The housing crisis is one of the biggest issues facing the country right now. Councils across the UK are struggling to find enough affordable housing for those that need it, the government is trying to come up with solutions and, all the while, housing stock is becoming harder to procure.

Those in property development have their role to play. There UK needs more housing, and that’s a fact. With this in mind, let’s look at how those working in the property market can ease housing shortages and benefit at the same time.

The Government Needs You

If you work in property development, it’s highly likely you have read about the various plans and schemes aimed at easing the housing crisis and enabling more people to get on the property ladder. Now, the government is putting a firm emphasis on the role of property developers in these efforts.

A recent speech from Prime Minister Theresa May saw her talking about the role of property developers in “restoring the dream” of home ownership. She talked in detail about a need to rewrite planning laws to make it easier for private housebuilders to step up and fill the gaps in construction of new homes.

For property developers, this represents a golden opportunity. There is a huge potential market of home buyers out there that are just waiting for someone to meet their needs. The government proposes to go way beyond its white paper on the issue published last year and allow councils to borrow more money to invest in housing. For property developers, this means councils with new sources of cash who are going to be looking for the land and expertise of property developers to make new housing developments a reality.

The Flip Side

On the other side of the issue, many government plans to increase housing stock have gone nowhere. People are sceptical about anything the PM announces to do with the issue, as there has been scant improvement from other schemes and proposals. For property developers, this means their existing portfolios will only increase in value.

A paucity of housing makes existing stock more valuable. It’s a simple equation but one that is good news for property developers. The longer the shortage of housing goes on, the more people will be willing to pay for those that are available, and property developers can benefit from snapping up housing and property fresh to the market. People need homes, and someone has to provide them, and with such a demand, property developers are perfectly placed to reap the rewards.

If you’re thinking about investing in property, or want to expand your existing portfolio with expansion capital get in touch with GIC Capital today.  

Moving house is often described by those who have experienced it as the most stressful time during their lives. The upheaval of your life and the need to pack up all your belongings and sometimes, relocate to a completely different part of the country, is understandably, a fairly hefty challenge.

Despite this, it hasn’t stopped people moving home throughout their lives, either to upsize, downsize of relocate for a new job. That is, until now. A recent study that was based on census data over a 40 year period has revealed that both renters and homeowners are much more likely to stay put than they were during the 1970s.

So, what is driving this resistance to relocate?

The research seems to have revealed a pattern of social change and seems to further indicate a slowing down in social mobility.

A fall in upsizing and downsizing

Back in the 70s, it was much more common for people to progress in different directions on the property ladder. That is, either moving up it to bigger and better housing or in a downward direction by downsizing. During the 70s, 55% of people would move over the course of a decade, but by the 2000s this number fell significantly to 45%.

An aging population

There is also speculation that a fall in the number of people choosing to move house and relocate could be thanks to an aging population that continues to grow. Considering the fact that people now live, on average, for a decade longer than they did during the 70s, this conclusion would seem to make sense.

The lack of affordable housing

It’s no secret that the UK is currently being blighted by a severe lack of affordable housing, something that the Prime Minster is desperately trying to address. With house prices continuing to rise also, there is much less choice and availability for those with dreams of relocating, causing many people to choose to stay put.

Job insecurity 

There is certainly more than one factor contributing to a rise in job insecurity in the UK. The rise in automation, the uncertainty of Brexit and the pressure for businesses to remain productive in an ever-changing economic landscape are just the tip of the iceberg. Feeling insecure in job roles could be contributing to people staying in their homes and commuting longer distances instead of relocating for work.