“Gentrification” is a term first expressed by the sociologist Ruth Glass in 1964 to explain the return of an emerging middle class in London’s center.
With beard sporting, headphone clad hipsters on the rise- scurrying from pop up designer coffee shop to coffee shop is it any wonder that gentrification is a hot topic for discussion.
Until recently, only stuffy academics and demographic geographers for local councils would coin the term. Recently however, the word has entered our national zeitgeist.
It is generally understood that gentrification means that demand and property values rise, poorer residents end up replaced by wealthier, professional classed people with a soiree of new shops and neighborhood changes.
South east London is set to become the new fashionable Soho. Known to be Grimy and rough around the edges only ten years ago today’s Bromley, Beckenham and Peckham seem vastly changed in today’s London.
So with this in mind, despite the political pros and cons – the rising question among Landlords is: Is this good for us, or do we ultimately end up out of pocket?
Let’s take a look at some crime statistics:
The Metropolitan police crime statistic rates states that in the borough of Bromley the number of occurrences has actually increased over the past year.
October 2016 – October 2017 = 24,494 occurrences
October 2017 – October 2018 = 24,900 occurrences
with this as it may be perhaps gentrification is not such an ideal, although the general rise on crime over the past few years means that perhaps only a slight rise is actually a pleasant side effect of gentrification.
Lets take a look at house prices:
As the guardian states: The average property sold in London fetched £40,000 in 1983; the figure is now £449,000. With the shocking surge in house prices over the last few years, renting has become the new in thing for younger generations looking to get their share of the big city. This is of course great news for Landlords but there are few things we should bear in mind.
With the rise in rentals comes a rise in the amount of competition. Landlords seeking to attract the best clientele in a soon saturated market. Attracting a potential tenant can be a developing problem. That’s where property management companies can provide large scale advertisement without additional costs. Check out Your Professional Lets for a highly recommended service: Your Professional Lets
Let’s take a look at demographics:
The expectant state is that with a large increase in the price of living with newly gentrified areas -comes the topic of who can afford to live in these areas such as; Bromley, Beckenham, Lewisham, Croydon. It might be surprising to note however that this mass exodus of tenants to the outer skirts has not happened. There is a small amount of evidence to suggest from charities and food banks that poorer residents are staying and just paying more for their amenities. With that as it may whilst tenants who are not able to keep up may end up being moved to other areas it does that mean that the quality of residents is developing substantially.
It appears that overall Gentrification is set to continue to be a point of conversation for areas such as Bromley. With crime rising, house prices rising exponentially, and the actual demographics still unclear it is impossible to say whether gentrification is the blessed golden treasure chest for landlords.