The Pros And Cons Of New Home Ownership Schemes

With no end in sight to thehousing crisis, investors are increasingly looking at ways to monetise Generation Rent with a series of alternative home ownership schemes funded by the private sector. The latest offering is a “gradual homeownership” proposition launched by Wayhome. Unlike traditional shared ownership models Wayhome is backed by pension funds and teams up with buyers to purchase resale properties costing between £200,000 and £500,000. The buyers must have a household income of at least £30,000 and be able to put down a five per cent deposit. For a property worth £500,000 this would mean an initial £25,000. Read more on the Evening Standard website.

https://www.standard.co.uk/homesandproperty/buying-mortgages/pros-and-cons-new-home-ownership-schemes-generation-rent-b951070.html

Unfair Evictions ‘Cost Councils £161m A Year’

Ending unfair evictions could reduce homelessness by 9% and save the public purse £161m a year, according to analysis by Generation Rent. Figures from the MHCLG show that out of 755,250 households made homeless or threatened with homelessness between April 2018 and December 2020, 140,950 (19%) had been in a private assured shorthold tenancy. The campaign group says that of these households, 68,430 households have faced homelessness after their landlord evicted them to sell or re-let the property or in retaliation for a complaint. Read more on the Yourmoney website.

https://www.yourmoney.com/mortgages/unfair-evictions-cost-councils-161m-a-year/

  

Senior Tory Demands Ministers Take Action To Avoid Homelessness Crisis Before Eviction Ban Lifted

Ministers must take “urgent action” to avoid a fresh homelessness crisis when the Government lifts its moratorium on evictions next month, a senior Tory MP has warned.  Bob Blackman, co-chair of the All Party Parliamentary Group on ending homelessness, has urged the Government to avert a fresh spike in homelessness among “Generation Rent”. He said: “With seven per cent of the renting population of England and Wales now in rent arrears, when the moratorium on evictions comes to an end in June, it is likely that we’ll see rates of homelessness increase again unless urgent action is taken.” Read more on inews.

Senior Tory demands ministers take action to avoid homelessness crisis before eviction ban lifted (inews.co.uk)

Home Ownership Unaffordable Despite 95% Mortgages

 The government’s scheme to turn generation rent into generation buy will not help single thirtysomethings get on the property ladder in much of England and Wales. The mortgage guarantee scheme will support banks and building societies to offer 95% loans, meaning that buyers only have to raise 5% themselves. Single buyers in their 30s on the UK median wage will still be locked out of buying a home in about half of local authority areas. Although two salaries will make it easier to raise a large mortgage, those on the UK median earnings for that age group will be unable to afford to buy a home in all of London and parts of the south and east. Read more on the Guardian website.

https://www.theguardian.com/uk-news/2021/apr/19/home-ownership-unaffordable-despite-95-mortgages-analysis-shows

One In 12 Private Renters ‘Has Received A No-Fault Eviction Notice In Past Year’

One in 12 private renters in England has been given formal notice to move out without a reason since March 2020, a survey has found. Some 8% of private renters in England said they had received a Section 21 notice to quit during the coronavirus pandemic, which allows landlords to evict tenants without needing a reason. While the initial Section 21 notice is only the first stage of the legal process, many tenants move out before the case reaches court, according to Generation Rent, which campaigns on behalf of tenants and released the findings. Read more on the Belfast Telegraph website.

https://www.belfasttelegraph.co.uk/business/uk-world/one-in-12-private-renters-has-received-a-no-fault-eviction-notice-in-past-year-40314876.html 

Half A Million Tenants In The UK Battle To Pay Rent Due To Benefit Cap

Almost half a million low-income tenants who are claiming universal credit – many of whom were forced to apply for the benefit during the pandemic – are struggling to pay rent because it only covers the cheapest third of rents in each part of the country. New analysis by Generation Rent suggests 474,000 tenants in the UK currently face a shortfall between their universal credit housing payments and their actual market rents, including 91,904 people in the north west of England which has particularly badly hit by coronavirus. Read more on the Observer website.

https://www.theguardian.com/world/2020/nov/01/half-a-million-tenants-in-the-uk-battle-to-pay-rent-due-to-benefit-cap

