76% of councils report an increase in landlords selling up and warn of increased waiting lists

76% of councils report an increase in landlords selling up and warn of increased waiting lists

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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Comments

Old Mrs Landlord

9:07 AM, 27th December 2021, About 2 years ago

Reply to the comment left by chris at 23/12/2021 - 12:44
Interesting point, I had not considered the aspect of ongoing transfer of wealth between regions by the current rash of landords buying in the North, only the initial S/N transfer of capital. Likely to play out as the direct antithesis of the government's levelling up aim I should think, as much of the capital will be created by the lenders but the rents will come from the labour of northen tenants as London sucks in ever more of the product of human labour in other parts of the country. ..

Mike D

12:09 PM, 30th December 2021, About 2 years ago

Hilarious isn't it....
As soon as S24 came out in 2015, landlords said it would happen.
Then they added
No tenant fees
Electrical inspection
Covid non eviction
Councils non cooperation, fines, empty home refurbishment
It's an endless list of legislation, cost and risks....
Incompetence, why no one would see it coming....

RichDad

13:16 PM, 30th December 2021, About 2 years ago

*Minimum room sizes* - another poorly-thought-out policy idea with “unexpected” consequences.

When the Govt increased minimum room sizes to supposedly “improve living standards”, thousands of previously affordable and comfortable-enough bedrooms were taken out of the market overnight, especially in HMOs.

Landlords were left with fewer lettable rooms to spread their fixed costs, so the prices of their other rooms had to go up. The larger rooms were already more expensive (because larger!), so were then pushed even further out of reach of those who could only afford a smaller room.

Where do those at the lower end go, if they cannot afford the smallest “compliant" room? Either to the councils for social housing, or to the “rogue landlords” for rooms that they can afford.

Then the added demand with reduced supply pushes up the rents of those larger rooms, causing affordability issues at the next level up as well. This inflation then ripples outwards along a city’s commuting routes too.

It’s rather like the “friendly fire” euphemism!

Grumpy Doug

14:34 PM, 30th December 2021, About 2 years ago

Reply to the comment left by RichDad at 30/12/2021 - 13:16Excellent point. When HMO licensing was extended to all 5 beds, I lost 10% of my rooms that were just below minimum size. I spread the cost across all the others, unsure if they could take it. I needn't have worried as all the other landlords were doing the same. Along all the other costs associated with that policy, HMO rents increased like crazy and haven't really stopped

LaLo

16:06 PM, 7th January 2022, About 2 years ago

One problem with selling up is CGT! I sold a property because licencing and £30,000 fines coming in and so did many others as it's just not worth the worry, LLs are hammered from all sides! Councils government subsidy has gone so they have to get money from somewhere. im very fussy who I let too - including dogs as one tenant left a mountain of dog ........ up to the ceiling- never again!

David Barnard

23:38 PM, 29th May 2022, About 2 years ago

Reply to the comment left by MarkT at 13/12/2021 - 11:28
Everyone is saying the same, so I wanted to put an alternate view. Errrr no Can’t think of a thing.
With interest rates set to rise, rents will have to rise still further.
The past 10 years of regulation and tax changes has not helped renters.
Going back 10 years would be a great move forward

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