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
33
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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 September 2015 - Comments: 1013
4:15 PM, 18th January 2025, About 1 year ago
Reply to the comment left by 54PreA at 18/01/2025 – 15:28
If they can put illegals in hotels why not the homeless?
Member Since October 2013 - Comments: 1630 - Articles: 3
4:28 PM, 18th January 2025, About 1 year ago
Reply to the comment left by Neil Robb at 18/01/2025 – 13:51
Plus that nice little earner, selective licensing. Fewer private landlords, less licensing.
Member Since January 2022 - Comments: 16
5:25 PM, 18th January 2025, About 1 year ago
Reply to the comment left by Gromit at 18/01/2025 – 16:15
Indeed…or anyone needing emergency housing, and why not all those the council deem as making themselves homeless or after sect 21/8 and don’t leave choosing us thousands to evict?!
Member Since December 2013 - Comments: 179
9:36 PM, 18th January 2025, About 1 year ago
Reply to the comment left by NewYorkie at 17/01/2025 – 12:36
“Labour is appalling, but the Tories started the rot with S24. Who do you think will be different?”
Simple answer- Reform
Member Since December 2013 - Comments: 179
9:59 PM, 18th January 2025, About 1 year ago
Reply to the comment left by Dino Saw at 17/01/2025 – 11:12
I am following the same pattern.
I have protected my tenants by absorbing a vast amount of the costs imposed on me in the last 10 years who were already enjoying cheap rents-stupid me I know- but with all this I’ve had enough. I’ve also tolerated a number of tenant’s who are proving ‘not the best’ until they chose to leave.
It’s tough on the tenant’s, but for the last year I have sought to proactively oust any less than great tenant- they pose a liability to me moving forward.
Also you talk of a 20% increase being harsh? One of my tenants calculated her rise at 43% for me. Stay or go, your choice have been the options. That sounds harsh, but as I pointed out to them that’s still at least £100pcm less than market as a loyalty discount to them if they want to stay. I notice they’ve decided to stay by the way.
Ive operated a very soft approach for my tenants for over 30 years, but I’m doing a ‘hard reset’ here to set me up for the ‘new world order’.
It’s horrible… but necessary. I tell all my tenants to blame the government (past and present) for creating this situation.
There was absolutely no need for me to do this if it wasn’t for the government.
Member Since May 2014 - Comments: 616
10:26 PM, 18th January 2025, About 1 year ago
Reply to the comment left by Saul Smart at 18/01/2025 – 21:59
I agree there are a lot of us in the same situation.
I have always had a good relationship with my tenants and they know that if there is a problem it is dealt with asap but the rents have not gone up enough even though the overheads have increased massively.
This has to change.
The government are clueless about the true state of the PRS and the damage especially to tenants that their policies are causing.
Member Since October 2013 - Comments: 1630 - Articles: 3
10:19 AM, 19th January 2025, About 1 year ago
Reply to the comment left by Stella at 18/01/2025 – 22:26
Governments of both colours have turned thousands of caring, considerate, generous landlords into hard-nosed business owners.
You can argue that we should have been less generous over the years, but I think we’ve now reached the point of no return. My kids learnt if they pushed, pushed, pushed, there came a point where I would react, and they wouldn’t like it.
Member Since June 2013 - Comments: 3237 - Articles: 81
10:38 AM, 19th January 2025, About 1 year ago
Reply to the comment left by NewYorkie at 19/01/2025 – 10:19
Saul, Stella, New Yorkie,
All say it how it is:
Governments of both colours have turned thousands of caring, considerate, generous landlords into hard-nosed business owners.
It used to be
Service your boiler once a year
Tell me when something wrong.
And it worked. Result cheaper rents happier tenant.
Landlords Landladies do more now for the Govt Council Tax people Letting Agents Legionella’s etc. in fact 20 times more than the tenant asks for. And it’s costing tenants in higher rents & our Mental Health, so much so we packing up.
I’ve decided I’m gonna’ try & sell most of mine next 2 years, to Landlords Landladies to hopefully keep em in.
Member Since March 2023 - Comments: 1506
12:13 PM, 19th January 2025, About 1 year ago
I sold one just before the pandemic to a middle aged chap who wanted to be a landlord – I notice its up for sale again.
Member Since April 2017 - Comments: 163 - Articles: 1
6:35 PM, 19th January 2025, About 1 year ago
I find this so laughable and pathetic. Councils in South London have made it more and more difficult for us to rent properties to people including arbitrary minimum room sizes which for me has meant I’ve had to sell off some properties and evict all the tenants. And then they wonder why there’s a shortage of property.