Joseph Rowntree Foundation Report Of The Private Rental Sector

Joseph Rowntree Foundation Report Of The Private Rental Sector

15:05 PM, 27th November 2022, About 2 months ago 2

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Further to my last piece about the Rise of the Private Rental Sector, I have unearthed this Reform the private rented sector and open up access to home ownership and social housing, says JRF | JRF

One of the things it says is:

“………Setting a strategy for reducing the size of the PRS by rebalancing the position of first-time buyers and landlords in the mortgage market and discouraging property speculation. This could be achieved by reviewing the regulations that govern mortgage lending to prioritise lending towards those looking to buy for the first time over landlords alongside fiscal reforms to reduce speculation on property…..”

The PRS is under attack when all we are guilty of is taking advantage of Government policies set over the past four decades. If those policies change then we will have to change with them. We will because those of us that are successful did not become so by waiting for someone else to give us our assets and our acumen.

Some people are born into wealth of course but many of us have not had more money and opportunities through their hands than most of the people that went to the same schools and lived in the same streets growing up. We might have made different decisions, such as buying a flat rather than asking for a Council one. There was a risk there because if you can’t pay for it then it is repossessed and you don’t have the safety net of a Council tenancy.

I only recently discovered that Shelter don’t actually do anything practical to help house people. I wonder if people donating to them know that, if I was running a homeless charity with a comparable budget I would be using my influence to buy up flats/houses and put people in them at lower than market value rent. In other words my motives would not be profit driven. This is the entire crux of the matter. That housing has been incentivised to become a business venture.

It is all well documented and  you can watch the documentary PUSH, here is a trailer PUSH (2019) OFFICIAL TRAILER – YouTube  or you can read the reports to the United Nations here:

OHCHR | Financialization of housing

So, I think we can all agree with what has happened and some of us lived through every one of those policies and took advantage of them. That is the thing about incentives – the whole purpose of them is to drive behaviour!

Incentives work the other way as well and can encourage people not to work. I don’t think that  current government policies are helping poor people because we are getting more and more of them. The reason for that in my opinion is that there is not enough of a differential between what you get for working at an ordinary job and what you get on benefits if you have children. People can do arithmetic and if you can get your rent and Council tax paid and live just as well as you can if you work then why would you? I don’t think anyone should pay tax if they earn less than £20K a year. You must make work pay if you want less claimants.

Also, I hear a complaints from young people about how it is not worth the extra effort to earn more  or take on extra responsibility because by the time they pay fares or fuel to commute, tax, National Insurance, student loan repayments, pension, keep a roof over their heads and eat – the government have the nerve to ask them to make extra payment to their pensions which they are unlikely ever to see because the pension age keeps increasing. They are not keeping enough money at the end of the month to flourish and the cost of housing is beyond their reach unless they can call upon the bank of Mum & Dad.

So here we have two  more demographics for whom  current  government policies are influencing behaviour as well as our own. I don’t have the answers to it all but just like everyone else my decisions and choices relate to what works for me. It is human nature, if something is beneficial move towards it – if it is harmful move away. The human element is hardly ever considered it government planning it seems to me.

There is a huge difference in people with an entrepreneurial nature and others and that is that entrepreneurs play the hands that they are dealt. They do not whine that someone else has more Aces than them because they know that the next deal will be different. For every good decision they have made they have likely made a few that were not as good. It is called experience and you have to gain it yourself. Nobody can give it to you and you can’t give it to anyone else.



Comments

Martin Roberts

11:58 AM, 28th November 2022, About 2 months ago

JRF should 'keep up at the back'.

Government policy, and campaigning by Shelter, are already shrinking the PRS massively, just as they wish.

No doubt influenced by JRF's last CEO, Campbell Rob, who went to them from, er, Shelter.

Beaver

12:58 PM, 28th November 2022, About 2 months ago

Reply to the comment left by Martin Roberts at 28/11/2022 - 11:58
What the country actually needs to do at the moment is to create another housing boom: That needs to be a boom in housing that generates its own energy and collects its own water. It needs to do that because it will reduce our reliance on energy produced from non-renewable resources thereby increasing energy security and reducing our impact on the environment.

The majority of properties in the country are classed in Band D in an EPC system that doesn't work. Much of that needs upgrading. The two biggest reserves of wealth in the United Kingdom are residential property and pensions. So the smart thing to do would be to allow people who hold pensions to invest in residential property that is not dependent upon fossil fuels, and upgrading existing properties so that they can generate their own energy.

Realistically, first-time buyers are not going to be able to fund that. They have enough difficulty saving the deposit to put down for a mortgage.

There is nothing socially wrong with being a *good* landlord; good landlords want good tenants; good tenants also want and need good landlords because there is a shortage of housing. Anything that drives investment out of the housing market and creates a shortage of rental property will not help tenants.

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