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Why Does It Take 178 Days To Sell A Home In Gravesend?

11 months ago
Why Does It Take 178 Days To Sell A Home In Gravesend?

The average rent for homes coming on the market in the Gravesend
area in 2021 was £1,130 per month, whilst in 2023, it has been

£1,563 per month.

(Gravesend area DA11/12/13).
You can see why people are accusing landlords of "widespread profiteering".
But as always, the devil is in the detail.
This increase in average Gravesend rent is for new tenancies,

not tenancy renewals.

A new tenancy is when a brand-new tenant moves into a home, whilst a renewal is when an
existing tenant renews the lease with their existing landlord.
Government data shows that most landlords are not exploiting the mortgage crisis, with
64% of landlords maintaining and 4% decreasing rents to shield renters from the impact on
renewal of their tenancy agreement, dispelling the notion that they are exploiting the
situation.
Looking at the same Government data, of the landlords setting rents for new tenants, just
under half of landlords (45%) stated they increased the rent compared to the previous
tenancy with the old tenant, whereas a third (35%) kept the rent they charged at the same
level, and surprisingly 1 in 12 (8%) decreased the rent.

Therefore, whilst the average percentage growth in Gravesend for
new tenancies is 38.3%, the overall average for all tenancies is only

4.4% for Gravesend.
And 4.4% is much lower than the rate of inflation.
Contrary to popular belief, landlords' profit margins have significantly dwindled in recent
years. The profits for private landlords are at their lowest since the Credit Crunch due to
rising mortgage rates and limited tax relief. This demonstrates that private landlords are not
profiteering during the cost-of-living crisis.
Now some of you will say, Gravesend house prices have risen in that time. Yes, that is the
case, yet not by the rate of inflation, so in fact in ‘real’ terms, their investments have gone
down in value.
Landlords are often portrayed negatively in the media but are in
fact making considerable efforts to provide safe and secure housing

for millions of tenants.

Landlords face growing costs, including increased mortgage payments and the negative
impact of a tax system that discourages investment in the rental market. These challenges
are further exacerbated by ongoing uncertainty surrounding reforms to the law regarding
landlords.

With limited options available, landlords must choose between leaving the private rented
sector, increasing rents as a last resort, or absorbing mounting costs. However, the latter is
nearly impossible for most individual landlords who lack deep pockets. To address these
challenges, the Government must provide crucial support to the rental market.
To alleviate the burden on renters, the Government should reconsider current taxes which
are designed to discourage landlords from providing more rental homes. It is vital to ensure
that the supply of rental properties does not further diminish, as Gravesend tenants simply
cannot bear the consequences of a dwindling market and it will lead to further housing
hardship.

Without proper government support, both renters and landlords
will continue to face challenges, caught between a rock and a hard

place.

Housing is such an important thing (rather like the NHS), and I would urge all parties, to
move beyond rhetoric and take positive action to support the private rented sector.

I know many Gravesend landlords who are making sincere efforts
to shield Gravesend renters from the mortgage crisis, and it is

crucial their contributions are recognised.

By fostering an environment that encourages investment and providing support to renters,
the Government can help alleviate the strain on both landlords and tenants and ensure a
sustainable and fair rental market for all.

These are my thoughts, what are yours?

Maxine

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