Council to buy 300 homes to deal with landlord repossessions

Council to buy 300 homes to deal with landlord repossessions

0:01 AM, 21st March 2023, About A year ago 72

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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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Comments

Mick Roberts

13:55 PM, 25th March 2023, About A year ago

Reply to the comment left by Judith Wordsworth at 25/03/2023 - 07:55
Judith & Morag, I caught the back end of your conversation. I have words below that explain to people when they say Licensing doesn't cost the Landlord money.

Cllr Toby Neal (Lab) of Nottingham City Council , said: “Licensing schemes including Selective Licensing are an important mechanism to safeguard private tenants.
Mick Roberts says Selective Licensing will find some bad houses. Selective Licensing WILL increase rents on 99% more houses than than the bad ones they will find

Toby Neale says
We don’t believe there is any direct evidence that selective licensing has increased rents.
Mick Roberts says I have housed more of your homeless Benefit tenants over 26 years than any other private landlord and NOT ONCE have u rang the biggest private provider to Benefit tenants to ask me What have I done with rents.

Toby says
For a licence that lasts up to five years, this works out at around £11 a month.”
Mick Roberts says
What do tenants get for their rent increases that have ZERO problems? That already have a nice house?
Can the landlord pay £10 a month then?
Take me for example, at that £630 u mention above, will cost me over £57,000 just in your fee alone. How long have I got to pay that?
I don't even want my houses any more, I'm only keeping it for the tenants, so u can be sure I won't be paying for it.
So u do acknowledge it may cost the tenants £10pm.
Are u aware Benefit tenants in Nottingham can't get a house any more? Cause of Licensing?
When I pay this £57,000 in one go I presume? Is that it? No paperwork to do?
No form filling in?
Can u explain to my 68 year old tenant who has lived there for 20 years why she has to have inspections every 4 month's? And give her anxiety. Is she a criminal?

Tell u what, ring me tomorrow, I'll pay your £57,000 and I PROMISE to give zero tenants a rent increase if that is ALL I have to do. No paperwork. No form filling in. No inspections. No 100 hours sending u documents and forms.

Seething Landlord

15:13 PM, 25th March 2023, About A year ago

Reply to the comment left by Mick Roberts at 25/03/2023 - 13:55
Maybe you should offer to pay in the same way that they pay housing benefit i.e. four weekly in arrears, or perhaps they would like to pay 5 years housing benefit in advance.

Mick Roberts

15:17 PM, 25th March 2023, About A year ago

Reply to the comment left by Seething Landlord at 25/03/2023 - 15:13
Ha ha yes.
And I can recover this money if I think they've done something wrong in 5 years & go back the full 5 years.

Seething Landlord

15:20 PM, 25th March 2023, About A year ago

Reply to the comment left by Mick Roberts at 25/03/2023 - 15:17
Now you're getting somewhere.

Claire Smith

15:25 PM, 25th March 2023, About A year ago

Reply to the comment left by Judith Wordsworth at 21/03/2023 - 12:43
Tax deductible means that the landlord 'only' pays 80% of the cost. It doesn't mean that HMRC pay it for him. Obviously the landlord will then increase the rent if possible. If not, he will probably sell.

PH

15:30 PM, 25th March 2023, About A year ago

Reply to the comment left by Claire Smith at 25/03/2023 - 15:25
Yes, big difference between 'refunded' and 'tax deductible '.

Mick Roberts

15:39 PM, 25th March 2023, About A year ago

Reply to the comment left by Claire Smith at 25/03/2023 - 15:25
U not believe this.

I had my tenants writing in to the Councillors about Nottingham Imbecile Labour Council Selective Licensing. Councillor Linda Woodings replied that it doesn't cost her Landlord (Me) anything as it's tax deductible. Ooh, we then played games with her & she stopped replying. She said I know who your Landlord is as I've had many emails from his tenants & they all go along the same path.

Parts of the emails from my tenant:

Linda,

I don't think you are reading my letter properly.
Did you miss this question?:
I've been told the License fee is now £890. As my Landlord has lots of times bought houses for his tenants in the past & he says now Any new houses he buys has to be subject to this £890 for a 5 year License even though he will only get time remaining to Aug 2023, so not even a 3 year license now.
That £890 alone equates to an extra £6pw on top of the rent.
Is the License fee now £890 if my Landlord wishes to buy a house for us?

