Lack of city centre space causing concern
A PROPERTY expert has called for the mortgage market to be “unlocked” amid fears that available city centre residential accommodation could run out.
Jonathan Morgan, managing director of Leeds-based residential property lettings firm Morgans, said he was concerned that a lack of development finance because of banks’ continuing reticence to lend was stalling property projects.
In turn, he argues, a shortage of new residential buildings in cities like Leeds will lead to apartments and other accommodation running out and prospective residents looking outside urban areas to live.
Despite his worries about future stock, however, Mr Morgan is bullish about the prospects for his business.
Morgans, which employs 32 staff and has more than 99% of the properties on its books, mostly apartments in Leeds city centre, let, is seeing the rental market boom.
However, argues Mr Morgan, this is because of the lack of mortgage finance available for first time buyers.
Mr Morgan said: “It’s really challenging times. There’s unlikely to be much more rented stock coming onto the market. I think in Leeds we’ve created a real issue for ourselves. We’ve got a problem.
“I think there is going to be more reliance in the future on the city centre market but in the end there’ll be no stock and I don’t know where the next generation will go.
“But certainly I do think more people will rent than ever before and the 10 to 12% renting could easily rise to 15 or 16%. We need the mortgage market to unlock.”
Mr Morgan said he is in discussions with political leaders and other business people in the Leeds City Region about how to get development moving ahead again in the region.
Morgans recently said it is investing £500,000 in a new North Leeds rentals office.
The firm, which has been trading for 13 years in rented offices just across the road, will be moving to 75 Otley Road in Headingley early next year following a complete overhaul of the building and Mr Morgan said the move was a kep part of the company’s business plan.
