How can PropTech help ease the housing crisis impact in 2017?

How can PropTech help ease the housing crisis impact in 2017?

Robert Imonikhe - Ideal Flatmate

The benefit PropTech brings does not just begin and end with generation rent

Robert Imonikhe, co-founder and Director at Ideal Flatmate, discusses how the PropTech domain is working in parallel with government initiatives to ease the blow of the housing crisis on both tenants and landlords, and how much further it needs to go.

Underpinned by the property market’s inability to deal with the demand for affordable housing, the Housing Crisis has brought with it an influx of millennials unable to buy a home. However, the 2017 housing whitepaper was a significant step forward from the UK Government in an effort to help renters. In part, and most importantly, it outlined that landlords should be offering longer-term tenancies to improve security in the private rental sector.

To put this into context, we have seen a clear increase in millennials opting to rent in the city rather than buy - a clear 8% upsurge to 28% between 2008 and 2016 - in fact. In that same time, the housing crisis became a very real reality, with average house prices rising from £160,954 in December 2008, to £219,544 in the same month of 2016 .

In quite a clear correlation, the number of people privately renting has seen a significant surge. In 2008, 11% of the UK’s population lived in private rented accommodation, a figure that grew to 16.3% by 2014.

With these shifts also came the increased number of tech based property companies on the market with Industry giants like Zoopla and RightMove pathing the way for the incursion of startups. These consequent companies have been setting out the trail for higher levels of transparency in the private rented sector, and with “generation rent” now forecast to spend £44,000 more on rent than baby boomers by the time they reach 30 , millennials sorely need this help.

Generation rent now deserves security. Whilst the housing market has been a ticking time bomb working against them, there have been clear societal shifts also contributing to the new renting culture, including slower wage growth, opting to marrying later and a higher focus than ever on career progression.


Offering a varied pool of options to search for a home to rent, PropTech has given people innovative alternatives to the flat hunt. Ideal Flatmate was developed to help generation rent find homes and flatmates who match their lifestyle to facilitate longer relationships, and MoveBubble created an easy to use platform for people to search, find, view and make offers on bookings in one space. Taking both as examples, PropTech has managed to offer a crystal clear picture of the rental process from start to finish for the user.

The benefit PropTech brings does not just begin and end with generation rent; landlords are making use of new services too. Apps such as Legal4, that allows landlords to look into the past of potential tenants and discover if they have been evicted or blacklisted, or The Landlord App, which gives landlords a one stop shop to help landlords complete all the tasks associated with managing their properties, are two great examples.

There is one very clear way that the UK can use PropTech to its advantage during the crisis. With longer tenancies now being pushed for, finding ‘a place to live’ needs to become highly relationship driven. If tenants are happier with the people they live with, the property they rent out and the landlord in question, it means they won’t just be content with where they live, but they can happily call it a home, thus easing the blow of the Housing Crisis’ impact – tenants will no longer feel they have drawn the short straw by renting.

With PropTech as the catalyst to facilitate these needs, those finding it hard to get on the property ladder have solutions in the palm of their hands to remain in control of their own standard of living. We could, in theory, be working towards building a Britain willingly operating as a rental society, like our European neighbours in Germany have already done so well.

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Latest Comments

Tony Gimple
Tony Gimple 09 Dec 2017

Linking professionalism to limited company borrowing is a flawed concept. Despite S24 etc., limited companies are the most tax inefficient way of running a property business and leave borrowers seriously...

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

It's normal. If you plan to buy a house in one of the most beautiful spots in the country you should pay a high price.

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

I think that the situation will be the same at December.

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Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

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richardrawlings
richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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