With Lancaster and Morecambe youngsters not able to buy their own property, my research would suggest the progressively important role the private rented sector has been playing in housing people in need of a roof over their head.
There are increasing affordability problems for first time buyers and growing difficulties faced by social housing providers (local authorities and housing associations) in their ability to secure funding from the government and then compete against the likes of the Persimmon’s and Barratt’s of this world to buy highly priced building land.
Renting isn’t like it was in the 1960’s and 70’s, where tenants couldn’t wait to leave their landlords who charged sky-high rents for properties with Second World War wood chip wallpaper, no central heating and drafty windows. Since 1997 with the introduction of buy to let mortgages and a new breed of landlord, the private rented sector in Lancaster and Morecambe has offered increasingly high quality accommodation for younger local households.
Whilst I knew in my own mind that the type and class of tenant has improved over the last 20 years, I had nothing to back that up until now. According to some detailed statistics from Durham University just released, for the Lancaster City Council area, the current situation regarding social status of tenants shows some very interesting points. Using the well known Demographic ABC1 grade classifications which refers to the social grade definitions (which describe, measure and classify people of different social grade and income and earnings levels, for market research, social commentary, lifestyle statistics, and statistical research and analysis) this is what I found out.
Of the 16,936 tenants who live in a private rented property in the Lancaster City Council area, 12.48% (or 2,114) of those tenants are classified in the AB category (AB Category being Higher and intermediate managerial /administrative /professional occupations), compared to 22.90% owner occupiers who own their property without a mortgage or 3.24% who rent their property from the local authority. Fascinating don’t you think?
Looking at the C1’s (C1’s being the Supervisory, clerical and junior managerial /administrative/ professional occupations), of the already mentioned 16,936 tenants in the area, an impressive 6,823 of them are considered to be in the C1 category (or 40.29%). Again, when compared with the owner occupiers who own their property without a mortgage, that figure stands at 28.22% and 14.47% who rent their property from the local authority. So, if we use the conventional measurements recorded by the white-collar “ABC1” i.e. middle class ….
This means 52.77% of tenants are considered middle class in Lancaster and Morecambe
I could go through all of the social categories through to ‘E however I do not wish to bore you with too many numbers. The fact is that private tenants are moving up the social ladder. Back in the 1960’s and 70’s, the private rented sector has customarily been viewed as a temporary tenure for 20 somethings before they bought a property. Now the increase in renting property in Lancaster and Morecambe may just be a reflection that people nowadays choose to rent long term instead?
Lancaster and Morecambe Landlords need to be aware that tenants now demand more from their properties, the agent and their landlord. Whilst affordability for first-time buyers and tighter controls on lending may mean that these people are in the private rented sector for longer, they will still pay ‘top dollar’ rent for a ‘top dollar’ property.
Thanks for reading. If you want to discuss with me anything about this article or how we achieved 4 applications on a 3 bed home that was £700, please pop in and see me at my JDG office on Market Street, Lancaster. Alternatively you can email me at john@jdg.co.uk or why not ring me on 01524 843322
John