That number surprised you didn’t it? With the General
Election done, I thought it time to reflect on renting in the manifestos and party-political
broadcasts and ask why?
As the best way to tell the future is to look at to the
past, so we decided to look at the number of people who rented a century ago
(1920’s), and surprisingly 76% of people rented their home in the UK (as renting
then was considered the norm). Yet in the latter part of the 1920’s, builders
of the suburban housing estates with their bay fronted semis started to sell
the dream of home ownership to smart renters.
Up until the mid 1920’s, the mortgage had been seen as a
millstone around your neck. Now, due to some clever marketing by those same
builders, it was started to be seen as a shrewd long-term investment to buy
your own home with a mortgage. It fuelled the ambitions and goals of the up and
coming well-to-do working class who reclassed themselves as lower-middle class.
Meanwhile, the Government encouraged (through tax breaks) people to save in
Building Societies whom in turn lent the money to these up and coming new homeowners
thorough mortgages.
Roll the clock
forward to the decade of the young Elvis, Chuck Berry, and Bill Haley (1950’s)
and still 72% of Brits rented their home. Homeownership had boomed in the
preceding 30 years, yet so had council house building. Then, as we entered the 1960’s and
1970’s homeownership started to grow at a higher rate than council housing.
The
rate of homeownership started to drop substantially after the mid 1990’s, and now
we roll the clock forward to
today, there is no stigma at all to renting ... everyone is doing it. In fact,
of the…
163,873 residents of Warrington, 43,468 of you rent your house
from either the council, housing
association or private landlords - meaning 26.5% of Warrington people are
tenants. Yet read the Daily Mail, and you would think the idea of homeownership is deeply
embedded in the British soul?
118,326 Warrington
people live in an owner-occupied property
So, we have a paradox - homeowners or renters? The reason I suggest
this, is, I noticed on the run up to the Election that housing was used at the
General Election as way to get votes. This is nothing new, as all parties have always
used housing to get votes, although previously it was about which party would build
more council houses in the 1950’s through to council Right to Buy with Thatcher
(and everyone since) - running
election campaigns promising everybody their own home in one way or another.
Yet,
did you notice at this election something changed? The parties weren’t talking
so much about increasing homeownership but about protecting the tenant. It seems
the link between homeownership as the main goal of British life is starting to
change
as we are slowly turning to a
more European way of living. Renting is here to stay in Warrington
and incrementally growing year on year. You see, in Britain there is
no property tax based on ownership, which many other western countries
have. Instead Council Tax is paid by the occupier of the home
(meaning the tenant pays - not necessarily the owner).
Both parties wanted to end no-fault evictions (which is a
good thing), yet Labour went further and mentioned rent controls in their
manifesto. As I have mentioned before in other articles on the Warrington
property market, rents since 2008 (even in central London) have not kept up
with inflation - so again was that another headline to grab votes/election
bribe? The fact is the majority of new British households formed since the
Millennium can now expect to rent from a private landlord for life - therefore
the parties focus on this important demographic.
Yet
even with the new mortgage relief tax rules for landlords and the 200+ of
legislation that govern the private rental sector, buy to let is still a viable
investment option for most investors in Warrington. There has never been a
better time to purchase buy to let property in Warrington … but buy wisely.
Gone are the days when you would make a profit on anything with four walls and
a roof. Most importantly do your homework, take advice and consider your
options.
Email me on manoj@hamletwarrington.co.uk or call on 01925 235 338 – we are based on the Warrington Business Park, Long Lane, WA2 8TX. There is plenty of free parking and the kettle is always on.
Don't forget to visit the links below to view back dated deals and Warrington Property News.
CLICK HERE TO FIND OUT HOW MUCH YOUR WARRINGTON HOME IS WORTH FOR FREE
Hamlet Homes Warrington, your local Estate Agent
Follow my Warrington Property Market Blog
Hamlet Homes Warrington LinkedIn Page
Hamlet Homes Estate Agents Warrington Facebook Page
Hamlet Homes Estate Agents Warrington Twitter Page
No comments:
Post a Comment