Property supply to lower end of PRS – Julie Rugg thanks Property118 contributors

Property supply to lower end of PRS – Julie Rugg thanks Property118 contributors

12:11 PM, 24th June 2021, About a month ago 4

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Last year, we sought help from Property118 to make contact with landlords who were willing to help us with our research. We were overwhelmed with responses, and I am here taking the opportunity to thank everyone who got in touch.

Our research aimed to understand whether there is a sustainable supply of property to the bottom end of the private rented sector. To answer this question, we needed to get a better understanding of the landlords who routinely let to people on lower incomes.

We interviewed 55 landlords, who very kindly talked about their financial and management decisions in a great deal of detail. The insight gained from the interviews has told us a number of things.

The research underlined the fact that it’s always a mistake to generalise about ‘small’ landlords. We were able to interview landlords at different ages and at different stages of portfolio development. We have been able to refine a classification of landlord types that will make it easier for us to understand the impact of a range of different types of policy.

It is clear that the size of holdings is not necessarily a great indicator of professional intent. Many highly experienced landlords have been selling down and now own just a small handful of properties. At the same time, it was also possible for landlords to expand over-rapidly without necessarily acquiring the expertise to manage their portfolios.

Investor landlords often brought their own workplace competencies to letting property. Portfolio landlords were often running as effective small family businesses.

It is clear that landlords do not regard the lower end of the PRS as a single market. Landlords have preferences amongst lower-income tenants. There are parts of the country where rental stagnation means that the local housing allowance is relatively competitive and where low house prices make for attractive yields. Some landlords were targeting this opportunity and expanding their holdings in these places.

The introduction of Universal Credit had an impact on landlord letting preferences. Some landlords were stepping away from this market, largely because of problems with securing direct payments and because of the loss of a valued working relationship with the local housing benefit office. In other cases, landlords were more actively targeting tenants whose vulnerable status guaranteed a direct rent payment from the offset.

The report concluded that, for much of the country, the supply of property to tenants in receipt of housing benefit is diminishing. This reduction is compounded by the fact that a generation of ‘baby boomer’ landlords is now ageing its way out of the market and is not being replaced at the same rate by younger, new landlords.

It has not been possible to cover all the findings in the report here. Find out more about the research, including a copy of the report to download, at:

https://www.york.ac.uk/chp/news/2021/rented-sector-supply/

Julie Rugg, University of York

 



Comments

by Chris @ Possession Friend

14:03 PM, 26th June 2021, About a month ago

Surprised any Landlords gave any time to Rugg, given her excessively critical writing on PRS Landlords !

by Monty Bodkin

15:11 PM, 26th June 2021, About a month ago

Reply to the comment left by Chris @ Possession Friend at 26/06/2021 - 14:03
This report isn't critical of landlords, it just tells it like it is.

It is one of the best I've read in a long time and highlights the inevitable consequences of sustained landlord bashing.

Organisations that claim to speak for tenants would do well to take note.

by Freda Blogs

15:38 PM, 26th June 2021, About a month ago

Reply to the comment left by Monty Bodkin at 26/06/2021 - 15:11
I agree. It’s the first ‘official’ and objective narrative that we’ve seen in a long time - that tells it how it is, and I for one am pleased to see it.

Let’s hope that those in positions of influence or on the PRS negativity bandwagon will read it and reflect.

by Chris @ Possession Friend

19:26 PM, 26th June 2021, About a month ago

Okay Monty, Freda, I've spent last few hours reading the latest report ( linked ) ' Property Supply to the lower PRS by Rugg.and Wallace.
I accept its a lot less vindictive against the PRS than
" The Evolving PRS : Its Contribution and Potential " Rugg and Rhodes, 2018.
But don't forget who paid and sponsored this research, Nationwide Foundation, funded by Shelter and one of 20 members of the recently formed Renters Coalition. I find the latest from Rugg does recount Landlord horror stories but doesn't 'stick-the-knife-in' where appropriate to Govt for the UC system effects, and certainly doesn't mention the role tenant support groups have played in actually closing the lower rental market down for many. Rugg could hardly do that given the sponsors.
I have spent the last week doing a Response for a landlord of a single property, that was her home, where she was unaware that the Council had brought in an Additional Licensing scheme. Alas, one of her tenants was, or became aware and is bringing a RRO against her, supported by a so-called Tenant support group ( kindly taking a 30% cut of the RRO achieved )
Consequently, it was in this tenant representatives interests to slag-off private landlords with irrelevant generalities, to the extent that a 17 page publication from Shelter and a 4 page excerpt from Rugg's 2018 publication was included. in the application./p>
Amongst some highlighted text, was ;
A shadow PRS, illegal rent and sub-letting, and 'most worrying is that the evidence tells us there is a growing slum tenure for PRS households on low incomes who's needs are being neglected.'
Anyone who attacks Landlords,( unless they are a very Tiny minority of Criminal landlords ) attacks me and I take the opportunity to return fire as some will have no doubt seen.


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