Sunday 2 June 2013

Recipe for future slums !

A trend is emerging to create a new source of income by adding a " Granny flat " to the backyard of an existing house. A number of building companies have swooped on this idea as the solution to lack of new building work and are offering modular units which can be built quickly and cheaply.

This idea gets the nod from both governments and councils.   Government agencies are interested in keeping the elderly in their homes as opposed to the cost of creating new bed numbers in nursing homes.  The " Granny flat " idea seems to mesh with either accommodating a cherished family member in the backyard of an offspring, or the offspring moving into the former family home and creating new accommodation for their loved one in the backyard.   Either option suits government objectives.

Such " Granny flats " may serve that purpose initially, but the mental picture of a demure old lady living peacefully in such accommodation will morph into reality for some when there is a vacant granny flat being sought by desperate tenants trying to escape the rental shortage.   Owners with this type of accommodation available will quickly realise that they can extract a hefty premium because rental scarcity has pushed rental prices through the roof !

The danger is that the combination of dwindling job opportunities and rising living costs may see this trend accelerate and turn pleasant suburbs into crowded slums.  If necessity forces a family to squeeze into accommodation designed for a single person, the standard of living for both the owner family and the tenant family deteriorates.   Both suffer a lack of privacy and there will inevitably be a rise in noise problems, not to mention car parking space problems on the street scene.

We already have a problem with some home owners turning dwellings into de facto boarding houses.  Illegal partitioning has divided bedrooms into " sleeping spaces " and in some instances the number of tenants has resulted in " hot bunking " - where bed allocation is shared on a time basis.

Granny flats are a legitimate anwer to the problem of an aged relative in many cases, but once approved and built they offer a new source of income which may become essential for the owner.  Not all tenants are " good " tenants and tenancy laws make it difficult to evict a " bad " tenant if they continue to pay the rent on time.   Eviction is a long and difficult process, and  when relations between the tenant and landlord deteriorate, a very unpleasant situation usually evolves.

This granny flat trend is in it's infancy and now would be a very good time to give careful thought to how it should be managed.   There is a tendency for these units to be modular and constructed off site.  Perhaps we need new laws to license them specifically for the purpose of housing a nominated person, and when that person becomes deceased the approval lapses.   Modular units can be installed - and removed - using a crane and are therefore suitable for resale and relocation to a different address.

With careful planning this trend need not threaten our present way of life.   It only presents a danger if it is allowed to rampage free of control !

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