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10:58 AM, 13th December 2021, About 2 years ago 56
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Councils warned today of a growing crisis in the private rented housing sector, with a sharp rise in landlords selling up or converting their properties into Airbnb’s. The District Councils’ Network that represents over 200 councils conducted a snap survey showing 76% of councils have seen an increase in landlords selling up properties.
Shortages are particularly bad in councils areas popular with tourists, with landlords switching their properties to more profitable short term holiday lets.
76% of councils surveyed by the District Councils Network (DCN) said that this had caused a rise in housing waiting lists, causing more people to lose homes, and making it harder to find permanent accommodation for those in need. 48% of these councils said they were now experiencing significant pressure on housing services due to this.
One council in a popular tourist destination in the south-west of England has reported a nearly 80% drop in the number of open market, long term rental accommodation available in their local authority area over the last three years, with many landlords leaving the market or providing short term accommodation for holidaymakers instead.
This news comes at the same time as a report by property agent Zoopla revealed that rents in the private rented sector have reached a thirteen year high, with a 6% increase in the last year. Councils are reporting that this rise is forcing some long term tenants to apply for hardship support from their local authority, with some council areas seeing rents rise to over a third higher than the average salary in their local area.
Councils are warning that the housing benefit many suffering hardship receive will likely not be sufficient in the longer term, as the Government looks set to keep Local Housing Allowance rates, which determines the amount of benefit received, frozen over the next year.
Landlords are leaving the market due to the impact of the pandemic, with tenants unable to afford their rents, landlords requiring to move into a property themselves and a rise in ‘staycations’, leading to a boom in the short term holiday let market.
The District Councils Network, who represent nearly 200 district councils across the country, is calling on the Government to increase investment in council housing and give councils the tools they need to create their own permanent housing for people in their communities in hardship.
District councils stand ready to work with the government to proactively increase the supply and quality of homes for benefit claimants, ensuring those in need can have a permanent roof over their heads in their local communities in the future.
Cllr Sam Chapman-Allen, Chair of the District Councils Network said: “This survey reveals a perfect storm of problems creating a crisis in the private rented sector across the country.
“Now the Government’s Eviction Ban has ended, this is a problem that could get worse, with councils also seeing increase in the numbers of tenants needing housing support due to increased evictions due to rent arrears.
“During the pandemic, district councils and the government worked together to help protect those who are most vulnerable through the Everyone In initiative, the temporary banning of no-fault evictions, and other measures such as furlough and the Universal Credit uplift.
“We need to urgently tackle this issue by permanently lifting housing benefit for tenants in private rented housing and for increase in Government support to invest in a renaissance of council house building to create homes, jobs and growth.”
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Gromit
11:33 AM, 15th December 2021, About 2 years ago
Reply to the comment left by Sally Wright at 15/12/2021 - 07:49
I think "Bristol Landlord" above has hit the nail on the head. It is all planned.
Gromit
11:35 AM, 15th December 2021, About 2 years ago
Reply to the comment left by Jo at 15/12/2021 - 08:00Either they are totally incompetent (possible) or it is been cynically planned (likely see "Bristol Landlord" comment above).
Graeme
11:51 AM, 15th December 2021, About 2 years ago
Reply to the comment left by Ann Shaw at 15/12/2021 - 10:58
This is part of what the government doesn't understand. From a financial perspective the residential rental sector is competing with other capital investment strategies. I have stopped buying single let properties as they are not competitive with other opportunities, e.g., shares, in-bond whisky casks. With the property value percentage increases likely to slow in the short term I am considering selling some properties in order to release the cash for alternative investment strategies. The government is heading towards a low income sector social and housing problem effectively "in-sourcing" a problem that has been managed by landlords for many years. One incremental concern is that central government delegates housing to a District level in the public sector hierarchy. They are at the same time reducing funding for County and District councils thereby not only in-sourcing a problem but concurrently delegating it to organisations who are increasingly unable to manage it.
Peter G
17:52 PM, 16th December 2021, About 2 years ago
Reply to the comment left by john glynn at 13/12/2021 - 11:22The Labour Party would not change these regulations and taxes to help the Landlord as they are on the tenant's side too, so it is lose:lose for Landlords.
The German system would help - it allows tenants to maintain the property themselves in return for a lower rent. This would remove risk and cost for landlords.
Peter G
18:03 PM, 16th December 2021, About 2 years ago
Meanwhile thousands of migrants - all needing accommodation - are crossing the Channel with French help, adding to the UK housing crisis daily. Macron will be very happy as he no longer needs to find housing for these sad people.
Peter
11:35 AM, 18th December 2021, About 2 years ago
Expanding on David’s point, I would think it’s likely that those selling up have no or smaller mortgages after years in the business, and those buying need the maximum amount of loan to value as a new investor. That would explain both sets of statistics
Julie
12:44 PM, 18th December 2021, About 2 years ago
Reply to the comment left by Bristol Landlord at 13/12/2021 - 16:27This is exactly what I was thinking! Spot on. The only other consideration is that the government don’t have a glue…. But I personally wouldn’t call them stupid! or out of touch with the industry. Boris may be a ‘bafoon’, but i see him as a very calculated and head strong man who will ‘get what he wants’ before having to step down … and move on with his corporate mates!!
SCP
14:07 PM, 18th December 2021, About 2 years ago
Reply to the comment left by Peter at 18/12/2021 - 11:35
My earlier point was that people write articles which unless explained are misleading.
What is the point of such articles?
To serve an agenda?
Keep the reader ignorant?
Excite the reader?
Certainly, not to inform, educate or illuminate.
Somebody mentioned his maths.
I can mention my spell at the LSE.
Where does it get us in the end?
bob the builder
15:02 PM, 18th December 2021, About 2 years ago
wow you would have had to been from the future to be able to predict this was coming! 🙂
MalcolmH
18:11 PM, 18th December 2021, About 2 years ago
To say that the government should have seen this coming is rather missing the point. The government actually wants all small PRS landlords out! So that corporate landlords, who are immune from the sort of financial traps and regulations, can take over. And it's working perfectly. It's what the corporates have been lobbying the government for. We all know how the World Economic Forum sees the world: "You will own nothing and you will be happy". The covid scamdemic is just a distraction. The master plan is hiding in plain sight!!