Government Accused Of ‘Sneaking Out’ Rules For Evictions After Ban Is Lifted

The government has been accused of “sneaking out” new legislation outlining how landlords can evict tenants after the current ban is lifted, with campaign groups warning that most renters will not be protected from losing their homes. On Friday evening, the government published an amendment to its rules on evictions during the coronavirus crisis, detailing how possessions will resume after the government lifts the moratorium on 23 August. Campaign group Generation Rent has criticised the plans, claiming that they will not give judges enough power to protect renters and prevent mass evictions. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/government-accused-of-sneaking-out-rules-for-evictions-after-ban-is-lifted-67221?utm_source=Housing60&utm_medium=email&utm_content=article_link&utm_campaign=H60

Housing Crisis ‘Stops Nearly Two Million From Having Children’

Housing stress is potentially stopping nearly two million people from having children, a report from the Affordable Housing Commission (AHC) has revealed. The report is based on a poll showing 13% of UK adults under the age of 45 in a couple have delayed or not had children due to their housing situation – potentially affecting 1.8m people nationally. Generation Rent says the poll finding should further pressure the government to make provision in the budget for investment in new council homes. Read more on 24housing.

https://www.24housing.co.uk/news/housing-crisis-stops-nearly-2m-from-having-children/

2.4 Million Private Renters Could Lose Their Vote

More than two million private renters could miss out on voting at the General Election, analysis by Generation Rent reveals. Generation Rent is urging private renters to register to vote, highlighting 96 seats in England where newly registered private renters could cast the deciding vote. “Many renters are on 12 month contracts, meaning they are much more likely to move house in a given year,” said Caitlin Wilkinson, Policy & Public Affairs Manager, Generation Rent. “In key marginals across the country, renters registering could decide the outcome of the seat. Read more on the Generation Rent website.

https://www.generationrent.org/

Landlords Hit Back At National Renter Manifesto

Renters and housing justice campaigners from across England have come together to launch a national renter manifesto ahead of the General Election. In a warning that political parties would be “foolish” to ignore the renter vote – a Generation Rent report identified 47 seats in England with a higher than average private renter population and a parliamentary majority of less than 5000 votes.

Now, the Landlords Alliance have hit back – with their own manifesto. Written by Larry Sweeney, CEO of the Landlords Alliance, the manifesto calls for an alternative, positive agenda – which works for “both landlords and tenants”. Read more on 24housing.

https://www.24housing.co.uk/news/landlords-hit-back-at-national-renter-manifesto/

Almost £11 Billion-Worth Of London Housing Is Sitting Empty

A shocking £10.7 billion-worth of London housing is sitting empty, new research has found. According to a study of properties across Greater London some 22,481 homes are currently empty, despite a growing housing crisis. Since 1990 the proportion of 25 to 34 year-olds owning their own home in London has plunged from 57 per cent to 28 per cent. In June 1994 the average cost of a home in London stood at just £73,013, compared with £471,504 today, resulting in “generation rent” for many young residents. Read more on the London Economic website.

https://www.thelondoneconomic.com/property/almost-11-billion-worth-of-london-housing-is-sitting-empty/30/10/

Evictions Cost Private Renters In England £70m A Year

Private renters in England are losing out on about £70m a year when landlords kick them out as missed time at work, cleaning bills and moving costs stack up to £1,400 each on average, housing campaigners say. An estimated 146,000 households have been asked by landlords to leave their homes in the past three years, with rent arrears and an alleged lack of care for the property the most frequently cited reasons. The campaign group Generation Rent, which calculated the costs of moving out, said more than half the public believed landlords should foot the bill. Read more on the Guardian website.

https://www.theguardian.com/money/2019/oct/10/evictions-cost-private-renters-in-england-70m-a-year

Deposit Cap Means Renters Could Be Owed Refund

Renters in England could be in line for one-off payments of £117.90 on average if they renew their tenancy, Generation Rent analysis reveals. But as tenants who move must find a new deposit before getting their existing one back, the campaign is calling on the government to free up more of tenants’ cash before they move to make the process less stressful. With the government call for evidence on tenancy deposits closing this Thursday (5th Sept), Generation Rent is calling on ministers to enable renters to access some of their deposit to put down on a new home once the final month’s rent is paid. Read more on 24housing.

https://www.24housing.co.uk/news/deposit-cap-means-renters-could-be-owed-refund/

Renters In PRS Denied Protection From Revenge Evictions

Just one in every 20 private renters who complains to the council about poor conditions in their home gets protection from a revenge eviction, according to Generation Rent analysis. Data obtained under the Freedom of Information Act finds that councils in England are “failing” to use their powers to protect tenants. Reports reveal that even when a severe hazard – such as mould or broken stairs – is found in a rented home, tenants only get protection from eviction in one in every five cases. Read more on 24housing.

