Cheap rents at Blair's former home
TENANTS in Tony Blair's old constituency home of Sedgefield pay the cheapest rents in the country – less than a fifth of those at the top of the rental tree in London.
Nationally, the number of people renting a home has soared by almost 20% over the past three months in the slower property sales market, although Tees Valley estate agents had differing views as to the reasons for the boom.
Teesside estate agent Michael Poole, who is also vice chairman of the North-east branch of the National Association of Estate Agents, said the local rental market was “storming away” because first-time buyers usually need to have a 10% deposit nowadays.
He said many of these buyers couldn’t afford a large deposit, but could pay from around £500 to £600 to rent a property.
“A three bedroom-semi that might have been £60,000 a few years ago is now around £140,000 and, although prices have gone down about 10% in the last 12 months, they haven’t halved.”
He added that if a homeowner has bought another property, they often rent out the first because of the sales slowdown.
Ian Davison, founder of Stockton-based estate agents Ultimate Homes and Finance, believes that in the current climate there is a great opportunity for savvy investors in the lettings market.
“Everyone needs somewhere to live, even if they don’t own the home. The downturn has increased demand for rental accommodation, particularly for larger properties.”
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