To Let Or To Sell: That Is The Question

Now that I have reached the half way mark in my thirtieth year, I have been entrusted with a position of immense responsibility by my parents: I have been tasked with helping them decide what to do with the family home following their announcement that they are going to be retiring to the sunnier climes of the south of France in the new year. 

Not only has this afforded me greater amounts of responsibility, it also feels as though I have been initiated into the world of home staging thanks to my ever enthusiastic mother, as well as the world of arts and crafts and decorating, thanks for my girlfriend.

Along with many of our fellow Brighton inhabitants, we have been immensely fortunate to have seen the value of our home soar in value since it was purchased in the late 1990s. It is estimated that average house prices in Brighton and Hove have seen a surge of 500% since 1995, increasing from the average cost of £50,000 in 1995, to £300,00 in 2015.

Recent reports have indicated that this is expected to continue even more in the coming months as more and more people flock to the south coast from the capital in search of more affordable housing and a slower pace of life

We are currently locked into an ongoing debate over what the next step should be; should we sell the property and take advantage of the overly generous increases in property value over the last twenty years and put it on the market with a view to cashing in, or do we foray into the world of landlords and rent the property out and become part of Brighton’s booming rental market?

I’m sure that the regular readers of my humble blog will be more than aware that I am an avid follower of politics, but this year’s budget was of immense interest due to our property dilemma. I was pleasantly surprised to learn that the Government shall be offering landlords the opportunity to take advantage of tax breaks if they offer tenants long-term rental deals. Being a reluctant member of Generation Rent, this was particularly pleasing to hear, especially as I have long been an admirer of the German approach to the rental sector.

This has most certainly had an influence on our thought process over the last couple of days and we are now veering towards putting the property up for rent and taking advantage of the lucrative opportunities. As I mentioned earlier, the rental market in the city is particularly strong due to the appeal of living here and the fact that we are a two-university city.

This decision has been made more likely by the fact that Hammond discarded wide-ranging Planning Reform proposals that were a key feature that were announced by the previous government before the last general election. This led to a fall in shares in house-building companies once it became apparent that Hammond would not be proceeding with the ambitious programme that the markets had anticipated.  While the government is expected to deliver 300,000 homes a year, it is unlikely that this is going to keep up with the demand for quality across housing across the company. As much as it pains me to say, this is likely to the advantage for those offering rental accommodation, which would work in our favour as landlords.

Taking all of these issues into consideration, it does looks as though we are likely going to be renting the property out, with yours truly joining the ever-increasing number of landlords across the city. 

Wish me luck!