PRIVATE RENTED SECTOR New All-Party Parliamentary Group for Private Rented Sector
Forty-eight Members of Parliament and Peers from across the political parties
have established a new All-Party Parliamentary Group for the Private Rented Sector. The Group will aim to inform policy better towards private rented housing at a time when changes to housing benefit, regulatory issues and the increasing demands being placed on the sector are highlighting the growing significance of private rented housing. Conservative MP for Poole,
Robert Syms who has led on forming it said, “With waiting lists for social housing continuing to increase and home ownership remaining difficult for many, private rented accommodation is becoming increasingly important to meeting the UK’s housing needs. “The establishment of this All Party Group will enable MPs
HOUSE PRICES & SALES Down, down, down
Latest analysis by Rightmove shows that 70 per cent of properties that were newly marketed in the first six months of 2011 are still up for sale, a sobering reflection of current market conditions. This is hardly surprising, says Rightmove, given that lenders are still only approving around half the number of mortgages they were before the credit crunch happened.
As a consequence, sellers
have to have sufficient equity to be able to price aggressively to attract scarce buyers and still raise a large enough deposit to fund their next move. This is likely to contribute to new seller numbers remaining subdued. The current weekly run rate of new listings is 27,062, which
is 12 per cent lower than the 30,877 recorded in July 2010. Sellers with sufficient equity are at a considerable advantage in being able, if they are willing, to undercut the competition and then be in a strong position to be able to negotiate a similar reduction if they are purchasing again. They also benefit by being able to put down enough of a deposit to get the most attractive mortgage rates. Miles Shipside (pictured)
says, “Many equity-poor aspiring sellers will be trapped in their current homes, either unable to come to market or stuck on the market and unable to reduce to a price that will attract buyer interest. Those that are equity-rich have an opportunity to increase their chances of success by launching to the market at a price below their over-priced and stale competition.” The current level of retail
price inflation is reducing property prices in real terms, which will eventually help frustrated would-be sellers
and Peers from all parties to engage directly with landlords and tenants to consider issues of importance and where appropriate, agree on recommendations for action by government.” Alan Ward, Chairman of the
Residential Landlords Association who will provide the secretariat to the Group said, “The RLA wholeheartedly supports the decision to establish a cross party group for the private rented sector. This will enable landlords, tenants and other stakeholders to engage
in a constructive dialogue with Parliament on how to meet increasing demand whilst ensuring high standards of housing and management. “The RLA looks forward to playing its part in supporting the Group to meet its aims, objectives and programme.”
who are currently unwilling or unable to price to sell.
Shipside summarises, “While
property has a good long-term record as a hedge against inflation, in the short term
property prices have become significantly cheaper in real terms as the cost of living has gone up, while the cost of housing has stood still or gone backwards.”
PROPERTYdrum AUGUST 2011 11
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