While the London property market is notorious for very small properties attracting large rental valuations it seems that this may be spreading to other parts of the UK. South Essex in the shape of Nobles Green Road, Eastwood would seem to be a very much sought after area amid news that a bedroom with very basic bathroom facilities is available for rent at £495 per calendar month inclusive of bills.
On further inspection the “ensuite bathroom” consists of a toilet, shower and sink with only a couple of feet and a curtain separating this from a double bed. While it would be wrong to suggest this is commonplace across the area at this moment in time, it is a little concerning to see these types of properties emerging outside of London.
Employment and demand for property
It is common knowledge that the South of England is by far and away the most prosperous region of the UK with regards to employment. While the North and Midlands have made progress over the last 20 years or so there is no doubt they are still lagging their southern partners. The fact that these very small and very basic properties are re-emerging outside of London, especially bearing in mind the current economic environment, is surprising to say the least.
Many experts will now be monitoring the South Essex property market because if demand is so high then we will likely see investors looking towards this region.
Decentralising employment hotspots
The decentralisation of employment hotspots across the UK has been a thorn in the side of many governments. It is something of a double edge sword because taking employment opportunities away from one region and passing these to another area of the country will impact voting habits. When you bear in mind the UK political scene, which seems to change on a regular basis, could any government really risk decentralising employment hotspots to a great extent?
The matter of property valuations should also be taken into account because employment hotspots create demand which pushes prices higher. If for some reason this demand for property was reduced then prices would weaken and again this could potentially alienate local voters.
Over the years we have seen a number of attempts by governments to spread public services across the UK taking advantage of lower rents and employment costs in some parts of the country. This has to a certain extent been successful with one of the largest social service offices located in Newcastle upon Tyne. However, many believe this is very much a token gesture when you bear in mind the amount of employers and employment opportunities situated in London and the South of England.
Whether the emergence a small rental property offering basic facilities but priced towards the top end of the market is a new trend in South Essex remains to be seen. When you bear in mind the overall UK economic situation, the uncertainty in the short to medium term and a potential increase in UK-based rates, it is perhaps a surprise to see such a property made available. However, we can only assume there must be demand for this type of property?