectly) or in the medium term, the planned change in the way buy to let’s are taxed?

More than ever, the days of buying any old property in Plymouth and you would be set for life are gone. Now, it’s all about ensuring you stay the right side of the law, buying the right property (and that might mean even selling some to buy others), so you build the right portfolio for you as a landlord. One source of info on all of these issues, where you will find other articles similar to this on the Plymouth property market, is the Plymouth Property Blog www.plymouthpropertyinsight.co.uk
Share on Google Plus

About Unknown

This is a short description in the author block about the author. You edit it by entering text in the "Biographical Info" field in the user admin panel.
    Blogger Comment

0 comments:

Post a Comment