£1million spent on Travel Lodge accommodation in PRS perfect storm

by Property118.com News Team

9:48 AM, 27th September 2016
About 2 years ago

£1million spent on Travel Lodge accommodation in PRS perfect storm

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£1million spent on Travel Lodge accommodation in PRS perfect storm

It has been reported that Peterborough Council have spent over £1million to house families in Travel Lodges since April This year.perfect storm

This is due to an increase in Homelessness in Peterborough from an average of 98 people per month to 150 in August.

The Council is blaming this increase on the role out of Universal credit and increases in the tax burden on private Landlords.

Peterborough Council service manager for adult services and communities, Adrian Chapman said, “we’ve seen a number of landlords in Peterborough deciding to sell up because it’s no longer a viable business for them, partly down to new taxation rules.

“We’ve also seen a number of landlords who’ve decided to no longer accept housing benefit claimants.

“We just don’t have the ready supply of available, suitable, affordable accommodation in Peterborough. Demand is simply outstripping supply.

“It’s a perfect storm of issues to cause this unusual peak in demand.”

However, central government hit back with a spokesman defending their policies saying, “there are many reasons for homelessness and to suggest that it is due to welfare reforms is wholly misleading.

“Councils have a responsibility to house families in settled accommodation as quickly as possible, which is why we have given them the tools to achieve this. One person without a home is one too many and we are investing over £500 million to tackle homelessness and stop it happening in the first place.”

As the Mortgage Interest relief reductions are phased in, and begin to bite it, is expected that this issue will be more widely replicated throughout the country.



Comments

Mark Lynham

10:24 AM, 27th September 2016
About 2 years ago

Makes you wonder why Peterborough Council are introducing Licensing then doesnt it..... i have a property there that i've rented out for years with no problems but am now thinking of selling it due to licensing....

Robert Mellors

13:34 PM, 27th September 2016
About 2 years ago

Perhaps we should all be opening Travellodge style hotels, and charging the councils £50+ per night????!!!!

Gromit

14:05 PM, 27th September 2016
About 2 years ago

Reply to the comment left by "Robert Mellors" at "27/09/2016 - 13:34":

................and probably be able to claim fully any finance/costs as a business expense.

Hey that sounds like a plan 🙂

DC

14:37 PM, 27th September 2016
About 2 years ago

I own various properties in and near Peterborough and for the first time in a long time, last November I raised rents on all my properties and have just sent out letters to tenants outlining this years rises in preparation for the Sec 24 tax changes.

The tipping point for me though was Selective Licensing in the City, which encompassed 2 of my properties, one of which is on a very respectable development and only 9 years old. It's now sold and the other, which has been drawn into the Selective Licensing area along with a brand spanking new development within the multi-million pound Southbank development area, will be going on the market for sale next week!

I took the time and effort to send a very detailed letter to the City Council during the consultation process outlining all the fall-out that was likely to follow if the constant battering of landlords with taxation changes and expensive licensing were to proceed. The Selective Licensing scheme has literally only just come into force and they are already suffering the consequences.

Peterborough is awash with BTL properties for sale due to Sec 24 and it will only get worse over the next few years when more landlords realise what these tax changes will mean to them. Also, all Peterborough landlords may soon be hit with licensing as it's rumoured that the City Council are considering bringing in licensing across the whole City eventually.

I am prepared to sell off my entire portfolio if necessary and if other landlords do so and these properties drop out of the PRS then watch the hotel bill for the City Council rocket.

Luke P

16:19 PM, 27th September 2016
About 2 years ago

As far as I understand only 20% of a borough can be licensed. Liverpool City Council were the last ones to sneak in blanket licensing.

DC

17:10 PM, 27th September 2016
About 2 years ago

Reply to the comment left by "Luke P" at "27/09/2016 - 16:19":

Peterborough is a large unitary council of which the City area does in fact cover approximately 20% of the whole Council area so from what you understand and from the previous press releases that were in circulation when the idea was muted then perhaps they can license the entire (residential) City area.

I will definitely be keeping tabs on what their future plans are with an eye on what the property market is doing!

Mick Roberts

18:32 PM, 27th September 2016
About 2 years ago

Central Government always deny it 'cause they han't got a clue what's happening on the ground.

I've specialised in the HB market for years, & am soon when houses come empty, going to be avoiding HB/Universal credit.
And if other HB Landlords follow suit, there's gonna' be bedlam.

Why rent to someone where there is a high chance you ain't gonna' get your rent?
And the new rules of UC won't help u?

Michael Jones

8:51 AM, 1st October 2016
About 2 years ago

I had a pair of HB people from Essex in Cardiff, they did the paperwork with me ( AST ) and with the Council ( Benefits ) stayed a month , then did a runner after wrecking the house. The Council think they can walk away from paying me direct, after paying me for one week ( and sponsor these people in another property ). Its time to get tough ( and educate ) !

Amar Dev

9:03 AM, 1st October 2016
About 2 years ago

Reply to the comment left by "Robert Mellors" at "27/09/2016 - 13:34":

I sincerely hope that was not a 'tongue in cheek' comment.
I love your line of thinking. There is definitely merit in it.
It makes commercial sense.
I am a developer and have recently acquired a substantial property in South Yorkshire.
It is in excellent order and 'ready to go'.
Residential letting is one of my options for this site.
I would welcome any comment / feedback.
Any form of participation, also considered.
Just get in touch.
Amar

Luke P

10:16 AM, 1st October 2016
About 2 years ago

Michael, what have you done in that scenario? My LA say that unlike council tax (which is the tenants responsibility until the end of the fixed term), HB is due for wherever the CHOOSE to live (which can change at their whim)

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