Across England there are concerns about housing shortages. The Government and local councils are trying to tackle the issue by boosting the supply of new homes. However, in some cases the developments don’t do enough. There can also be situations where the properties never become full time residences. We want to look at this today, with focus on Southwark’s current issue. Then, if you need guaranteed rent in Southwark, we can help.

The full story

Data from the Department for Levelling Up, Housing and Communities shows that the housing stock in England grew by 682,235 from 2019 to 2022. It is an impressive total, but at the same time, there were registrations of 26,043 properties as holiday lets or second homes. So, it works out that 4% of the new stock was lost.

The situation differs massively across England. Some spots are very popular when it comes to holiday lets and second homes. According to research from Generation Rent, 25 local authorities account for the majority of the properties.

The worst area during the period was Portsmouth, losing five homes for every four new builds. As a result, there was actually a drop in the available housing stock even when construction was taking place.

London is an interesting spot if you look at the data. Overall, the housing stock in the city had a big increase by 188,137. The number of properties that weren’t primary residences also fell by 329.

Southwark’s case

While the situation was good for the whole of London, some areas had an increase in the number of holiday lets and second homes. Southwark had one of the biggest problems. There were 4,004 new homes, but 2,248 properties were newly classified as not being primary residences. As a result, over 60% of the new housing stock was cancelled out. That means problems for buyers, renters, and investors looking at buying and guaranteed rent in Southwark.

To put that into perspective, Kensington and Chelsea saw a big drop in the number of second homes. From 2019 to 2022 there were 1,076 fewer in the borough.

Southwark Council spoke out about the issue. Leader Kieron Williams said it was “plain wrong” that there is such a problem at a time when homelessness is a big issue. He said that short-term lets in particular were only originally for owners to earn a little income while they were away. It was never the idea for these lets to become a way for companies to make huge profits.

What to do?

There are numerous calls for a crackdown. In fact, the Government is currently consulting on plans to require the registration of holiday lets. They could also force a change where owners need planning permission if they want to let to tourists. The idea here is to increase regulation.

Generation Rent also wants the Government to do more. They want to see local councils be given the power to put licensing schemes in place for holiday lets. In addition, they want to see a cap on the numbers. Finally, they feel that any tax breaks should be withdrawn.

Talk to us about guaranteed rent in Southwark

We appreciate that London and England as a whole have some great areas for property investment. At the same time, there can be a lot of demand for housing and issues with supply. Luckily, we can offer a service that helps all sides. It can work for investors to guarantee they get a stable income from their assets. At the same time, it invites local councils to choose tenants to live in the properties.

If you want to find out more about guaranteed rent in Southwark or other parts of London, we would be happy to help. Then, if you want to start, we can set everything up for you and you’ll get rental payments coming in within a matter of days.