A buy to let landlord popped into the office last week
saying that she had read my recent blog about the new flats that Miller are
building at Dalmore Mill between Auchendinny and Penicuik and wondered whether she
should buy one of them. As an
experienced landlord, she was less interested in the low maintenance nature of
these new flats, rather she was thinking more about whether buying a flat or a
house would be better.
I did a bit of research and it interesting what I found.
There are currently far more houses in Penicuik than
flats. In total, 82% of properties in
Penicuik are houses (split 18% detached, 34% semi detached and 30% terraced)
with only 18% being flats. Interestingly
Penicuik has a much higher proportion of houses (82%) than Scotland as a whole
(63%) as the ‘Scottish as a whole’ figure is affected by the high proportion of
flats in cities particularly Edinburgh and Glasgow.
However, the trend in Penicuik is to build more flats
than houses. Over the last 10 years more
flats than houses have been built as 10 years ago 83% of Penicuik’s properties
were houses and 17% were flats. This
trend is continuing if you look at the recent, current and projected building
plans for Peniciuk overall. The main
developments include Midlothian Council’s building programme in, for example,
Eastfield Drive, Jackson Street and Craigiebield Crescent, Miller’s development
at Dalmore Mill and Taylor Wimpey’s planned development at Greenlaw Mill – overall
more than 18% (the current proportion of flats in Penicuik) of properties being
built in these developments are flats.
The trend in Penicuik is seen across the country where
the current proportion of flats (32%) is more than double the level of 20 years
ago (15%).
So more flats than houses are currently being built in
Penicuik. I believe that this trend will
continue for a number of reasons:
- The current housing shortage is only going to encourage developers to create more and more flats.
- Institutional investors coming into the Private Rented Sector will be building on a big scale, and again, flats will most likely be their preferred property type as they can manage blocks more effectively.
- The planning regime will encourage the change of use of office and commercial buildings into flats in city centres.
- Councils are keen on high density flats as they can extract more council tax, therefore this might influence planning decisions. They also need to solving the housing shortage on a local level.
- Developers are turning big houses into flats to increase their overall value.
I suspect that the reason we are building more flats in
Peniciuk is more to do with what the builders want and the planning process
rather than flats actally being the property of choice for people in Penicuik
looking to buy or rent a property – most buyers and renters in Penicuik want
houses rather than flats. Given this,
demand for houses should increase should increase as should both their sale and
rental values.
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