NRLA warns banning upfront rent payments will hurt tenants
1 year ago | 12 comments
Council loses 156 landlord properties for homeless housing
12:01 AM, 16th January 2025, 1 year ago
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A London council says it lost 156 private sector homes being used for temporary accommodation last year due to landlords reclaiming their properties.
It says this is down to landlords exiting the market or wanting their properties back to leave the council increasingly reliant on expensive nightly paid accommodation.
Between November 2023 and November 2024, the council’s use of private landlord properties fell from 854 to 698 – 131 of those lost were landlords requesting their homes be returned which is, the report states, a ‘significant increase’.
The report to Lewisham Council’s housing committee states: “Both the economic downturn in the last few years and the changing housing market are resulting in an increasing percentage of private landlords choosing to increase their rent in line with market prices or choosing to no longer rent out their properties resulting in them disposing of the properties altogether.”
Impacted the council’s budget
This trend has impacted the council’s budget, with nightly paid accommodation identified as the ‘main driver contributing to our £12.9million forecasted overspend on temporary accommodation’.
The council currently has 2,826 households in temporary accommodation, with 1,481 residing in nightly paid accommodation, a substantial increase from 745 in April 2021.
Lewisham says it faces numerous challenges in procuring new properties to house those in need.
Its ‘procurement strategy’, which aims to secure 200 leased units by March 2025, has only delivered 49 properties to date.
The report acknowledged these struggles, stating: “Whilst procurement of temporary accommodation and private rented sector accommodation has been steadily increasing, it should be noted that this has been very challenging.”
Impact of the Renters’ Rights Bill
The report also highlights the impact of the Renters’ Rights Bill and states: “In the short term, the Bill is likely to introduce some volatility into the rental market and may reduce the supply of properties to rent as landlords could become more risk-averse about which tenants they will accept, and some leave the market entirely.”
The council also points to the benefit cap, which limits the maximum benefits some households can receive, which poses a barrier to moving on from temporary accommodation.
The council is implementing various measures to address these challenges, including a moves to prevent homelessness and re-settling households from temporary accommodation in the PRS.
However, the report acknowledges the broader context of the London housing market, pointing to research that reveals a big decline in the supply of private rented accommodation due to landlords selling properties to owner-occupiers.
Tags:
Benefit cap, housing crisis, landlord shortage, Lewisham homelessness, London Housing Market, Private Rented Sector, temporary accommodation
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Member Since February 2018 - Comments: 627
12:41 PM, 17th January 2025, About 1 year ago
Societal destruction continues, because this impacts councils budgets, it’ll push up Council Tax, property ownership would be denied by ‘ever higher property taxes’, conspiracy theory becomes evidentially fact.
Member Since March 2023 - Comments: 1506
1:15 PM, 17th January 2025, About 1 year ago
Reply to the comment left by Mick Roberts at 17/01/2025 – 11:12
Mick, I think what Lambeth are hoping is that the evicted S21 tenants will rent in non council properties – trouble with this is the rents will definitely be higher than what they are paying at the moment. In which case they may as well sit tight and be evicted hence becoming homeless and eligible for homeless accommodation. How is this going to help
Member Since June 2013 - Comments: 3237 - Articles: 81
1:34 PM, 17th January 2025, About 1 year ago
Reply to the comment left by GlanACC at 17/01/2025 – 13:15
Yes why can us simple landlords see and know what will happen, yet the Council with all their might can’t see the wood for the trees
Member Since June 2014 - Comments: 106
9:54 AM, 18th January 2025, About 1 year ago
Reply to the comment left by Mick Roberts at 17/01/2025 – 13:34
These kinds of reports will soon be seen around the country.
Landlords at the bottom of the market, where risks of tenants non paying are higher, will either withdraw from the market, or move up to a more stable market.
Councils will be left holding the can for very expensive temporary housing.
This argument is so basic that even the policymakers sitting in their ivory towers must know. They either don’t care at all, or think that the pain inflicted on vulnerable families is worth it for some other reason.
Member Since June 2014 - Comments: 106
10:21 AM, 18th January 2025, About 1 year ago
A close friend has over 100 units almost all at the lower end of the market. Since the beginning of the noise about the Reform bill he has been refurbing all properties with benefit tenants and moving out of that market.
This has been done at natural turnovers, but with the bill now looking like reality, he will be issuing mass S21s while he still can.
I expect that pattern to be repeated around the country.
The policymakers should have put in some kind of incentives in to keep landlords who work at the bottom of the market.
Now we see a blunt instrument going through parliment that will have a disproportionate effect on the poor.
Generation after generation of housing ministers, and they all seem so out of touch with realities on the ground.
Member Since September 2015 - Comments: 1013
11:00 AM, 18th January 2025, About 1 year ago
Reply to the comment left by David Mensah at 18/01/2025 – 10:21
This why s.21 is being abolished. Soon, as the number of rental properties falls, tenants won’t be able to move and Landlords won’t to upgrade properties or tenants.
Member Since July 2013 - Comments: 357
1:51 PM, 18th January 2025, About 1 year ago
I can’t think why . When so many London council brag how they are shafting landlords with huge fines penalties and now money repayment orders.
Member Since May 2024 - Comments: 46
2:38 PM, 18th January 2025, About 1 year ago
Reply to the comment left by Neil Robb at 18/01/2025 – 13:51
Imagine the uproar if it was a private landlord doing this and not a Labour council…
Member Since December 2024 - Comments: 2
2:47 PM, 18th January 2025, About 1 year ago
Reply to the comment left by Dino Saw at 17/01/2025 – 11:12
Couldn’t agree more! I’ve increased my rents for the first time in 12 years as it’s impossible for me to break even otherwise! I really feel for the tenants but sadly I also have high mortgage payments to reach to avoid repossession and having worked damned hard to achieve a half decent pension moving forwards, I’ll be damned if I’ll lose the properties. Starmer is killing this country already. God help us, let’s hope we actually survive four more years before they’re kicked out never to return!
Member Since January 2022 - Comments: 16
3:28 PM, 18th January 2025, About 1 year ago
What a shame the govt have filled so many hotels with others!