Buy to Let Sector Under Threat
You might remember me commenting the other week on the fact that there are now over 500,000 empty properties across the UK which are currently lying vacant due to councils not wanting to lose their government funds.
Well, the housing crisis just keeps on getting better and better…
According to new research by the Association of Residential Letting Agents, 59% of property landlords have now got more tenants than they have got property lets!
Demand is literally outstripping their supplies, meaning on top of the growing social housing list, there is now a growing list of tenants who can not find property lets to lease.
Now, you have probably already guessed where I am going with this i.e. why can’t we property landlords utilise these 500,000 empty properties to fulfil this shortfall and prevent a further housing shortage in the buy to let sector?
Well, here is where things get interesting…
Instead of utilising these 500,000 empty properties immediately – most of which are in a decent condition – the ARLA have instead asked the government to supply property investors will incentives to invest, refurbish and insulate older properties.
Now of course this will include some of the 500,000 properties mentioned above, but my real issue with this situation is: why would the government do that when local councils are already against bringing vacant properties up to standard in the first place?
It is a complete catch 22! Until councils relinquish their reservations to upgrade these existing empty properties, it is incredible unlikely that the government will have any success incentivising property investors!
Anyways… it is great to know that there is plenty of demand for rental properties from tenants with the average vacant property let only remaining empty for 3.6 weeks. But until the government gets their act together and makes councils utilise these 500,000 empty properties, times are going to get tougher.
Wendy xx
