This article has been submitted by Ad Hoc Property Management
The property market across Wales has seen a dramatic increase in value and shortage in housing, as has the rest of the UK.
Asking prices for homes have hit an all time record high of £317,281, while the average rent paid reached its own record high at £816 per month. With prices soaring at such a staggering rate, it’s hard to believe we will ever see them slow down and leaves an obvious answer to the big question, does Wales have a housing crisis? Yes.
According to reports, Wales has previously seen an annual property value rise of 3.5 per cent, with an even bigger increase of 4.3 per cent expected year-after-year in the years to come. With properties valued at such high amounts and wage growth slowing to roughly 0.1 percent, affordability has become a major issue for anyone looking to buy or rent a property. It is estimated that within two decades, one in five households could be without a home due to a combination of the housing shortage and inflated property prices.
Millennials in particular are a group who are feeling the pinch of the housing crisis. The younger generation are spending upwards of £44,000 more on rent by the time they turn 30 than baby boomers did at their age. In addition, approximately 63 per cent of 50-70 year olds owned their homes by the time they turned 30, which is an unrealistic goal for most now. With the extra money that is being spent on rent, young people are finding it harder to save and additionally, with a new bill recently introduced that looks to scrap “Right To Buy” in Wales, there are significantly more people in need of an alternative affordable solution.
So, what is this alternative solution for those dealing with the current housing crisis?
Across Wales there are an estimated 26,500 homes sitting vacant. In Carmarthenshire alone, there are 2,671 vacancies while in areas such as Swansea there are 2,269 and Cardiff 1,318. Of these numbers, 39 homes have been vacant for a decade, 166 vacant for at least five years and 384 empty for at least two years. These empty buildings are a waste of an important resource that could be used to the benefit of those in need of affordable housing.
To bring these properties back to life, organisations such as Ad Hoc Property Management have developed a solution entitled the ‘property occupation model’. This model is designed to place individuals within empty properties where they can live at an affordable rate until they find something more permanent. Although it does not enable families to use it, it is the ideal solution for many others looking for a place to live. It uses what is called a licensee agreement between the individual and the property guardian company, Ad Hoc Property Management, which provides strict guidelines for both parties to adhere to.
The property occupation solution benefits all parties involved. It is ideal for those finding their way into a different career path due to its affordability and ability to provide a good quality living experience. In addition, it is not limited to any particular area in Wales, meaning each person has a choice when considering their next move.
From a security perspective, each empty building that becomes occupied stops being a threat from such issues as squatting, vandalism, asset stripping and any other anti-social behaviour. There is then the positive impact this has on the housing crisis; by filling empty buildings with people, termed Guardians, this solution is not only able to make use of properties that previously had no purpose, but also it can reduce the need for so many new houses. What’s not to like?
To find out more about Ad Hoc’s property occupation model as a solution to the housing crisis, click here: www.adhocproperty.co.uk.