What about Landlords that have Licensed their property. What do they get in return?

I can't swap into a newly bought house with no extra charge, nor an existing one as all his have to go with Letting Agent now because of Licensing conditions.

If the tenant isn't Licensed, why do I now have to have inspections when I didn't before?

Are you saying Licensing costs nothing as they can claim it back from the tax payments? As my friend is an accountant & that is in-factual. You deduct the License fee from your earnings, so u pay 20% of £890 less tax.

Linda, you've also not answered this question:
Why do I have to be inspected every 4 months?
My Mum lives in Council House, she don't have to be inspected. It's like we now being treated as criminals cause u got some bad tenants somewhere that's nothing to do with me.

I ask all this because I've had that many friends go homeless because of this Licensing, when before Licensing, there was no problem.

Why has the Landlords with good houses had to pay this Licensing fee anyway?

Linda,

Your email to me dated 18th Jul 2020.

Can I ask you what isn't correct? I've been told the License fee is now £890. As my Landlord has lots of times bought houses for his tenants in the past & he says now Any new houses he buys has to be subject to this £890 for a 5 year License even though he will only get time remaining to Aug 2023, so not even a 3 year license now.
That £890 alone equates to an extra £6pw on top of the rent.
It's a fact I've got to pay more rent if I wish to move. It's all over the tenant Facebook forums about this Licensing. It criminalises & makes more expensive to rent for those of us that haven't got problems.

Why would I want a rent repayment order when I haven't got a problem?

My Landlord used to let us swap houses when we asked him. He says he can no longer do this cause of licensing and the conditions and paperwork and form filling. He says we can still swap, but now have to sign with his letting agent as he can't cope with the extra work load from Licensing. And the Letting Agent charges alone are approximately £70pm, all equating to higher rents, plus me being tied to higher stricter Letting Agent rules, not being allowed to paint my own house etc.

So straightaway with them 2 charges above, that's an extra £94 pm that I have to pay that I or the Landlord get nothing in return? How is Licensing helping us that don't have a problem?

All the tenants with good houses and good Landlords know this Licensing has made it much more expensive to rent and virtually impossible to move if we on benefits. Licensing insist a Landlord can't take us without references. I'd have never got this house if that was the case.

Bulwell 3 beds 2 years ago before Licensing was £525pm, they now £650+.
All Landlords you talk to say it's not just the cost.

Why do I have to be inspected every 4 months?
My Mum lives in Council House, she don't have to be inspected. It's like we now being treated as criminals cause u got some bad tenants somewhere that's nothing to do with me.

Back to my Overcrowding letter, can I now take this to the Council & they will have to give me a 4 bed house? As the Council have implied I am overcrowding, so is this evidence enough for the Council to give me bigger house?

Rod

15:55 PM, 25th March 2023, About A year ago

Well done, Mick.

Keep it up.

Here's a few more questions for them

How many properties which have applied for a licence have they inspected?
How many have they found (genuine) issues with?
What action have they taken?

How many properties which have failed to apply for a licence have they inspected?
Of these, how many had issues?
What action have they taken?

Mick Roberts

16:24 PM, 25th March 2023, About A year ago

Reply to the comment left by Rod at 25/03/2023 - 15:55
Depends where u read, & who replies.

Rough figures from me, was as of about 2 years ago, they inspected about 600 houses of 20,000 & found about 200 houses with faults. 1% I repeat 1% had faults. Means 99% of tenants had rent increases for nothing.

Ha ha yes good questions, we don't know. They have fined some Landlords about £6,000, + rent repayment order £6,000 when knocked on doors to find unlicensed property & guess what-This Landlords house had ZERO faults. 12k fine for paperwork error. Needless to say, next tenants rents much more expensive.

JB

19:33 PM, 25th March 2023, About A year ago

Reply to the comment left by Mick Roberts at 25/03/2023 - 16:24
Steady on Mick. If those 600 properties were selected at random and 200 had faults, that's 33%!

Maybe they selected the worse 600 or maybe the faults were spurious?

When mandatory licensing came in, my property had an inspection and before a license was issued I was told to clean off a miniscule bit of mold from the bathroom grout. I'd had really great students living there for 18 months and mold was definitely not a problem!

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