Housing Minister ‘promoted’ to full Cabinet status in recent reshuffle
- 2nd February 2018
- Property Tips
Prime Minister shows intention in her quest to solve UK housing crisis
Dominic Raab has been appointed as housing minister and will work alongside Sajid Javid as the newly re-appointed Secretary of State in a department renamed as the Ministry for Housing, Communities and Local Government.
Most of the cut and thrust of party politics regarding housing is about the rate of house building and that is certainly a fundamental issue for the new Minister to get to grips with. However there is also recognition that the private rented sector is part of the solution to the housing crisis, not part of the problem - a momentum illustrated by the creation of a working party on long term tenancies.
ludlowthompson is a pioneer in this area and has consistently backed long term tenancies, with our average tenancy length now sitting at 26 months. Our research shows long term tenancies are seen as a ‘win-win’ for both landlords and renters. Landlords are able to use long-term tenancies to maintain occupancy when demand is seasonally low, and they provide greater financial planning through stable, steady income and a longer-term picture of future rental income. On the other side, Long-term tenancies provide prospective renters stability in their financial planning and give them the opportunity to make their property a home, and embed their lifestyle in a local area.
A healthy supply of private rented accommodation also helps to drive labour mobility, as it provides the flexibility that ambitious people need as they pursue their careers, including young people who are still descending on London from overseas. This mobility is very good news for economic growth.
On the supply side many private landlords have had to review their investments due to the tax changes but buy-to-let is still very much an attractive proposition for the medium to long term.
Stephen Ludlow, Chairman of ludlowthompson, comments: “The UK economy has proved very resilient and its population continues to grow, particularly in London, so demand for accommodation shows no sign of slacking. These factors combined should continue to ensure very healthy returns for the long term property investor looking for total returns."
“Let's remind ourselves - historical evidence suggests that population growth leads to rental growth and ultimately capital growth, as the supply of property wrestles to keep up with demand.”
“There has been a slight cooling in price growth, in part due to Brexit uncertainty, but rents continue to perform well.”
The UK economy has proved very resilient and its population continues to grow, particularly in London, so demand for accommodation shows no sign of slacking.
FREE & INSTANT PROPERTY VALUATION
IN JUST 60 SECONDS