SPEAKERScorner
PRS dilemma
BriefYourMarket.com is the perfect solution for Estate Agencies enabling them to communicate far more effectively with their clients than ever before.
Key benefits for Estate
Agents:
BriefYourMarket.com is a powerful e-marketing tool, which lets you communicate with all your clients on a truly personal level. In simple terms,
BriefYourMarket.com gives you the power to send Intelligent Newsletters, tailored to the specific interests of your clients.
Most Estate Agencies would like to be more effective with their marketing budget, without spending any more money. With industry figures showing direct mail and advertising achieving an average response rate of just 2%, value for money has become a key issue.
William Jordan, MD of Jordan’s, calls on the Government to support the PRS.
T
[a consistent appearance over all icons] [a consistent appearance over all icons]
[consistent color pallette] [consistent color pallette]
he combined effects of widespread immigration, the lack of low deposit mortgages, recession in the construction sector and constraints on Local Authority construction spend have
30%+30%+
combined to further reduce the availability of affordable housing in the UK. The lowest levels of homebuilding for 80 years have produced a serious shortfall in the supply, in England alone, of one million homes. Fewer than 100,000 homes will be built this year, 40 per cent of the number needed to satisfy rising demand from an estimated 252,000 new households every year between now and 2031. The shortfall for 2009 was equivalent to a city the size of Nottingham. Homebuilding has been in steady decline since the 1960/70s, when more than 300,000 homes were built. This excess of demand over supply has been offset by healthy growth in the PRS which currently provides more than three million homes.
Grave threat Although the rise in CGT introduced in June’s Emergency Budget was not as high as feared, the midyear adjustment means tax calculations for buy to let investors are now more complex. Gains realised up to 22 June 2010 would be taxed at 18 per cent – those after 22 June would be taxed at the higher rate of 28 per cent. These factors present a grave threat to the rental sector. It is
further threatened by the possibility that the buy to let sector may be regulated by the FSA. The fundamental motive that drives private landlord investors to acquire, renovate, maintain and let property is to build up a portfolio that will perform favourably in comparison with investment alternatives. The government’s CGT policy could create a shortage in rental property as potential landlords are discouraged from investing, exacerbating the crisis. Indicators in my business show that rent levels are on the rise,
BriefYourMarket
Unique one-to-one communication
Contact us today to discover how
BriefYourMarket.com can help you and your business ...
infouk@briefyourmarket.com
08450 26 79 79 or
but the rises are mainly due to the shortage of rental properties. Surely, with this huge undersupply of homes and mortgage shortages, the Government’s best course would be to do everything possible to encourage more investors into the sector, not discourage them? ‘Dragon’, Theo Paphitis’s words should ring in George
Osbourne’s ears, “You want me to risk my children’s inheritance on something that shows no signs of making a profit. You must be joking”. Buy-to-let investors will vote with their feet. Far from introducing punitive taxes on home provision sectors, the government should create a fairer and stronger Britain by stimulating the private rental sector. It is vital that there is a concerted focus on the PRS.
The Government needs to implement solutions that will ensure the longterm availability of affordable rental accommodation. This includes treating landlords as businesses within the fiscal regime. It is the only way to ease the housing deficit.
www.propertydrum.com/articles/speakersoct. This feature is online and you can comment. Log on and share your views.
PROPERTYdrum OCTOBER 2010 63
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68