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10:56 AM, 13th October 2022, About 2 years ago 28
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Campaigners are warning that unless the government imposes an across-the-board freeze on rents and service charges in England, then private and social housing tenants will be urged to join a rent strike.
The warning comes from Social Housing Action Campaign (SHAC) which, along with other campaign groups, has written to the housing secretary Simon Clarke over the rent cap for social housing consultation – which ends this week.
The group also says that private rental sector (PRS) tenants need to be protected from ‘profiteering landlords’ and that the PRS should also see a rent freeze and a ban on evictions being imposed.
The consultation by the Department for Levelling Up, Housing and Communities (DLUHC) is aimed at finding out whether there should be a rent increase cap of zero – or 3%, 5% or 7%.
The government says it wants to install a maximum cap of 5%.
But the 5% cap would see the income of social landlords being reduced by £1.3bn next year.
And the National Housing Federation (NHF) has warned that without extra government funding, social landlords will struggle to build new homes – and maintain the properties they do have.
They have also said that supported housing would become unviable.
However, SHAC wants the government to freeze social rents, service charges and shared ownership rents for 2023-24.
The group says that any rise will lead to homelessness and worsen poverty for tenants struggling with the cost-of-living crisis.
They also want the re-introduction of the evictions ban that was unveiled during the Covid-19 lockdown.
Social housing rent rises are capped currently by the government, and they use the Consumer Price Index (CPI) of inflation plus 1% which is set every September.
In its letter to Mr Clarke, SHAC says: “Rents for council and housing association tenants were set to rise by 11% or more in April 2023.
“A 3-7% formula rent rise will still mean deeper poverty and the risk of homelessness for many, and a further burden for four million tenant households already facing massive bills for food, energy and other necessities.”
They say the government should:
The letter was also signed by Defend Council Housing (DCH), Homes 4 All, The New Economics Foundation, and Housing Action Southwark and Lambeth.
However, it’s also worth noting that private rental sector tenants are also being considered and the letter points out:
“We recognise that these issues also affect private renters and leaseholders and are working with others of all tenures to win a rent freeze, stop evictions, protect tenants from profiteering private landlords and leaseholders from increasing service charges.
“We need Government investment in more and better homes with secure tenancies and social rents.”
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Sheralyne Stamp
15:47 PM, 13th October 2022, About 2 years ago
So they want to abolish S21 then say we cannot evict on rent arrears alone.! well then surely you can evict under Breach of Contract which is what the government are saying. Am I correct? So if these people strike and dont pay their rent then they are in Breach of Tenancy so can be evicted on arrears alone Yes/No?
Mr.A
15:58 PM, 13th October 2022, About 2 years ago
Have these idiot "charities" explained that if tenants do not pay their rent they are in breach of their tenancy agreement, also their future is jeopardised as they will require a good reference for their next landlord after the inevitable eviction happens ...
I dont think they do explaine ,are they even capable of thinking more than one step ahead , currently they are trying to stop the damage they have caused over the years by causing more damage .
Most tenants will pay their rent, as most landlords will look after their tenants.
This may just show up the problem radicalised tenants just looking for an excuse not to pay, who in the long run will lose out due to the "charities " giving them very bad advice.
Mark Alexander - Founder of Property118
17:50 PM, 13th October 2022, About 2 years ago
Maybe the same tenants should also try a Council Tax Strike, a Gas and Electricity Bill Strike and driving away from the fuel pumps without paying and saying that's a protest move too?
Alex McHugh
18:16 PM, 13th October 2022, About 2 years ago
So nobody is proposing a mortgage rise strike, this just robs Peter to pay Paul, it’s never going to work
Frank Jennings
18:47 PM, 13th October 2022, About 2 years ago
Well they could try that, and of course many Landlords will not be able to then pay the Mortgage payments, which will then force the banks to foreclose and evict the tennants, and sell the house, probably at auction.
Ultimately it's an own goal, as the tennants will very quickly find out that the banks can move very quickly to eviction, if mortgage payments are not made.
The surviving landlords will of course then be able to raise rents even more due to the increase in demand, and the reduction in supply. Looks to me that many landlords will exit the game, once they find it's not viable as a business anymore. Tents and sleeping bags may become a big seller in the future, that's for sure. Cardboard boxes might become quite valuable too. Slum towns, here comes many more of the great unwashed.
Rob Crawford
20:41 PM, 13th October 2022, About 2 years ago
I would like to think that I have a good relationship with all my tenants and that they are intelligent and loyal enough not to follow such a call to strike. I am sure most landlords feel the same. I only rent to professionals and suspect this is the lowest risk sector. Those landlords who let to students and those on benefits are probably at a much higher risk of their tenants being influenced by this militant led idea!
Warren
21:25 PM, 13th October 2022, About 2 years ago
This is idiotic. Rents are rising due to a lack of enough rental properties. Campaigns like this is one of the reasons for this, as landlords are leaving the market, tired of being a political punchbag.
Grumpy Doug
22:44 PM, 13th October 2022, About 2 years ago
Reply to the comment left by Rob Crawford at 13/10/2022 - 20:41
All my students have home owning guarantors, most of whom I've met. I doubt any of them would welcome a CCJ due to their offspring's militancy.
Keith Williams
7:08 AM, 14th October 2022, About 2 years ago
When will the myth of rising rents causing increased homelessness be broken. No landlord will leave his property empty. Tenant leaves, new tenant occupies at higher rent, no change in number of properties or people housed. It's time to challenge these wet campaigners head on.
KarenS
10:36 AM, 14th October 2022, About 2 years ago
That has got to be one of the most moronic things I've heard this week.
Who the hell do these campaigners think they are.
Shall we strike if a given business pays them a fair market rate for their work?.....