Page 9 - Redbrik: Property and marketing Autumn/Winter 2019

FEATURE
In Chesterfield, the Waterside scheme to the immediate north of the
town centre is a £320m mixed-use regeneration programme that will provide a thriving and successful new part of the town centre. This will create a new community with 1,500 modern houses and apartments, as well as new employment opportunities, shops, cafes and bars around the new canal basin and a public square.
Another thing you can expect to see
in the 2020s is the further rise of private rental sector (PRS). Knight Frank’s latest tenant survey report expects investment in the UK’s PRS will soar to £75 billion
by 2025, with an additional 560,000 households expected to be in private rented accommodation by 2023.
The report showed an interesting demographic shift for the PRS too. Young professionals, aged 25-34, are no longer the most prevalent group – instead, it’s those aged 35-49 that are now dominating this space.
Within this middle-aged bracket, those at the higher end of the age range are less likely to receive the best mortgage
rates too. Therefore they are more likely to remain in rented accommodation for years to come, fuelling the sector’s continued growth.
So despite the legislation and
taxation changes for landlords, the property market remains an excellent investment, especially against low-level interest rates. Many of the legislative changes designed to help the tenants and reduce their costs, have actually had the opposite effect and resulted
in rents rising, giving better yields to landlords.
Another reason for the rise in older tenants is downsizers releasing cash from their homes. Data from Let Alliance showed 12 per cent of all tenants
who moved into new privately rented homes since the beginning of 2018, were previously living in the owner- occupied sector looking to release equity. Unsurprisingly, this percentage is higher for the older tenants, with 36 per cent of 50–60-year-olds and 42 per cent of over 60s previously living in owner- occupation before choosing to free-up capital and have flexibility in where and how they live.
With fewer traditional bungalows, downsizers will look at new styles of lateral living too.
At Redbrik, we are already working with some innovative developers pioneering in this sector. Creating
a fresh breed of larger luxury apartments, as seen at the likes of Whitely Quarters and Ridgemount (S10, Sheffield) and soft-contemporary bungalows such as Jacques Orchid (South Normanton) and St. Mary’s Walk (Chesterfield).
One thing history has shown us is that house prices will continue to grow despite political uncertainty. I have given up speculating on the political system, or what will be the eventual outcome of Brexit. However, it’s clear from the sheer number of people
we are talking to who are looking to move, we are all intent with getting on with our lives.
The next decade promises much excitement, change and opportunity, and I don’t think there has ever been a more exciting time to be involved in property.
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