Blog

The idea of a ‘property owning democracy’ has been a popular one with British governments since the Housing Act was passed in 1980. The concept has an even longer history in the USA, stretching back to Roosevelt’s New Deal in response to the Great Depression.

There has been a general acceptance of widespread home ownership as a positive and empowering model, but is this actually the case? In light of the sub-prime crisis and families trapped by negative equity, questions are being asked about the most suitable ways to meet housing needs.

When did home ownership become ‘the norm’ in the UK?

I found myself asking this question in response to a Chartered Institute of Housing report, released at the weekend, predicting that Britain’s “golden age of home ownership” is coming to an end. Needing deposits in excess of £40,000 in the more expensive parts of the country, a generation of young people faces a lifetime of renting rather than buying.

And so the silly season is upon us. With politicians on holiday, the High Court in summer recess and much of the property industry seemingly ensconced in the south of France, a rash of ridiculous stories are taking over the (much thinner) newspapers.

Among the revelations of the last few days is news that caterpillars dance to evade predators, a ‘sea monster’ has been spotted off the Devon coast and Jesus has appeared in a crop circle near the M4.

The proposed end to lifetime council tenancies, as announced this week by David Cameron (and ably defended by housing minister Grant Shapps on Wednesday’s The Today Programme), is sure to divide opinion. But, if approved, it will also undoubtedly present an opportunity.

The stated aims of these proposals are to boost social mobility while at the same time ensuring only those that truly need housing assistance – ie: where they can’t afford private sector accommodation – are granted council properties.

Since the start of this blog, articles within the national business and property trade press have looked at the advantages that exist for institutions willing to invest in the private rented sector (PRS). But recent news has highlighted how essential the development of this sector is for the man-on-the-street.

According to the Association of Residential Letting Agents (ARLA), the dearth of available rental properties is worsening. 70 per cent of ARLA member offices have more tenants than available properties, up from 59% last quarter and just 24% in September 2009.

My recent blogs about the impact of Google Maps’ property search application on property and relocation agents have also had another common theme; added value.

Adding and demonstrating value are part and parcel of every business, but could landlords be doing more? Are there opportunities to add value – and charge more – that are going begging? In an industry where the yield is a key factor, maximising revenue and hence returns is an absolute priority.

I wrote last week about Google’s launch of a property search service within its Google Maps application, and the potential impact this would have on the UK’s estate agent community. Broadly speaking, agents will more than ever before be required to demonstrate the value they provide for their fee.

One area that I didn’t discuss, however, was the relocation sector and the impact, if any, that the new property search will have on relocating assignees and agents acting on their behalf.

By Roger Hollis, managing director, Roomservice by CORT

Amid all the hoopla surrounding England’s untimely demise at the World Cup and the fallout from George Osborne’s budget, the latest news from Google slipped out with barely a mention in the press.

With an England win setting up a World Cup second-round tie with old rivals Germany, twin victories over Australia at rugby and cricket and the longest-ever tennis match played out at Wimbledon, this week has been sportier than most.

All have been very entertaining, but will ultimately pale into insignificance compared to Tuesday’s emergency budget, George Osborne’s first as Chancellor of the Exchequer.

Listening to Mervyn King’s appearance in front of the Treasury Select Committee on Tuesday, complete with warnings about the fragility of the ‘nascent recovery’ and the possible reintroduction of quantitative easing, I started thinking about the next generation’s relationship with money.