Section 21: Vulnerable Will Be Hit By Squeeze On The Rental Market

Vulnerable tenants at higher risk of rent arrears will be hit hardest by plans to change the way landlords can repossess properties. According to one of the largest ever non-government surveys of landlords and agents 84% said that plans to scrap Section 21, ‘no explanation’ repossessions would make them “more selective” about the tenants they rent to. The RLA, which conducted the survey has warned that this means that landlords would be less likely to rent to those considered to be of higher risk of rent arrears or causing damage to a property, such as tenants with pets.  Read more on the RLA website.

https://news.rla.org.uk/section-21-vulnerable-will-be-hit-by-squeeze-on-the-rental-market/

Cheap Loans To Encourage Developers

The Conservatives are poised to announce a £3 billion house building fund which will provide developers with cheap loans and funding in a bid to "get Britain building" after the EU referendum vote. Philip Hammond, the Chancellor, is expected to use his Autumn statement to unveil a housing fund which will be targeted at small and medium-sized developers. The fund will offer developers cheap loans or financial guarantees as the Government takes more financial risk than it has ever done before in a bid to get more homes built. A Whitehall source said that the fund will be designed to reduce red tape which led to the failure of previous schemes. Read more on the Daily Telegraph website.

Council Bosses Told To Gamble £30million On Property To Make Up For Government Cuts

Council chiefs could be poised to gamble up to £30million on the property market - to help make up for Government cuts. Devon County Council’s senior councillors are being urged to gamble the cash on the rising property market. The ruling executive will consider a report recommending they sanction an investment in the Churches, Charities and Local Authorities) Property Fund (CCLA) instead of bank deposits. The CCLA fund currently has investments of over £300million, with over 100 local authority investors including Plymouth City Council and four Devon town councils. A report to the cabinet meeting points out the “risk” that property value could go down and that with charges a 3% rise in the market would be required for the authority to break even. Read more on the Plymouth Herald website.

Damning Universal Credit Report Reveals Direct Payments Threat to Finances

Housing associations will be put at financial risk from the direct payment of housing costs to tenants under universal credit, the DWP’s own research has revealed. The final report into the Direct Payment Demonstration Projects calls for "mitigating action to be taken" after analysis showed that tenant arrears had risen, on average, by 33% during the migration process onto the new benefit system.  While the amount of rent owed dramatically reduced over time, the report concluded that direct payments "did have a financial impact on landlords" with a total of £1.9 million of rent owed to the six participating landlords at the end of the 18-month study period. Download the report from the DWP website.