The real estate market of England 13.7 million empty rooms

The largest English website, which you can find a roommate – Easyroommate (by the way, he has Russian version) conducted an interesting study of the real estate market of England.

In the result of the study calculated that approximately 13.7 million bedrooms are empty in the present time in anticipation of their residents.

If the owners passed these rooms, it would bring a total of approximately £5.8 billion. The English real estate market there is a shortage of liquidity is estimated at £ 69 billion, with almost 14 million bedrooms idle .

Currently, an estimated 7.7 million homeowners private rental sector the rent in the amount of 68 MLR. a year. And the unused bedrooms would bring in twice the revenue for their owners.

For the first time since 1960, now more people living in the private sector than in social homes. The number of people living in the private sector is 3.84 million compared to 3.8 million living in social houses. This increase largely was due to the fact that buyers were able to make a large enough Deposit to obtain a mortgage loan. But this, in turn, began to exert pressure on the rental market and has attained a massive rise in the monthly rent. The average fee for a Dorm room, grew by 4% compared to last year and amounts and is now at £390 per month.

The real estate crisis which is observed now in the UK, exacerbated by the pressure on the private rental market. Demand consistently exceeds supply and this leads to an increase in rent.

So, a huge number of empty premises is a luxury in the current conditions of the housing shortage. Many older people occupy the vast area just too large for their needs and become a burden for the people in age.

Even if only part of the property of 13.7 million scorched room to put on the rental market, it will significantly ease the pressure on the market and will allow owners of these homes and apartments to make their life easier, a little increasing your income.

More empty rooms, as the study showed, account for the real estate sector in London. In the capital, more than 4 million unoccupied bedrooms, surrendering to rent which tenants could earn around £28 billion a year, assuming that the most modest room for rent in London now average £580.

Many owners of homes in the UK make a choice in favor of renting the empty rooms when they hear about the tax benefits provided for by the legislation of the UK for people who rent their homes. The exemption allows us not to tax on income up to £4250 gross income per year…. However, the legislation in this regard has not changed since 1997, and rents are rising every year. It is obvious that the time to increase the tax-free income. Many owners of properties this stops, especially the ones who have rented property is more expensive and the tax-free threshold will definitely be exceeded.

Thus, the legislative threshold increase non-taxable minimum would make life easier for homeowners, renters and at the same time to improve the difficult situation in the rental market of residential property in the UK.

® Alice Morgan 06/06/2013.