Generation Rent Finally Provide Some Useful Info

Generation Rent Finally Provide Some Useful Info

10:28 AM, 26th August 2017, About 5 years ago 12

Text Size

A few us of secretly signed up to receive Generation Rent emails some time ago, mainly to stay abreast of their latest propaganda.

However, they now appear to be inadvertently giving us insight into the best places to invest for both rental and capital growth. Apparently, all we need to do is find out where Waitrose would like to open stores in the future, buy there and watch the money pour in.

Below is the email they recently sent out.

We look forward to reading your comments.

Here’s the extract from the Generation Rent update email ….

If Waitrose opens a new store in your local area, it could mean different things: job opportunities with a well-regarded employer, extra choice for your weekly shop – or, if you’re a renter, an eviction notice through the door.

Oxford academic David Adler has pored over eviction data from the Ministry of Justice and opening dates of Waitrose branches between 2005 and 2015. In a paper, published by Generation Rent, he found that areas see an increase in no fault evictions of between 25 and 50% when they get a new store.

He links this to rising house prices. Waitrose tends to open up in areas that are getting wealthier – i.e. through higher house prices. The presence of a Waitrose then attracts wealthier people into the area, which pushes up house prices further. Some landlords respond to rising property values by selling up, or finding tenants who can afford a higher rent – and that involves turfing out their current tenants.

It would be unfair to blame this phenomenon on Waitrose, but it does illustrate the impact of gentrification for private renters, when we have so little security over our homes. Renters shouldn’t face a forced move just because their neighbourhood is becoming more fashionable.

It’s another reason why we’re campaigning to end Section 21, the law that gives landlords the ability to evict tenants with no reason – and no grounds for appeal. If landlords are supposed to be in business for the long haul, the law should not make it so easy to evict someone who is upholding their side of the agreement.

We’re proposing restrictions and a penalty to deter landlords from evicting blameless tenants, giving tenants greater stability and a financial safety net if they are forced to move.



Comments

Mike D

11:33 AM, 29th August 2017, About 5 years ago

Nationwide are only protecting their 'assets' by reviewing markets and the safety of their money.
Its been well know for a long time that a waitrose presents raises house prices in the area, as wealthy like to shop there, and once is there is a new one, it opens up a new area to move too, thus demand and price increases.
They have just put one in one of my rental towns, so i'm hoping for further house price increase to improve the asset base reduce LTV and make mortgages easier and cheaper.
It also means increased rents and better tenants....not much to dislike as a landlord really. Although the Waitrose 'factor' isn't a singular, the town has just had a new bigger station and been electrified for faster and more regular trains into Birmingham, this will encourage commuters and again create demand, so Waitrose have probably also built on this too......that's why London has always prospered over the rest of the UK, it receives the biggest infrastructure spend over anywhere.....share that out, and other cities will improve and prosper and we'll have a more balanced economy throughout the uk.

Mandy Thomson

14:29 PM, 3rd September 2017, About 5 years ago

"Renters shouldn’t face a forced move just because their neighbourhood is becoming more fashionable." That is the only statement I agree with.
Most of the landlords I come across would never evict a good tenant to get a higher rent. End of tenancies are expensive for landlords as well as tenants. Preparing the property, marketing and a void period is most probably going to more than gobble up the increased rental income from the new tenant, at least for the first year.

Generation Rent and other tenant organisations conveniently forget one fact about section 21; section 21 is mostly used even where there are grounds because it is much easier to get an eviction than with section 8. I have seen it used even in cases of many months rent arrears, serious property damage and/or other serious violations of the agreement.

This is not what section 21 is supposed to be for, but with courts overloaded with work, and judges tending to be biased more in favour of tenants (because if the landlord wins, another household becomes homeless), most landlords simply use section 21.

I have never evicted a tenant, and like most landlords, would only do it as an absolute resort.

If Generation Rent want to get rid of section 21, or at least increase the time limit before it can be used, they need to campaign to make it much easier for good landlords to get rid of rogue tenants.

Section 33, the Scottish equivalent of section 21, is soon be withdrawn, meaning grounds will be the only means of evicting under new tenancies. This is will bring the Scottish housing market back to 1970s, when rental property was harder to find, with the added whammy of 2010s property prices. This will not work out in tenants' favours.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Tax Planning Book Now