OFFICIAL: National survey shows renting is no longer just for the young

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Middle-aged renters now make up more than a quarter of the PRS, debunking the myth that the sector is the preserve of young professionals and students.

Over the last decade, the number of 45-54-year-olds renting privately has grown from 11% to 16%, according to the latest English Housing Survey, while owner-occupiers in that age group fell from 74% to 65%.

Those aged 55-64 living in the PRS also increased from 6% in 2010-11 to 11% in 2020-21, with a fall in owner-occupiers from 79% to 70%. Last year, the sector accounted for 4.4 million or 19% of households in England, unchanged from 2019-20, but lower than in 2015-16 (20%).

The survey reveals that fewer private renters are working full-time (58%) compared to 2019-20 when 67% were in full-time work, while more now work part-time – up from 10% to 15% – and the number unemployed increased from 3% to 7%.

In 2020-21, 25% of private renters reported finding it either fairly or very difficult to afford their rent, similar to the number in 2019-20 (27%), while the proportion receiving Housing Benefit went up from 20% to 26% between 2019-20 and 2020-21.

Sobering figure

Graham Cox, founder of the Self-Employed Mortgage Hub, says the fact that nearly one in six 45-54-year olds now live in private rented accommodation, up from one in nine a decade ago, is a sobering figure.

“This is presumably due to high property prices and insecure employment,” says Cox. “The average first time buyer deposit to buy a property is now a hefty £44,294, which also illustrates the difficulty that this cohort has in getting on the housing ladder.”

Mark Hayward, chief policy advisor at Propertymark (pictured), adds: “The steady decline in the size of the private rented sector over the last five years should act as a warning sign to the UK government that more needs to be done to protect the sector, especially at a time when rented homes are needed more than ever.”

Read more about the UK’s ageing tenant population.

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Wise Business Accounts for non-resident UK landlords

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As a result of Brexit, several UK banks started closing banking facilities for clients living in the EU from Spring 2021. These included Nat West, Barclays, Coutts, RBS and several others.

Property118 ran an article about this to seek feedback from landlords who had been affected.

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Son lives in parents property wanting to rent out a room?

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Hi all,  a quick question: I’ve got a landlord (Mr and Mrs) who live in Wales and who own a property in the Midlands.

I’ve been speaking to the son who lives in the property his parents own and the parents want to rent out a room for about 6 months.

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What’s the progress on fire regulations in high rise buildings?

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Since Grenfell there have been endless forums, reviews, reports, consultations and, even so, any real action has been painfully slow. See below for the latest situation.

The Hackett Review

The independent review started in 2018 into fire safety management in England and Wales was led by Dame Judith Hackitt. This resulted in findings that were damning. The review found that the existing fire safety regulations in high-rise properties were ‘not fit for purpose’.

“I have been shocked by some of the practices and I am convinced of the need for a new intelligent system of regulation and enforcement for high-rise and complex buildings which will encourage everyone to do the right thing and will hold to account those who try to cut corners.” said Dame Judith Hackett in here report.

Initially more that 400 high-rise blocks were identified as having inadequate and unsafe aluminium composite material (ACM) cladding. This is a type of external cladding of the same type that caught fire and rapidly engulfed the whole building at Grenfell Tower, with the tragic loss of so many lives. Since then more buildings, their construction and materials have been found to be defective.

Leaseholders, so far, paying the price

The Building a Safer Future report summarised Dame Hackitt’s findings. What followed in December 2018 was a nationwide ban on the use of combustible materials. AMC cladding was banned in high-rise residential buildings.

This led to what is now a major cladding scandal. It’s an ongoing social crisis that followed both the Grenfell Tower fire in June 2017 and the Bolton Cube fire in November 2019. These fires with the horrific loss of life in one, and the Hackitt review, have revealed that large numbers of buildings have been clad in dangerously combustible materials, and now its the leaseholders paying the price.

