New partnership wants to know why private landlords won’t rent to councils

New partnership wants to know why private landlords won’t rent to councils

0:01 AM, 2nd September 2024, About a month ago 65

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A groundbreaking partnership has been launched to harness the potential of the private rented sector (PRS) to combat the homelessness crisis in the UK.

The collaboration between Crisis and TDS Group will focus on developing strategies to encourage PRS landlords to rent homes to those who are homeless.

Private landlords are seen as a potential solution to homelessness but 97% of councils say they struggle to get landlords to take on homeless people and families.

Official figures reveal a surge in homelessness across England and between January and March, a record 86,520 households sought homelessness assistance and were deemed eligible for support.

Also, the number of households living in temporary accommodation has risen by 12% compared to last year, with 17,750 individuals living in bed and breakfast settings seeing a 30% rise.

‘End homelessness for good’

Dr Jennifer Harris, the head of policy and research at TDS Group, said: “The government has rightly committed to developing a cross-government strategy to end homelessness for good.

“For all the challenges it faces, the private rented sector can play an important and positive role in helping to achieve this mission.”

She adds: “Working with Crisis, landlords and those who face homelessness we will build the evidence needed to demonstrate how best to improve access to stable, secure and decent rented housing for those most in need.”

Solution to the housing shortage

The PRS is seen as a potential solution to the housing shortage, with councils empowered to offer private accommodation to homeless applicants.

Recent research conducted by the TDS Charitable Foundation highlights the reluctance of private landlords to accommodate tenants housed via local authorities, with 46% expressing reservations.

The partnership between Crisis and TDS Group will involve several key initiatives:

  • Dedicated support: Specialist staff at six Crisis Skylight centres across the country will receive funding from TDS Group to collaborate with landlords and individuals facing homelessness, facilitating access to rental housing and promoting tenancy sustainability
  • Financial assistance: Individuals experiencing homelessness will receive support to cover the costs associated with establishing a home in the PRS. This includes funding for deposits, furniture and travel expenses for property viewings
  • Policy development: Research and evidence gathering will inform policymakers on the most effective strategies to support individuals at risk of homelessness in accessing the private rented sector.

‘Private rented sector is almost inaccessible’

The executive director of policy and social change at Crisis, Francesca Albanese, said: “High deposits and up-front rent payments, mean the private rented sector is almost inaccessible for people facing homelessness.

“Plus, unaffordable rents, a lack of social housing and high living costs are making it increasingly challenging for many low-income households to find and keep a stable home.”

She added: “Securing new ways to access private rental properties for our members is invaluable and why we’re so pleased to be partnering with the TDS Group to begin this unique initiative.

“We look forward to working with them to open more doors into secure rental properties and ultimately, helping more people out of homelessness for good.”


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Beaver

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15:23 PM, 2nd September 2024, About a month ago

Reply to the comment left by Simon F at 02/09/2024 - 15:11
Indeed it is a good answer. What your article says is:

"Given that such tenants are 30x more likely to default, we argue for mandatory rent guarantee insurance paid for the duration of the tenancy by the local authority or introducing agency."

The author of the article at the head of this post [The executive director of policy and social change at Crisis, Francesca Albanese] says: “Securing new ways to access private rental properties for our members is invaluable and why we’re so pleased to be partnering with the TDS Group to begin this unique initiative. We look forward to working with them to open more doors into secure rental properties and ultimately, helping more people out of homelessness for good.”

If you have a group of tenants who are 30X more likely to default then nobody can blame landlords for not taking them. Crisis could pay the mandatory rent guarantee insurance proposed in your article. But my guess is that "Mandatory Rent Guarantee Insurance" would be very expensive indeed for a group of tenants that are 30X more likely to default. I think the actuaries working with the insurance companies might just go "...er, no homeless people thank you."

