Council says housing crisis is worsening as landlords exit market

Council says housing crisis is worsening as landlords exit market

9:44 AM, 13th February 2024, About A week ago 29

Text Size

Thurrock Council has revealed the growing challenges it faces in providing housing help to its residents, as the cost-of-living crisis and the exit of landlords from the private rental market put pressure on the system.

The council’s housing service has seen a 22% increase in homelessness demand compared to the same period last year and a similar rise in temporary accommodation placements.

In a homelessness update this week, Thurrock attributes this to a combination of factors, including higher rental costs, lower Local Housing Allowance rates, inflationary pressures on household budgets – and fewer landlords with homes to rent.

‘The number of landlords leaving the market’

Christopher Wade, the council’s head of housing solutions, said: “The council’s ability to mitigate against increases in temporary accommodation, and to discharge appropriately into the private rented sector is significantly impacted by the number of landlords leaving the market.”

He also warns that the Government’s aim of moving asylum seekers from hotels is also adding to the demand for social housing.

Mr Wade adds: “The council is looking at alternative methods of procurement for discharge properties, in particular in the private rental market, in order to diversify our offer to landlords, and recently signed up to Rentsurance, a rent insurance scheme which can cover non-payment of rent up to £2,500 per month for an annual premium of between £350 and £470 per annum.

“This is being offered to landlords as an incentive in place of the financial one, or else in tandem with a reduced financial offer to maximise impact.”

London councils utilising the town’s private rented stock

Thurrock is also seeing, the report highlights, a growing trend of London councils utilising the town’s private rented stock to house people on their social housing waiting lists.

The council is now looking at a housing budget overspend of £468,000 to deal with its growing demand issues.

Councillors will also be told that there is a high turnover of experienced housing officers from Thurrock being attracted to higher salaries with nearby London authorities.


Share This Article


Comments

Fed Up Landlord

10:00 AM, 13th February 2024, About A week ago

But according to Angola Raygun, our soon to be Deputy PM, there's
" loads of landlords out there" and "we're not selling up"

Mmmm.........

Cider Drinker

10:07 AM, 13th February 2024, About A week ago

Needs some ‘root cause analysis’.

The root cause isn’t landlords leaving the sector. People that chose to be landlords in the past are being driven out by the ever-moving goalposts. It feels like the government and local authorities are purposely targeting landlords in an attempt to drive them out of business.

It’s working.

The root causes include a failure to control house price inflation when interest rates were too low (and for too long), various financial disincentives, over-regulation, net migration and too many rights for bad tenants to exploit.

Mike231

10:07 AM, 13th February 2024, About A week ago

Well said Einstein, as if we didn't know that one, with the Labour Party to be in power at the end of this year early next, they had better get ready for a total collapse of the PRM as Landlords sell up!

Reluctant Landlord

10:17 AM, 13th February 2024, About A week ago

in some areas I purposely boycott advertising my properties to let in that council area - and advertise in the adjacent one. My small way of two fingers up to the council who introduced SL in my area! Tenants on their housing list stay put.
Adjacent councils are often higher LHA areas so they will chuck more money/incentives at you if you take people off their housing list...because they have no accommodation of their own....

David100

10:30 AM, 13th February 2024, About A week ago

If landlords leaving the market are causing a crisis, then why dont the council buy up the property those landlords are selling. And then they can show us all, what great landlords THEY are.

Dylan Morris

10:35 AM, 13th February 2024, About A week ago

What I can’t work out is where they’re going to house another 1.2 million, doctors, nurses and engineers this year.

Chris @ Possession Friend

11:07 AM, 13th February 2024, About A week ago

Reply to the comment left by Cider Drinker at 13/02/2024 - 10:07
... ' Root cause analysis ' - its not Rocket - science,
The root cause is the Long Cold war against landlords and the cherry [sic] is the Renters Reform, which I wrote about here last week.

The government are well aware of the consequences of their actions, calling them ' Unintended consequences.'

Politicians believe that Tenants are so thick as to believe that the Shelter et al campaigns are helpful to tenants, that they won't realise the harm and still vote for the party that introduced them.

Blodwyn

11:15 AM, 13th February 2024, About A week ago

Thurrock haven't re-invented the wheel, this has been a repeating refrain for so long? But they have seen the moving finger and may tell their colleagues?

JB

11:32 AM, 13th February 2024, About A week ago

Renters and homeowners alike can look forward to more councils becoming bankrupt as the temporary accommodation bill cripples them

Michael Booth

11:42 AM, 13th February 2024, About A week ago

25 years experience of the prs tells me to get out , sl, rent reform bill ,tax, this government, and the future incumbent liebor party, all contribute to the disaster called the prs, letssee how they come with thousands if not millions homeless , you reap what you sew.

1 2 3

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Tax Planning Book Now