Covid-19 Bounce Back loans for property businesses16:06 PM, 5th May 2020
About 3 weeks ago 46
Office Blocks, converted to Residential Occupation, fulfil an immediate need but are not a sensible investment for Private Sector Landlords (PSLs) in Provincial Towns! My advice is do not buy a sub-lease in a Housing Warehouse. Planning consent is not required for such conversions and they are filled with drug addicts, alcohol addicts, and so on.
All the time there is insufficient housing to meet needs then Housing Warehouses can fill a gap but it is all rather basic stuff. They are run commercially to make a profit and provide accommodation that meets acceptable needs. No frills. You get what you pay for Stack them High and Rent them Cheap!
All too often they house single mums in much despair with little hope in life! Mothers with small children need a small terraced house with a garden for a play area. All the time there is a Housing Shortage then those with money will take the better houses either as owner occupiers or tenants.
If the tenant has no money where does the tenant go? London Boroughs offer cash incentives to take non-conforming tenants. Very many have a range of problems but others do not. They are in a poverty trap.
Most landlords have one house where the tenants change every four years. The landlord goes to sleep.
The ‘sardine approach’ of dealing with so many tenants is just one up from being on the street. Mothers have little choice but to accept! The Duty of Care rests with the Local Council but it can be exercised by offering a placement in a Housing Warehouse which many call a living prison.
What can be done to alleviate? Well nothing!
London Boroughs throw money at it to get rid of their problem tenants. Currently £5,000. London Councils seem to think all PSL have their price. Offer enough money and they will accept. It is an Auction situation. Who will offer the most? We are a caring society, but common sense must prevail. Of the tenants in Private Accommodation only 20% are on Housing Benefit with PSL focusing on the 80% non-HB tenants. Everyone seems to forget about the vast majority of private sector tenants not on HB.
Everyone is entitled to a roof over their heads. That basic entitlement is the responsibility of Local Government. It is a Base Line.
The PSL comes into the picture at a level above that. Most PSL own a house and not a flat. Of those owners many inherited the house some years ago when they could not sell due to the credit crisis!
This week I have sold two houses to tenants. They have ceased to be tenants and are now first time buyers. Indeed owner occupiers! The label has changed from tenanted house to an owner occupied house! It makes no difference to the number of houses!
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