LATEST: Under-Secretary faces critical MPs frustrated by delays to renting reform

admin    Uncategorized     agents

Frustrated MPs have rounded on the government for again failing to confirm when it will timetable the long-awaited Renters Reform Bill.

During a Commons debate DLUHC Under Secretary Felicity Buchan (main picture) who appeared to be reading a pre-prepared script in the absence of any ministers able to speak during the debate, told them the Government was determined to deliver a new deal but only reiterated that it would “publish next steps in due course”.

But she reassured good landlords that the new system would continue to be a stable market for them to invest and remain in.

“No one will win if our reforms don’t support landlords as well as tenants,” said Buchan.

“This government is committed to reforming the PRS in a fair and balanced way – strengthening and clarifying landlords’ rights when seeking possession.”

Urgent

MPs across the House agreed on the need for urgent legislation. An exasperated shadow minister Matthew Pennycook said all 12 proposals in the white paper should be translated into legislation as a matter of urgency. “Problems have become acute,” he told MPs.

“Rents are surging. We could have fast-tracked legislation this winter – instead we just have a vague promise to introduce the bill in the next two years.”

Lloyd Russell-Moyle MP said although he welcomed the abolition of Section 21, it must not allow the next crisis to be the use of Section 8.

Loophole

“If we abolish Section 21 but allow landlords to increase rents uncontrollably, we would have a loophole you can drive a lorry through.”

The Brighton MP suggested one way to address the issue of student landlords dealing with proposed periodic tenancies would be to place a duty on universities to house all their students.

“They could engage in tenancies with the PRS which would be permanent, and universities could license those rooms out to students to give the PRS security and students the wraparound support they need.”

He also called on mortgage providers to give landlords buy-to-let mortgages when buying a property with a sitting tenant, to prevent the loss of private rented homes.

Watch the debate in full.

View Full Article: LATEST: Under-Secretary faces critical MPs frustrated by delays to renting reform

The Bank of England base rate rise – industry reacts

admin    Uncategorized     agents

Reaction from the worlds of property and finance was swift after the Bank of England announced that its base rate would increase to 3%.

That means lending for landlords looking for a new mortgage deal just got more expensive.

View Full Article: The Bank of England base rate rise – industry reacts

Councils warn how asylum seeker policies are ‘breaking’ private rented sector

admin    Uncategorized     agents

Council leaders in Kent and Medway have written to Home Secretary Suella Braverman (main pic, inset) warning that her asylum-seeker policies are pushing private and social housing sectors to breaking point.

Fourteen councils have signed the joint letter which demands that pressure be eased in the county where almost 20,000 households are on the waiting list for social housing, with limited availability of private rented sector and temporary accommodation, which also suffers from pockets of severe deprivation and low average earnings.

“Maidstone’s ability to access the private rented sector has been further severely curtailed by an increase in the number of placements from other local authority areas, and various services commissioned by Probation and the Home Office to provide housing for asylum seekers and ex-offenders from out of area,” the letter, which LandlordZONE has seen, explains.

“Maidstone has over 400 Ukrainian households many of which will need rehousing soon. [Its] experience is not unusual; it is mirrored 13 times across Kent and Medway’s housing authorities. Kent’s housing sector cannot absorb further asylum placements on top of these existing burdens over and above local demand.”

Entry point

The Home Office wants to allocate an additional 1,300 adults to accommodate in Kent by December 2023 – despite the county historically taking the strain of asylum-seeking adults and children due to it being the country’s primary entry point.

The letter goes on: “Kent and Medway make up just 3% of our country’s geographic space, and yet we are a victim of our geographic position. It is time to utilise the remaining 97% of the country to relieve the burden on Kent.”

Private contractor Serco is currently advertising for more landlords to take in asylum seekers in the Northwest, Midlands and East of England, by offering to organise a five-year lease with no void periods, regular rent payments without arrears, free repairs and maintenance, full HMO and property management costs.

View Full Article: Councils warn how asylum seeker policies are ‘breaking’ private rented sector

LATEST: Tenant campaign group mobilises for London rent freeze

admin    Uncategorized     agents

Campaign group the London Renters Union has stepped up its attempt to freeze rents in the capital, while blaming “out of control” landlords for recent rises.

A public meeting on 15th November labelled ‘Building the movement for a rent freeze’ aims to lead discussions on how to “unite and build the struggle”, ahead of its day of action as part of the #RentFreezeNow campaign, on 3^rd December.

The union cites the success of Living Rent campaigners in Scotland who it says helped prompt the country’s Cost of Living (Tenant Protection) Scotland Bill, which has frozen rents until at least next March.

London mayor Sadiq Khan recently repeated his call for the power to freeze rents and introduce rent controls, claiming that the move would save families about £3,000 during the next two years.

Rent rises

However, London Renters Union believes more than one million renters every month are having their rent put up and that its members are facing annual rent increases of at least £5,000.

“We’re living in a cost of living crisis, and rents are rising faster than ever but the government has done absolutely nothing to protect renters,” it explains.

“Rent increases are forcing us out of our communities and leaving us without enough for food and other essentials. Estate agents and landlords are out of control – and while they get richer, we get poorer.”

It adds: “We can only win a rent freeze by uniting our struggles, getting organised and making the connections between the fight for affordable housing and wider struggles against exploitation and oppression.”

View Full Article: LATEST: Tenant campaign group mobilises for London rent freeze

Bank Base Rate increased as predicted to 3%

admin    Uncategorized     agents

In an outbreak of predictability, when we all know the Base Rate is heading towards 4% to keep up with the Dollar and the Fed, The Monetary Policy Committee (MPC) voted 7-2 for an increase of 0.75% to a total 3%.

View Full Article: Bank Base Rate increased as predicted to 3%

Increased mortgage stress tests will push up rents, MPs told

admin    Uncategorized     agents

Not only will rents rise but tenants will find it more difficult to find homes over the next year or two as landlords will be struggling with higher mortgage rates, MPs have been told.

At the Commons Treasury Committee

View Full Article: Increased mortgage stress tests will push up rents, MPs told

‘Strategic reset’ from Government urged for Net Zero homes

admin    Uncategorized     agents

UK Finance says a ‘strategic reset’ is needed for the country and government to achieve Net Zero homes.

The organisations say this is ‘the number one policy issue facing future generations’.

In a report, it says that UK homes are the least energy efficient in Europe

View Full Article: ‘Strategic reset’ from Government urged for Net Zero homes