Manchester’s temporary accommodation up nearly 500% in 5 years

Manchester’s temporary accommodation up nearly 500% in 5 years

14:52 PM, 11th December 2018, About 3 years ago 14

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The Manchester Evening News recently published an article on the cost – and dire state – of temporary accommodation provided by the council. Click here

“Lauren Edwards, team leader at Shelter’s Manchester branch, has seen her family casework double in 12 months, to just under 700 last year.

She says ‘section 13’ notices, when landlords evict tenants at the end of their 12-month lease in order to put up the rent, are becoming an increasingly major factor – as well as ‘section 21’ evictions, when the landlord simply wants the house back, often to sell it.

Lauren stresses rising rents in south Manchester are not confined to the traditionally ‘posh’ areas like Didsbury and Chorlton.

“It’s happening in places you wouldn’t necessarily expect, such as Moss Side, Hulme, Rusholme.”

As a result, the council has seen rocketing numbers of families coming through its door, particularly from south Manchester.

After first placing them in a bed & breakfast or hotel, it will then move them into temporary housing, usually provided by a private letting agency receiving a fixed rate of more than £200 a week in rent.

Manchester council’s expenditure on such accommodation has risen six-fold in the past five years, according to its FOI response: from £1.6m to just under £10m”

Also:

“Manchester council spends a lot on bed & breakfast accommodation for homeless people. In 2013, its hotel bill was £650,000. Five years later, it is £3m.”

So the combined total has gone up from £2,250,000 to just under £13,000,000, an increase of 478% in five years.

Landlords are selling up or putting rents up, and the poorest people are being made homeless. This was predicted in July 2015 when Section 24 was announced by George Osborne. A milder version had been introduced in Ireland; it was repealed this year because of increased homelessness. Click here

When will our government come to its senses and repeal Osborne’s lunatic tax?



Comments

by NW Landlord

9:17 AM, 15th December 2018, About 3 years ago

That’s exactly what I believe aswell mark they want limited company landlords and they are easier to police and give a more professional feel to the industry. Think I will start buying again next year been on hold for 3 years waiting to see how the land lies.

by Mark Alexander

9:42 AM, 15th December 2018, About 3 years ago

Reply to the comment left by NW Landlord at 15/12/2018 - 09:17
I think there will be a lot of buying opportunities presenting themselves over the next few years as the small timers and over leveraged cash strapped people who have nowhere to turn bail out or go bust.

Bide your time, be a predator 😉

by NW Landlord

9:49 AM, 15th December 2018, About 3 years ago

Defiantly we may start up our advertising campaign again was really successful when the credit crunch hit

by RichDad

17:23 PM, 15th December 2018, About 3 years ago

Reply to the comment left by Mark Alexander at 15/12/2018 - 09:42
Landlords leaving the PRS are likely to be selling properties in unsatisfactory states of repair (s24 will have taken away their cashflow to spend on repairs and upkeep).

That kind of property may suit a few of the first time buyers that Osborne et al claimed to be helping, but only those with the skills and some spare time and surplus cash to pay for materials etc. They won't get the best financing on a run-down property until after they have improved and then refinanced it. This doesn't seem to me to be of interest to a big segment of FTBs.

Builders could very likely be interested, with the aim of a quick refurb and resale. FTBs would be buying a nice property, but at full whack after the refurb.

Other landlords? Yes, if the numbers stacked up for rentals, which probably means HMOs and SA if they are anywhere near big cities.

That's why I agree entirely that the aim of s24 is to force smallest landlords out of the sector, and others from Personal tax regime to the much more tightly controlled Corporation Tax regime instead (plus Companies House control too).

I wonder how many MPs are themselves landlords? They must be keeping their heads below the parapet to avoid being accused of being one of those "rogue landlords" too.


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