BUSINESS NEWS
Local news outlets have reported that a ‘ record number ’ of Bath households are facing homelessness due to the cost-of-living crisis .
As an attempt to tackle the problem , Bath and North East Somerset Council introduced a programme to provide affordable council-owned homes for social rent late last year .
The former Council offices at 117 Newbridge Hill were converted by the Council ’ s housing company Aequus Construction into seven one and two-bed affordable and energy efficient apartments .
“ Rental prices continue to increase especially around the Bath area ”
The development is one of the first steps in Bath and North East Somerset ’ s initial £ 12 million B & NES Homes programme , which will provide the first 58 general needs council houses for rent to help meet the demand for affordable homes in the area .
At the launch of the new apartments , former cabinet member for Adult Services and Council House Building , Tom Davies , said , “ The seven apartments available in 117 Newbridge Hill are the first general needs council houses provided by the Council for a generation and represent the start of the B & NES Homes programme to directly deliver low-cost homes in our area .
“ The programme already totals nearly 200 properties and this demonstrates the Council ’ s commitment to play a direct role in the delivery of new low-cost homes which will transform the lives of the residents who live in them .”
For those with no choice but to rent a property , action is needed now to control spiralling costs . Miles Robinson , Mortgage Advisor and Director at Home Group Financial , highlights a combination of factors affecting rental prices .
He said , “ Rental prices continue to increase , especially around the Bath area . This is down to a number of factors but is linked to the buy-to-let tax changes imposed by the Government in 2020 where landlords are no longer allowed to deduct their mortgage costs from the rental income , but are taxed on the gross rental . This means lower profits for landlords and therefore many have increased rents in the past few years following these changes coming into effect .
“ Trend-wise we have likely reached peak now in terms of a supply and demand imbalance ”
“ In terms of First Time Buyers , to get onto the housing ladder with increasing house prices , and the lack of increase in wages alongside this , is an enormous challenge . Being on an average wage and trying to purchase your first home in Bath is often not viable unless you have a joint income .
“ The common misconception is it ’ s the deposit which is the problem . For some people it still is , but 5 per cent deposit mortgages have been around in the market for some time now .
“ Recently , Skipton Building Society has launched a 100 per cent mortgage product , allowing First Time Buyers with a rental history to take a mortgage with zero deposit . This is a giant stride to supporting First Time Buyers onto the housing ladder and we may see more lenders follow with similar products in the coming weeks and months .”
Marcus Arundell , Managing Director of Bath agency Homelets , believes that the pressure on the rental market may be easing somewhat due to increased housing stock .
He said , “ Trend-wise we have likely reached peak now in terms of a supply and demand imbalance causing upward pressure on rents throughout the city . Subject to landlord disposals slowing , and investor sentiment stabilising , we would expect to see a return to more normalised stock levels going forward which should create a fairer , more reasonably priced and sustainable private rented market here in Bath .”
Bath-based housing association Curo is one of the largest landlords in the South West , with a diverse portfolio of affordable and market rented homes . It owns and manages more than 13,000 properties across the region , building hundreds of new homes every year for rent and sale .
Curo ’ s flagship development , Mulberry Park located in Combe Down , will provide over 700 high-quality homes , including 30 % affordable housing . Completion of the development is anticipated for the end of 2026
Curo ’ s Passport to Housing initiative , a free and confidential service to help people bidding for homes through Bath & North East Somerset ’ s Homesearch , has saved customers a total of £ 743,533 , or £ 3,541 per customer supported .
Despite Curo ’ s range of support for existing and prospective tenants , the housing affordability crisis is taking an enormous toll on the community . Curo believes that more can be done to ease the pressure .
“ the Government should support local authorities with resources to support the planning process ”
A spokesperson said , “ The housing affordability crisis in the South West is driven by limited land supply , high property prices , Right to Buy reducing affordable housing stock , people moving to the area from other parts of the UK and holiday lets . Local authorities should look to increase the rates of affordable homes in new developments . To achieve this , the Government should support local authorities with resources to support the planning process and enshrine five-year land supply in the National Planning Policy Framework to mitigate land supply issues and prevent inflation .
“ The cost-of-living crisis is putting a strain on our customers ’ finances . We ’ re doing all we can to support them . Our in-house Money Advice service is made up of an experienced and friendly team of advisors . They work hard to support our customers who are struggling financially , using their in-depth knowledge of budgeting , debt management , benefits and grants to help customers manage their finances and access money they wouldn ’ t otherwise get . Over the past year , the service has put more than £ 1.1 million into customers ’ pockets .”
Pictured outside 117 Newbridge Hill : Kevin Guy , Leader of B & NES Council , Tim Richens , Managing Director of Aequus Group and Councillor Tom Davies , Cabinet Member for Adult Services and Council House Building .
THE BUSINESS EXCHANGE 2023 9