Many buildings have been found to be non-compliant in other fire-safety building requirements, such as missing cavity barriers around windows and a lack of fire break barriers, which are intended to prevent fires from spreading horizontally and vertically into neighbouring flats. That’s not to mention simple measures such as faulty and missing fire alarm systems, fire doors, closers and extinguishers etc.

Immediate fire risk

The report findings led to a recognition that these buildings could potentially be posing an immediate fire risk to residents.

Leaseholders of flats now find themselves in the invidious position of facing extensive and costly remedial work. Many are trapped in accommodation they would like to move out of but cannot do so because they are unmortgagable. In the meantime, sky high buildings insurance premiums, and the outrageous cost of paying for ‘waking watches’, paying people to patrol buildings 24/7 to monitor the building for fires, are bank breaking.

In February this year the UK government pledged over £5 billion towards remediation works, but even this staggering amount will be nowhere near enough to cover the extensive costs across the country, with much of the cost to-date falling on the shoulders of individual leaseholders of flats. These people, often young people just starting out in adult life, are potentially having to go into massive debt because they innocently and unwittingly purchased these unlawfully constructed homes.

The coming legislative changes

The Building Safety Bill has reached committee stage in the House of Commons. As it is currently drafted, its provisions will change building safety laws and place new duties on those responsible for the safety of high-rise residential buildings.

As a preview for those affected by the likely changes, the Health and Safety Executive (HSE) has published Safety case principles for high-rise residential buildings subtitled, Building safety reform – Early key messages. HSE say that adapting to a new regulatory regime will be challenging and it is collaborating with the government and other partners to help those affected to take “sensible, risk-based, proportionate steps that ensure the safety of the people in and around your buildings”.

HSE envisages the necessary measures will include “a combination of measures that work together to prevent and mitigate the spread of fire and structural failure, and the safety management system which keeps these measures in place and in good working order”.

Fire risk guidance

The Home Office has published Fire safety in purpose-built blocks of flats – Updated guidance (24 September 2021). It warns that the guide was first produced in 2011, summarising the legislation, guidance and best practice at the time, so should now be viewed as “no longer comprehensive”.

A revised version of this guide is expected in early 2022. Provisions relating to vulnerable persons have been redacted pending the outcome of the government’s Personal Emergency Evacuations Plan consultation. In the meantime, the current guide remains available to fire safety professionals, “as it contains relevant and useful information for purpose-built blocks of flats”.

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NEW data reveals evictions ban helped keep homeless figures lower than pre-COVID

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Shelter’s latest research reveals that more than 274,000 people are homeless in England but its previous data showed the problem was even worse before the pandemic, with 280,000 people affected in December 2019.

The campaigning charity believes the new figures are likely to be underestimated due to limited reporting. Nevertheless, its data and commentary reveal that the long months of the evictions ban, which cost many landlords thousands of pounds in lost rent, helped prevent a surge in homelessness.

Shelter says that, along with the evictions ban, Covid protections such as the ‘Everyone In’ scheme and the boost to Universal Credit played a vital role in keeping people in their homes and suppressing homelessness during the pandemic.

Warning

Now it’s warning that with these protections gone, living costs soaring and another uncertain winter ahead, there is a risk of the flood gates reopening and thousands more people losing their homes.

Its detailed analysis of official rough-sleeping and temporary accommodation figures shows that one in every 206 people are without a home and 2,700 of these are sleeping rough on any given night.

This new report reveals that London comes out worst, with one in 53 people now homeless in the capital, with other hot-spots including Luton, Brighton and Hove, Manchester and Birmingham.

Chief executive Polly Neate adds: “It is shameful that 274,000 people are without a home.

“We predicted the pandemic would trigger a rising tide of evictions and our services are starting to see the reality of this now. We’re flooded with calls from families and people of all ages who are homeless or on the verge of losing their home.”

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Rents are anticipated to increase firmly over the near term

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RICS have today released their UK Residential Market Survey current up to November 2021.

In the lettings market, tenant demand saw another solid monthly increase in November with a net balance of +48% of respondents citing a rise.

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