22th September 2016
The decline of Primark
and the rise of the buy to let landlord
News that Primark, the fashion chain and one of the high street stars, is seeing difficult trading conditions has been put down to the fickle nature of the weather. As this is part of wider trend of declining retail sales that has be accompanied by a rise in spending in the leisure sector some commentators have suggested that it is down to changing lifestyle choices; we are bored of stuff and prefer the experience; eating out and more holidaying. However this phenomenon is probably more economic in nature.
That of an increasing number of buy-to-let landlords and rising house prices which has resulted in the movement of disposable income from tenants and first time buyers to landlords. Generally those who rent in the private sector or buying for the first time will be young and short of money where as those buy to let landlords are planning probably still in employment and planning for future financial security. Thus we have a situation where renters are cutting back on the small luxuries like new clothing and the landlords are feeling lavish. With the cost of housing already outside the reach of many this phenomena may well be with us for a while still.comments powered by Disqus