So maybe Crisis should just pay the rent for these homeless people who are 30X more likely to default as it seems highly unlikely that any competent insurance company would touch these tenancies.

kim moore

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19:41 PM, 2nd September 2024, About a month ago

I attempted to help homeless people get into accommodation using a HMO and 2 B2L... Local authorities hounded me not to do it as I am not a registered provider.... Plus these people do cause more issues with property due to lifestyle and lower levels of responsibility to care for property due to their issues which either caused or were created by homelessness.
Now I have moved away form homeless as under HHRSH I am at risk from over zealous council PRS hunting me down rather than trying to work with me to assist them to maintain their tenancies.
For me.... Unless the law changes to stop hunting landlords homelessness will not improve.

Peter Merrick

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21:24 PM, 2nd September 2024, About a month ago

A lot of immigrants make better tenants than locals. As a business model, the only thing that makes sense is to rent to the person who you believe will be the best tenant available. This is, sadly, not likely to be someone who, whether or not though their own fault, did not manage to stayed homed. Such people very often need support that a private landlord simply can't offer alongside all their other obligations.

AnthonyJames

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21:54 PM, 2nd September 2024, About a month ago

A work colleague ofi mine rents to a small local homelessness charity. They are his tenant but they are free to sublet to a client of their choosing. The tenancy is a full repair and maintenance one, like a commercial tenancy, fixed for three years, after which either party can walk away. The charity is responsible for returning the property to him after three years in a condition that an independent inspector confirms is the same as three years ago, less fair wear an tear - as defined in advance, not by the charity picking and choosing.
He gets a fixed rent every month from the charity, not the subletting tenant, and those payments are insured, though they do not go up year on year, I believe, and the tent is about 5%-10% less than the market averagek. If the property is empty, that's the charity's problem: he still gets paid.
So, reliable insured rent, no maintenance or repair costs, no tenant-finding or tenant-management duties, and full restoration of condition at the end of tenancy. His principal variable and risk is interest rates, but that can be fixed too. Would you take this deal?

Jack Jennings

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22:53 PM, 2nd September 2024, About a month ago

I think it easy to confuse PRS housing as a solution to low income housing. They are not always the same. I want tenants who can afford to heat and care for my homes properly and dry their clothes properly without causing damp. Only a proportion of private rentals will be suitable or affordable for the lower end of the sector.

Bob Bobbington

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0:04 AM, 3rd September 2024, About a month ago

"I don't understand why more people aren't placing bets on Everton to win the Premier League! The odds we're offering are only a bit worse than those for Man City. I know they're bottom of the league but it's so unfair!

"What we need is a group of highly-paid professionals to work with bookies to ensure that more people bet on Everton."

Monty Bodkin

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5:52 AM, 3rd September 2024, About a month ago

Reply to the comment left by AnthonyJames at 02/09/2024 - 21:54
Sounds like another con targeting amateur mug landlords. Avoid at all costs.

What do the neighbours think about it?

GlanACC

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7:42 AM, 3rd September 2024, About a month ago

Reply to the comment left by Monty Bodkin at 03/09/2024 - 05:52
Anthony, might be OK for your friend but landlords rarely think of the neighbours. I do and hence with my remaining tenants I have hardly any issues. However next to one of my properties the landlord (a solicitor !) put in a scumbag and his 3 children stay there at weekends and school holidays (a 1 bed house). The kids run wild and have damaged my tenants car. I had to contact the solicitor to remind her of her obligations, she has now given the scumbag the boot and will be selling the property. The problem with a lot of landlords is they just think of the ££££ signs and not the consequences of their actions.

Beaver

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8:48 AM, 3rd September 2024, About a month ago

Reply to the comment left by AnthonyJames at 02/09/2024 - 21:54
I would have an open mind about this. For me it would depend upon the charity, the robustness of the contract with the charity, whether my lender would permit it, whether my insurer would insure it and what the insurance costs are. At the moment though I don’t need to accept a 5-10% drop in rent.

Knight Properties.

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15:17 PM, 3rd September 2024, About a month ago

Reply to the comment left by Beaver at 02/09/2024 - 11:11
Hi. "Beaver"

Would you be kind enough to elaborate more on your experience with your ex rouge tentant who worked for the council? I'm quite interested in your story because I've had many many problems with the council and and I absolutely despise them. They lie and cheat all day long. Even in court they lie.

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