Is this the end for first time buyers in Bexley Borough?

People are always going to need a roof over their heads, so having somewhere to live will never go out of fashion.

Local residents aged 22 to 30 have a choice about their type of roof. They can rent from the council, they can rent from a private landlord, or they can get a mortgage and buy a house.

In the 1970s, 80s and 90s, people were expected to go without luxuries for two years and save while living at home or renting a cheap two-up two-down, and then to buy their first house. More recently, fewer younger adults have been buying. Instead, they are choosing to rent, mainly from private landlords (councils have been selling off housing under right-to-buy schemes). The numbers are truly staggering... and I want to share them with you.

20 years ago, Bexley Borough was a different place. There were 86,373 households and 65,276 were owner occupied. Today, after a lot of building in the area, the total number of households has increased by 32.5% to 114,450. What surprises me is that the number of owner-occupiers has increased to 82,464 (proportionately, however, it is only 72% compared to 75.5% twenty years ago).

However, the rented sector is truly fascinating. Twenty years ago only 4,662 properties were privately rented in Bexley and now there are 13,350, a rise of 8,688.

For Bexleyheath residents in their twenties, housing difficulties have been exacerbated by the local authority selling off council housing. The number of council houses has fallen from 10,244 to 4,325 over the same twenty-year period. Demand for decent rented property remains high, as Cameron’s much-vaunted house-building program is years away and has decades of under-investment to catch up on before it starts to impact on demand. Even with buy-to-let tax rule changes over the coming few years (which will see the maximum tax relief available to landlords drop from 45% to 20%), private landlords still have an important role to play in housing Bexleyheath residents. Those who educate themselves and treat their investments as a business will survive and prosper.

The best way Bexley Borough landlords can protect their property-derived income (and mitigate the effects of the tax rises) is to keep the homes they let out in Grade A condition. Especially over the last three or four years, I have found that tenants have ever-growing demands from their rental property, and that many are prepared to pay “top dollar” for houses and apartments that meet their high expectations.

I am frequently asked how the Stamp Duty changes for landlords coming in April will impact on the market. My view is that as supply (the number of properties for sale) is low, it’s hard to imagine that Bexley Borough property values will see much impact. However, my modest prediction is that the proportion of owner occupiers should increase slightly compared to buy-to-let landlords in the coming decade as the housing market should return to balance.

Always remember that letting property is a business, so all private landlords should seek the advice, opinion and commentary of property professionals.

For more in-depth thoughts on the Bexley Borough Property Market, please visit my blog – www.bexleyproperty.co.uk – for a library of articles like this or feel free to call our office on 01322 559955 or even pop in for a chat; our office is located in the heart of Bexley Village (next to the King’s Head Public House).