Runcorn Property News
  • Blog
  • About
  • Contact
Facebook Twitter
Runcorn Property News
  • Blog
  • About
  • Contact
Runcorn Property News
Home » £13m a year black hole in the Runcorn Property Market – Is Buy to Let Immoral? (Part 2)
Runcorn Property News

£13m a year black hole in the Runcorn Property Market – Is Buy to Let Immoral? (Part 2)

Helen PassBy Helen PassJanuary 26, 2017Updated:June 30, 2018No Comments4 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email

An Englishman’s Home is His Castle as Maggie Thatcher lauded – everyone should own their own home. In 1971, around 50% of people owned their own home and, as the baby-boomers got better jobs and pay, that proportion of homeowners rose to 69% by 2001. Homeownership was here to stay as many baby boomers assumed it’s very much a cultural thing here in Britain to own your own home.

But on the back of TV programmes like Homes Under the Hammer, these same baby boomers started to jump on the band wagon of Runcorn buy to let properties as an investment. Runcorn first time buyers were in competition with Runcorn landlords to buy these smaller starter homes … pushing house prices up in the 2000’s (as mentioned in Part One) beyond the reach of first time buyers. Alas, it is not as simple as that. Many factors come into play, such as economics, the banks and government policy. But are Runcorn landlords fanning the flames of the Runcorn housing crisis bonfire?

I believe that the landlords of the 2,441 Runcorn rental properties are not exploitive and are in fact, making many positive contributions to Runcorn and the people of Runcorn. Like I have said before, Runcorn (and the rest of the UK) isn’t building enough properties to keep up the demand; with high birth rate, job mobility, growing population and longer life expectancy.

According to the Barker Review, for the UK to standstill and meet current demand, the country needs to be building 8.7 new households each and every year for every 1,000 households already built. Nationally, we are currently running at 5.07 per thousand and in the early part of this decade were running at 4.1 to 4.3 per thousand.

It doesn’t sound a lot of difference, so let us look at what this means for Runcorn …

For Runcorn to meet its obligation on the building of new homes, Runcorn would need to build 229 households each year. Yet, we are missing that figure by around 96 households a year.

For the Government to buy the land and build those additional 96 households, it would need to spend £13,502,974 a year in Runcorn alone. Add up all the additional households required over the whole of the UK and the Government would need to spend £23.31bn each year … the Country hasn’t got that sort of money!

With these problems, it is the property developers who are buying the old run-down houses and office blocks which are deemed uninhabitable by the local authority, and turning them into new attractive homes to either be rented privately to Runcorn families or Runcorn people who need council housing because the local authority hasn’t got enough properties to go around.

The bottom line is that, as the population grows, there aren’t enough properties being built for everyone to have a roof over their head. Rogue landlords need to be put out of business, whilst tenants should expect a more regulated rental market, with greater security for tenants, where they can rely on good landlords providing them high standards from their safe and modernised home. As in Europe, where most people rent rather than buy, it doesn’t matter who owns the house – all people want is a clean, decent roof over their head at a reasonable rent.

So only you, the reader, can decide if buy to let is immoral, but first let me ask this question – if the private buy to let landlords had not taken up the slack and provided a roof over these people’s heads over the last decade .. where would these tenants be living now? ….. because the alternative doesn’t even bear thinking about!

If you’re interested in investing or have already invested in the Runcorn property market and want to discuss maximising your investments, pop in for a coffee at 60A High Street, Runcorn, WA7 1AW or visit our website www.homesmartlettings.com

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
Previous ArticleRuncorn’s private renting set to hit 3,442 households by 2021 – Is Buy to Let immoral? (Part 1)
Next Article This week’s buy to let deal in Runcorn, 70-72 Church Street, 8% gross yield
Helen Pass
  • Website

Helen has been a landlord for over 15 years, and together, with John has built up a substantial property portfolio. Helen loves to keep on top of current legislation by attending training courses and lettings events on a regular basis. John and Helen have 5 children ranging in age from teenagers to toddlers, so in the little spare time Helen gets, she enjoys long walks in the country and holidays.

Related Posts

Top Tips for Successful Property Inspections

July 5, 2022

Plastic Free July: How Runcorn Residents Can Help the Planet

July 4, 2022

Don’t Try This at Home: Three of the Dumbest TikTok DIY Hacks

June 28, 2022

No Comments

  1. S. Hodnett on March 13, 2017 6:51 pm

    A very interesting article giving good information regarding both sides to the issue of house buying in Runcorn.

    Reply

Leave A Reply Cancel Reply

Follow us
  • Facebook
  • Twitter
Recent Posts
  • Top Tips for Successful Property Inspections
  • Plastic Free July: How Runcorn Residents Can Help the Planet
  • Don’t Try This at Home: Three of the Dumbest TikTok DIY Hacks
  • How to Ensure the Best Tenants in Runcorn Move into Your Property
  • Bright Ideas: The Best New Household Gadgets
Recent Comments
  • alan forward on Stamp Duty Changes – A big Step forward for the Runcorn property market
  • carolyn on Runcorn Property Market and Mysterious Politics of the General Election
  • S. Hodnett on £13m a year black hole in the Runcorn Property Market – Is Buy to Let Immoral? (Part 2)
  • Martin Seib on Private Renting set to grow by 1,000 Runcorn households by 2025
Archives
About
About

This blog follows the ever-changing property market in Runcorn and surrounding areas. From buying or selling, letting or investing, you will find a wealth of information that will help you in your decision-making process.

We're social. Follow us on:

  • Facebook
  • Twitter
  • LinkedIn
Popular Posts

Stamp Duty Changes – A big Step forward for the Runcorn property market

July 8, 2020

85.3% of Runcorn Properties have 3 or more bedrooms – Problem or Opportunity?

August 18, 2016

8,000 People Live In Every Square Mile Of Runcorn – Is Runcorn Over Crowded?

August 25, 2016

© Runcorn Property News 2019. All Rights Reserved

  • Terms of Use
  • Privacy Policy
  • Cookie Policy

Type above and press Enter to search. Press Esc to cancel.