By Steve Roulstone
Last year I wrote a Blog about why somebody should choose a Property Franchise when looking for a new future in Franchising. This week some figures have been released as a result of the Communities and Local Government English Housing Survey for 2009-2010, which confirm if ever there was a right time, that time is now!
Increase in Rental properties.
The figures released based upon a survey of a total of 21.5 million properties in England, has shown what can only be described as a mammoth increase in the Private Rental sector over the preceding twelve months, which even outstripped the increase at the start of the housing sales slump in 2008 of 1.2%. This time the increase is 1.4% and this is confirmed by recent news items, suggesting that demand could see this increase outstripped during this current year. Indeed figures are being discussed which would give another record increase approaching an additional 2% possible this (current trading) year.
Steady growth.
The overall percentage in the private rental sector as shown in this survey is now 15.6% (Current figures being discussed are 17%) with the social rental sector now falling to 17%, it clearly looks as if private rented property could overtake the social sector to become the largest sector, within the next twelve months. In big round numbers, this is an increase of nearly 300,000 properties in one year, which is all additional potential business for Letting Agents, at a time when more and more self managed Landlords are also turning to the Industry.
Effect on local markets.
So how does this affect local markets, well let’s look at Birmingham, who confirmed 420000 properties within the City Council boundary paying Council Tax last year. 1.4% growth would represent a potential of up to 6000 additional properties, which, at £1000 average earnings per year as a conservative estimate, would produce potentially £6 million pounds additional turnover for the area. Even in a quarter of the City, £1.5 million additional turnover, should encourage anybody able to make a start in Franchising, that the market is buoyant and still growing.
Continued growth.
But it is not just the current growth which is encouraging, for the market has shown growth of over half of one percent year on year for the last decade. What is happening now is a clear sign that this growth is constant and growing. The icing on the cake for Letting Agencies is that the number of potential Tenants continues to grow. This has also been widely reported in the press, and again in a period after this latest survey. So never has there been a better time to become a Letting Agent so you will have to excuse me, whilst I go and make sure there is a clear path to my door!!
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