Housing Minister dismisses fears that regulation will force small landlords out

admin    Uncategorized     agents

Property118

Housing Minister dismisses fears that regulation will force small landlords out

Housing Minister Matthew Pennycook has rejected claims that more regulation will drive small landlords out of the market.

During a debate in Parliament, Conservative MP Edward Leigh warned that imposing more regulations on small landlords would cause them to leave the private rented sector, ultimately harming vulnerable people.

However, Mr Pennycook said that “not all regulation is bad” and argued that under the Renters’ Rights Act, landlords would be able to rely on simpler grounds for possession.

Do not accept that all regulation is bad

In oral questions to the Housing, Communities and Local Government, Mr Leigh asked Mr Pennycook whether regulations could cause more harm than good.

He asked: “We all know that rent inflation is caused by over-demand and lack of supply, and we can agree on the need to address problems by building more houses and tackling immigration.

“Does the Minister agree that the more controls and regulations are imposed on landlords, particularly small landlords, the more they will get out of the rented sector altogether, causing less supply and rent inflation, which will hit vulnerable people?”

In response, Mr Pennycook claimed the build-to-rent market will form an important part of the market in the coming years.

He said: “I do not accept that all regulation is bad. In many ways, we have clarified and made simpler the grounds for possession that landlords can use under the Renters’ Rights Act, but he is absolutely right to say that we need more supply of all homes, including in the private rented sector, and that we need to support the build-to-rent sector, which will be an important part of the market in coming years.”

Government does not support rent controls

Elsewhere during the debate, Labour MP Dan Carden welcomed the Renters’ Rights Act power to tackle unfair rent increases but was concerned that market rents would be used as a benchmark to prevent unaffordable rents from rising, and called for rent controls.

In response, Mr Pennycook claimed rent controls were not part of the government’s plan.

He said: “We will of course, keep the implementation of the Act under continual review, but, as I have said, it allows tenants to challenge unreasonable rent increases at the first-tier tribunal, which will make a judgment on whether the increases are fair and meet that market-rate definition.

“We have, however, made it clear that the government do not support the introduction of rent controls, including rent stabilisation measures, for the reasons that we debated at some length during the passage of the bill.”

You can watch Mr Pennycook’s response to Conservative MP Edward Leigh below.

House_of_Commons_12_01_26_15_04_15(1)

The post Housing Minister dismisses fears that regulation will force small landlords out appeared first on Property118.

View Full Article: Housing Minister dismisses fears that regulation will force small landlords out

Two thirds of landlords plan limited company BTL purchases

admin    Uncategorized     agents

Property118

Two thirds of landlords plan limited company BTL purchases

Nearly two thirds of landlords expect their next buy to let purchase to be made through a limited company, research reveals.

According to Paragon Bank, the long-running shift away from personal ownership is far from over, with younger and newer investors driving the change.

The study shows 63% of landlords plan to acquire future rental homes using specialist purchase vehicles (SPV).

Change driven by taxation

Paragon’s managing director of mortgages, Louisa Sedgwick, said: “Our research shows how owning property via a limited company structure has become increasingly popular over the past decade, driven by changes in taxation.

“Nearly two thirds of landlords intend to make future purchases through limited companies, so we expect the overall proportion of property held within a company structure to increase steadily in the coming years, particularly when you include those landlords who will incorporate existing property from personal name.”

She added: “It’s encouraging to see that they will continue to adapt in this way, particularly the next generation of landlords who seem to have realised the potential benefits of this ownership structure early in their lettings business careers.”

Younger landlords keener

Polling more than 500 landlords, the headline figure masks sharp differences by age.

The lender found that appetite for company ownership is strongest among those at the start of their landlord careers.

The survey found that all of the respondents aged 25 to 34 said they would buy through a limited company.

Among landlords aged 35 to 44, the proportion drops to 82%, before falling again to 73% for those in the 45 to 54 bracket.

Older cohorts remain more cautious, with 54% of 55- to 64-year-olds and 48% of landlords aged 65 to 75 planning to use SPVs for future purchases.

Limited company investment

The lender’s How limited company ownership is becoming the new normal report also points to further restructuring ahead.

Nearly a third of landlords, 32%, said they intend to move properties currently held in their own name into a company structure at some point.

Paragon’s analysis highlights how limited company ownership has risen consistently throughout the last 10 years.

It says there’s a pattern linked to tax reforms introduced in the mid-2010s.

With the ability to offset mortgage interest against rental income removed, many landlords have concluded that corporate structures offer a more workable long-term route.

The post Two thirds of landlords plan limited company BTL purchases appeared first on Property118.

View Full Article: Two thirds of landlords plan limited company BTL purchases

Tenant group claims rising rents to blame for homelessness increase

admin    Uncategorized     agents

Property118

Tenant group claims rising rents to blame for homelessness increase

A tenant group and a homelessness charity have claimed that unaffordable private rents and a chronic lack of social housing are forcing more people into homelessness.

The Renters’ Reform Coalition and Crisis warned that increasing numbers of people are being pushed into temporary accommodation or onto the streets as freezing temperatures set in.

Government figures show that nearly a third of households in temporary accommodation, 42,740, are housed outside their local area, an increase of 10% in just one year.

Unaffordable rents put people at risk of homelessness

Re-posting an article from The Independent on X (formerly Twitter) about the lack of affordable housing pushing more people into temporary accommodation and onto the streets, the Renters’ Reform Coalition claimed unaffordable private rents are to blame.

Renters’ Reform Coalition posted on X, formerly Twitter: “Unaffordable rents put people at risk of homelessness.

“Along with a lack of social housing, this means that more people are forced onto the streets in this freezing cold weather.

“The government must address the cost of renting crisis.”

The private sector isn’t affordable

Francesca Albanese, director of policy and social change at Crisis, told The Independent: “We are seeing a massive increase in temporary accommodation and seeing record levels of people accessing them. There isn’t enough social housing, and the private sector isn’t affordable, and that is decades in the making.

“It’s very unsettling for individuals; becoming homeless is very isolating and dangerous. With shelters and emergency accommodation, people come in for a few days when the weather is cold, but it’s very difficult to then engage in that support someone might need, and link them to the right services in the long term.”

She added with the cold weather more and more people are accessing emergency accommodation.

Ms Albanese said: “These kinds of shelter are facing pressures of their own in terms of provision, as we’ve seen rough sleeping going up but we’ve not seen huge increases in funding for emergency accommodation. Emergency provision such as this is vital and lifesaving, and we know people can’t survive when temperatures plummet, and we know it doesn’t cover everybody and there needs to be more of it.”

The post Tenant group claims rising rents to blame for homelessness increase appeared first on Property118.

View Full Article: Tenant group claims rising rents to blame for homelessness increase