Four developments funded by English Partnerships (EP) in the south west region are to be for "residents-only" in an effort to ease the housing shortage. Could it happen in Brighton & Hove?
English Partnerships hasn’t ruled out applying the same rule to other developments in other parts of the country if the pilot, applying to 2,500 new homes in the region, proves to be successful.
The scheme follows evidence that many new developments are suffering from transient tenants and homes being left empty by owners who purchased them for their investment value, thus undermining the viability of local services such as shops, restaurants and health facilities.
Alarmed by the growth in buy-to-let (see earlier story in knowledgebase) the Department for Communities and Local Government has indicated that it would investigate if government action is necessary to mitigate some of the negative effects of the burgeoning market.
In Brighton & Hove we have one of the largest private rental markets in the UK and buy-to-let has been an attractive proposition for investors over the past decade. With increasing interest rates rental yields no longer cover the cost of borrowing on many properties and this is expected to slow the buy-to-let market.
The EP scheme could be introduced into new developments in Brighton & Hove where public money has been used to assemble the land or the local authority already owns it but there are no known plans to introduce such a scheme in the city.
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