Landlords fear the scrapping of s21 – and are selling up
3 years ago | 21 comments
Council to buy 300 homes to deal with landlord repossessions
12:01 AM, 21st March 2023, 3 years ago
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One council has revealed that it’s going to buy 300 homes, worth up to £600,000 each, in a bid to provide emergency accommodation for those being made homeless.
Councillors at Lewisham Council have been alarmed by the rapid rise in the number of families who are reporting as being homeless – or say they are at immediate risk of losing their home.
The council says that the most common reason given by people for becoming homeless was relatives or friends asking them to leave.
However, a council report also highlights that landlord evictions in the borough are also on the rise.
‘Private landlords choosing to increase their rent’
The report states: “There continues to be 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.”
The report goes on: “In 2019/20, this accounted for 19% of all [homelessness] acceptances which has increased to 26% in 2022/23 (year to date).”
Lewisham is also building 2,000 new homes from 2026 to help reduce waiting lists but now needs specific homeless accommodation.
By purchasing the properties outright, the council says it is hoping to reduce its emergency accommodation bill and deliver ‘consistent living standards’.
Spent more than £143,962 on hotels for homeless families
The council has not yet revealed how much it is setting aside to pay for the property purchases and last year spent more than £143,962 on hotels for homeless families – that was four times higher than was spent on homeless accommodation in 2020/21.
The council says that the number of people approaching it saying they have lost their home has rocketed in two years by 31% to 3,723 – up from 2,833.
In January, Lewisham says it was housing 2,780 families in temporary accommodation – a rise of 60% in seven years.
‘Many landlords report that they intend to sell their properties’
The council’s report also warns: “Many landlords report that they intend to sell their properties due to reduced cash flow caused by higher interest rates.
“Additionally, many landlords took the opportunity of the strong sales market during 2021, supported by the Stamp Duty holidays, to sell their properties.”
The report also highlights that all of London’s boroughs have average rents that are now higher than their pre-pandemic levels – with fewer landlords willing to rent properties at LHA rates.
And it adds: “This creates a funding gap that will only increase the limitation recharge unless new ways of funding and delivering services are put in place.”
New landlord licensing scheme proposed
Meanwhile, Lewisham Council has also decided to push ahead with its new landlord licensing scheme.
If approved by the Department for Levelling Up, Housing and Communities, it will cover an extra 20,000 households in the borough.
Lewisham says the scheme will improve the management and quality of privately rented accommodation in an area where one in four households are renting privately.
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Member Since March 2015 - Comments: 124
11:05 AM, 21st March 2023, About 3 years ago
“Councillors at Lewisham Council have been alarmed by the rapid rise in the number of families who are reporting as being homeless “…………
where have they been for the past few years whilst all the new legislation has been imposed on Landlords and housing benefit payments capped to lure Landlords to deal directly with them?
You couldn’t make it up
Member Since August 2016 - Comments: 508
11:29 AM, 21st March 2023, About 3 years ago
To look on the (possibly) positive side, at least Lewisham have suddenly acknowledged what has been staring all concerned in the face? May others follow?
Anyone remenber council housing? Some where I was brought up in Northumberland was not bad at all.
Member Since May 2017 - Comments: 765
11:37 AM, 21st March 2023, About 3 years ago
‘Lewisham Council has also decided to push ahead with its new landlord licensing scheme’
Well that will help – NOT
Prepare for higher rents and even more landlords selling
Member Since September 2020 - Comments: 16
11:50 AM, 21st March 2023, About 3 years ago
Let’s face it, sadly the country is in a state of serious decline brought on by these sort of issues and caused by moronic government policies, MPs and authority officials. A terrible decline of a once great nation.
Member Since October 2013 - Comments: 1642 - Articles: 3
11:54 AM, 21st March 2023, About 3 years ago
Reply to the comment left by JB at 21/03/2023 – 11:37
It won’t help renters, but it will help pay for the purchases!
Member Since June 2014 - Comments: 1564
12:06 PM, 21st March 2023, About 3 years ago
“Meanwhile, Lewisham Council has also decided to push ahead with its new landlord licensing scheme.”
Join the dots….
Member Since January 2015 - Comments: 1447 - Articles: 1
12:43 PM, 21st March 2023, About 3 years ago
Reply to the comment left by JB at 21/03/2023 – 11:37
I cannot see why the Licence fee means increasing the rent. It’s tax deductible. Yes you pay it but you pay less tax as its an allowable expense.
And you get it off your tax at the start of year one of the licence even though most licences last 5 years. So by increasing the rent to “cover this fee” you are actually making more money in the remaining 4 years and maybe paying more tax!
Member Since January 2015 - Comments: 1447 - Articles: 1
12:48 PM, 21st March 2023, About 3 years ago
Brilliant idea that some Councils are buying up property.
I gave the LA, that one of my rentals was in, first refusal.
It worked out market price after taking into consideration the works required ie new double glazing, new kitchen and bathroom (the tenants had trashed the solid oak German made kitchen units), redecorating and recarpeting.
And even better no estate agent’s fees.
Timescale: took 4 weeks from acceptance of their offer to completion. Helped I did my own conveyancing and as it was the LA no searches, or mortgage survey were necessary.
Member Since March 2022 - Comments: 365
1:04 PM, 21st March 2023, About 3 years ago
Maybe I am paranoid or over sensitive but this article seems to have a definite anti PRS slant. Take the title ”Council to buy 300 homes to deal with landlord repossessions” this implies that landlord repossessions are the major cause of homelessness while in fact they only currently account for 29% with the vast majority of homelessness being down to people living with friends and relatives being asked to leave. Non-biased alternative headline ““Council to buy 300 homes to deal with increasing homelessness”. Then there is the sub-heading “Private landlords choosing to increase their rent”, as if they have a choice faced with spiralling costs. Non-biased alternative “Faced with rising costs Private landlords are being forced to increase rents or sell up”. One of these rising costs of course would be the cost to landlords of a “New Landlord licensing scheme”.
Member Since January 2016 - Comments: 473
1:13 PM, 21st March 2023, About 3 years ago
Didn’t realise Lewisham was so flush with cash. Would be cheaper for them to rent than buy but perhaps some lender is offering generous terms on an irredeemable debt