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 Cambridge 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 Daniel
Zeichner, 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 Cambridge City
Council area, in 2006, 750 properties were built. In 2010 that figure dropped
to 300. However, whilst the number of new homes being built in the council area
has increased ... in 2013 it was 480 and in 2014, it had increased to 1300
properties built ... we need double that amount to even keep up with the
population growth of 1,512 people per year into the area, let alone alleviate
the chronic housing shortage for the existing locals.
The outcome of too few homes being built in Cambridge 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 Cambridge 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 Cambridge 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 Cambridge 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 Cambridge landlords, who own the 13,862 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 Cambridge!
Moving forward, those Cambridge 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 Cambridge
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 Cambridge property market, is the CambridgeProperty Blog
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