https://www.24housing.co.uk/news/renters-in-private-sector-denied-protection-from-revenge-evictions/

Third Of Councils Have More Than 20% PRS Residents

A third of councils have more than 20% of residents renting from private landlords, new stats show. Generation Rent says the stats, released by the ONS, expose the extent of housing market failure. Generation Rent is campaigning for an end to Section 21, the law that allows landlords to evict assured shorthold tenants without needing a reason – one which has been recognised as a leading cause of homelessness. The stats show that in 2017, 32.50% of local authorities now have private renter populations of between 20% and 39% – up from 25.31% in 2012. A further 0.3% (one council) had a figure of 40% or more in both years. Read more on 24housing.

https://www.24housing.co.uk/news/a-third-of-councils-have-more-than-20-of-residents-in-prs/

Campaigners In ‘Frontline Fight’ Against Universal Credit Evictions

Councils and housing associations face grassroots campaign pressure to stop evictions over Universal Credit arrears – as the frontline of a fight for “fundamental policy change”. Highlighting the growing End Section 21 campaign against no fault evictions, Jacob Mukherjee of Generation Rent told the National Housing Summit a similar approach was needed to the growing risk of arrears evictions as UC rolled out. The summit unanimously agreed to put pressure on councils and housing associations not to undertake such evictions. The threat of far-right exploiting the housing crisis also hit home, with a rallying call for campaign groups to be on election standby. Read more on 24housing.

https://www.24housing.co.uk/news/campaigners-open-up-frontline-fight-against-universal-credit-evictions/

Treasury Weighs Up Tax Break For Landlords Who Sell To Generation Rent

The chancellor, Philip Hammond, is considering using this month’s budget to introduce a “good landlord” tax break rewarding investors who sell properties to sitting tenants amid a housing crisis that has left 40% of young adults unable to buy a home. The Treasury is weighing up a new Help to Buy proposal whereby landlords would not have to pay capital gains tax when selling up to tenants who had been living in a property for at least three years. The plan has been drawn up by the right-wing thinktank Onward, which suggests the £1.3bn-a-year cost of the policy could be covered by curtailing other tax perks enjoyed by buy-to-let investors. Read more on the Guardian website.

https://www.theguardian.com/money/2018/oct/08/treasury-weighs-up-tax-break-for-landlords-who-sell-to-generation-rent

No-Fault Evictions Making Hundreds Of Families Homeless Each Week

Analysis of quarterly eviction and homelessness data by the pressure group Generation Rent suggests that 216 households evicted every week in England under section 21 of the 1988 Housing Act are becoming homeless. These are known as no-fault evictions because landlords do not need a reason such as rent arrears or property damage to kick tenants out. The end of a private tenancy is now the single biggest cause of homelessness in England, with the number of cases more than trebling from 4,580 to 16,320 between 2009 and 2017. The analysis reveals for the first time that 94% of this rise can be blamed on no-fault evictions, which have more than doubled since 2009. Read more on the Observer website.

https://www.theguardian.com/uk-news/2018/aug/18/no-fault-evictions-hundreds-of-families-homeless-each-week

Mayor Brands Tenant Fees Bill 'A Missed Opportunity'

The Mayor of London, Sadiq Khan, has declared that the Government’s proposed Tenant Fees Bill is a "missed opportunity" to protect the 2.4 million private renters in the capital, and criticised Ministers for breaking their promises to publish key plans for social housing and rough sleeping before the summer. Extortionate fees and deposits mean London’s renters need to find nearly £3,700 each time they move home, compared with the nationwide average of £2,000*. In a joint letter to the Prime Minister, Sadiq, along with Crisis, Generation Rent and Citizens UK set out how a reform of private renting is desperately overdue. Read more on the Mayor of London’s website.

https://www.london.gov.uk/press-releases/mayoral/along-with-organisations-representing-renters

Calls To End No-Fault Evictions

The London Assembly agreed a motion calling on the Mayor of London to back the campaign to abolish section 21 and to lobby the government for a change in the law. Sian Berry AM, who proposed the motion, said:  “The Assembly has firmly put its weight behind Generation Rent’s campaign to end section 21. London renters need to feel secure in their homes and know they can’t be thrown out on the streets for no reason. Having to move at short notice is one of the worst parts of being a private renter and ending section 21 would make a dramatic difference and solve this problem – it would also align our policies with other countries.” Read more on 24housing.

https://www.24housing.co.uk/news/calls-to-end-no-fault-evictions/