I’ve been in the lettings business since 1991 and never had a year which was worse than the one before. Letting appears to lack a “reverse gear”. The worry is that the supply of tenants with a decent credit history will dry up. I know lots of ways to find landlords and their properties but I don’t know how you can easily manufacture extra tenants.

Our industry is not an exporter, so Eurozone problems don’t directly affect us, but industries that do export employ our tenants. A public sector pay restriction of 1% for 2 years after the current pay freeze ends will cut into tenant demand, particularly in areas where the public sector dominates like Wales, Scotland and the North East. 

The Government is to guarantee £20bn of new bank lending for small businesses; you can access this cash to start a business or to expand an existing one, including re-branding/re-launch. We have experience of the SFLG scheme which the new National Loan Guarantee Scheme replaces. Because the banks still have some exposure on the loan, it’s not simple. The banks charge 6% over base which is high, against secured lending at 3% over base. So the Government’s intention of reducing the interest charge is welcome.

It’s also good to read that the current business rate holiday for small firms will be extended to 2013. I know a franchise owner who pays just £100 per year.
Increasing discounts to 50% for tenants to buy social housing stock, and re-investing the proceeds seems pointless. Why not set a household cap so that if you earn £50,000 per year you no longer qualify for social housing and you have to rent privately or buy a home. This would immediately free up social housing in areas where there is self-evidently paid work. 

Perhaps it’s time to open a franchise in Scunthorpe? Tolls on the Hull suspension bridge are going down 50% and I’m just guessing but maybe the glamorous pull of Hull will mean North Lincs becomes a commuter belt! Sighting your business next to an airport looks like a good bet – all options are being backed to increase aviation capacity. If your business is on the Transpennine Leeds to Manchester rail route you can expect electrification to create welcome jobs, the Northern line extension to Battersea will give all lettings businesses south of the river a boost (if only we had a Battersea Martin & Co!).  A new rail link between Oxford, Milton Keynes and Bedford will create 12,000 jobs (thankfully we operate in all three places).

The Youth Contract gets the young unemployed into private sector jobs and includes a £2,275 wage subsidy. At Martin & Co we have found the Apprenticeship scheme to be a very good source of enthusiastic young minds familiar with web technology and social media, at a price our Franchise Owners can afford. 

It’s worth remembering that Housing costs cannot be avoided. That’s why I take comfort in the fact that in 2010 annual net migration to the UK was 252,000, the highest calendar year figure on record. Whilst the UK remains one of the most popular places to live in the world there will always be demand for rented homes.