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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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MalcolmH
19:40 PM, 18th December 2021, About 2 years ago
Totally agree with you Bristol Landlord, except that the plan is much bigger and worldwide. Beware of the government's project fear!
Badger
10:44 AM, 19th December 2021, About 2 years ago
Reply to the comment left by Peter G at 16/12/2021 - 17:52
You're kidding, right?
In my almost 40 years in the business my experience of allowing tenants to perform their own maintenance (or decoration) has always been UNIVERSALLY bad.
God forbid we ever get to the point where a lower rent is required to be offered in return for such wholesale property destruction!
Graeme
11:43 AM, 19th December 2021, About 2 years ago
Reply to the comment left by Badger at 19/12/2021 - 10:44
That's my experience as well. Sometimes tenants don't report an issue, try to fix it and make it worse.
Pixie Props
16:40 PM, 19th December 2021, About 2 years ago
Yes, Bristol Landlord is very accurate in his assessment and one that I can share.
When they stopped paying landlords housing benefits direct and expected benefits tenants with no financial savvy, Bank accounts, driver license etc to responsibly start managing their own affairs, it was clear we were at the start of uncharted turbulent days. However this was remedied by refusing benefit tenants. Pre-empting the LHA nonsense. Who rents to LHA claimants these days?
At this time, with the onslaught of new regulations I also came to the conclusion small landlords were not flavour of the month to government and could expect a lashing. They assumed we were milking the public purse and could do it better themselves with the help of Pension Companies and vandals like Goldman Sachs to keep monies inside the crooked system all for themselves.
This is why we never get a competent housing minister. It's hard to keep track of them as they spin through the revolving doors set in motion by Gavin Barwell and the other responsibility dodging lap-dogs.
Taken nearly 5 years but I am down to just 2 houses now and wondering what to do with my new funds? I'll probably re-discover how to enjoy myself. The last 20+ years have been interesting I have learnt a lot, got experiences and qualified to do the job.
Carole Wicklow
18:14 PM, 19th December 2021, About 2 years ago
Reply to the comment left by Peter G at 16/12/2021 - 17:52
We only have three BTLs. One has been burnt to the ground by the tenant cleaning the lawn mower in the garage (yes, me neither). Another tenant dragged an armoured cable from the shed across the garden and rammed it up through the back of an outside socket - a spur on a spur according to the electrician who failed the house's statutory electric test costing us £300. The third tenant took a storage heater to pieces as it had stopped working (it was the switch that had broken), has broken the stop-cock and vandalised the water board's meter.
I really can't imagine why you would think it is a good idea for a tenant to maintain a property - they can cause enough trouble when they are not allowed to do so!
Mick Roberts
7:03 AM, 20th December 2021, About 2 years ago
Reply to the comment left by Badger at 19/12/2021 - 10:44
Ha ha yeah,
I've often agreed with tenants to let them do their own maintenance for cheaper rent if they struggling with top up. Took me 24 years to realise they don't stick to their word though. House gets worse & now we han't got the money to fix it cause they han't been paying the correct amount of rent.
Mick Roberts
7:03 AM, 20th December 2021, About 2 years ago
Reply to the comment left by Pixie Props at 19/12/2021 - 16:40
Yes Pixie, if some of us big Benefit Landlords won't take 'em any more, then there's no hope. Govt & Shelter needs to come talk to us. Solutions are easy.
Lee Bailey
8:43 AM, 23rd December 2021, About 2 years ago
Reply to the comment left by MarkT at 13/12/2021 - 11:28
Utterly agree, I'm about to sell mine too.
Nomad Capitalist - Go where you are treated best.
chris
12:44 PM, 23rd December 2021, About 2 years ago
I don’t think the government are the council’s have really seen the full impact. we are selling a portfolio most interested is coming from London based companies we are in the north when we sell it will probably take over 300k a year out of the city and into London and that’s just mine I know of other landlords doing the same
Jane Tomlin
14:12 PM, 25th December 2021, About 2 years ago
Reply to the comment left by Carole Wicklow at 13/12/2021 - 19:26
I have been asked by the Government Department for Levelling Up (DCLOG?) to fill in a questionnaire from my viewpoint as a landlord. I am presuming that they got my name from YouGov. Maybe the Government are listening?