News from the Residential Property Investor, the bi-monthly magazine for RLA members other artilces from the August / September 04 issue RPI news archive

'Natural segregation' affects house market - August / September 2004

Private landlords can do much to target particular tenant groups by choosing properties in locations that suit those groups most. This is because 'natural segregation' (or 'ghettoisation'), with people gravitating towards places which provide them with the facilities they want at each of five different phases of their lives, is an important factor in the housing market, according to the Royal Institution of Chartered Surveyors.

In fact, buy to let investors look first for good public transport links and local shops when choosing property to buy, and also rate security and safety high on their list.

Chartered surveyor estate agents were asked to state the three most important criteria specified by homebuyers registering on their books. Homebuyers were divided according to age and life stage into: single buyers; couples with no children; couples with children at home; couples with children that have left home; the over 65s; and buy to let investors.

The most important factor for couples with children at home is the proximity of good schools and nurseries - 92 per cent saying this was their top priority. Meanwhile over three quarters of younger, single buyers look for good nightlife and close proximity to bars, restaurants and clubs.

Leisure facilities remain important regardless of marital status until children come along ­ 62 per cent of couples with no children want to be near gyms, theatres and art galleries. But With the exception of the elderly, good transport links rank as one of the top three most important factors with all of the groups.

RICS said there 'are numerous examples of age ghettoisation occurring across England and Wales'. South west London is home to Wandsworth's 'Nappy Valley' where the birth rate is the highest in Europe; there are swathes of retirement areas across the south coast, such as Bournemouth and Bexhill-on-Sea. And concentrations of young people can be found in areas such as Hyde Park in Leeds and Fallowfields in Manchester ­ in part generated by the university population but perpetuated by the desire for young people to be near 'happening' areas.
 

other artilces from the August / September 2004 issue

• Licenced to charge
• Fitness certificate proposed by RLA
• 'Sensible approach' by landlords
• Built-in flood resilience to be required
• Crackdown on estate agents
• Landlords striking better deals
• Conservative plan the 'right to own'
• 'Natural segregation' affects house market
• Spreading the risk
• Watch out for the tender tax trap