Private Rented Sector Becoming 'Tenure of Choice'

The private rented sector is becoming the tenure of choice due to the flexibility it offers, according to one of the Government's leading experts on housing. Terrie Alafat, Director of Housing Growth and Affordable Housing at the department for Communities and Local Government, told delegates at the National Landlords Association's annual conference in Manchester that it was an 'exciting time' for private landlords. She said: “It is an exciting time for the private rented sector. Housing is definitely at the top of the government’s agenda and the private rented sector is in the middle of all of that. We know that demand is continuing to grow and the sector has responded to that, expanding to house about 3.4 million households in England, which is an increase of one million since 2005. There is recognition about the flexibility of the sector. It isn’t a last resort, it is actually a sector which is the choice for people who do want that flexibility, who may want to move to work.” Read more on the NLA website.

Nearly 80% of Landlords Set To Desert LHA Claimants over Benefit Caps

A survey by the National Landlords Association (NLA) has found that Government caps on housing benefit payments could force over three quarters of landlords out of the Local Housing Allowance (LHA) market. The survey found 77 per cent of landlords who have LHA tenants are either considering or already taking steps to reduce their involvement in the LHA market. One quarter of respondents say they are already reducing the number of tenants they have on housing benefit payments, while half plan to do so in the future. Changes brought in by the Government this year saw maximum LHA rates in all areas reduced – and caps brought in based on property size. In April the amount was capped to £250 for a one-bed room, and £400 for a four-bed home. The caps will apply to existing tenants from January. NLA research has found the LHA cuts will have a varied impact on families across the country, with some losing hundreds of pounds. Read more on the NLA website.

Private Sector Shuns LHA Tenants in Wake of Welfare Reforms

Private landlords are turning away social tenants at a time when they are needed most to meet housing need according to Richard Price, director of operations at the National Landlords Association (NLA), who said one in five private landlords was now refusing to take on new tenants in receipt of the local housing allowance. The retreat follows government plans to overhaul the welfare system, reducing the local housing allowance to a maximum of £400 a week for a four bedroom property, pricing many tenants out of the private market. When surveyed by the NLA, 90% of landlords said they could not afford to reduce the rent they charged to adapt to the new rules. Read more on The Guardian website.

Councils Take Legal Action over New Shared House Rules

The government faces a High Court challenge over new rules which allow private landlords to easily convert rented properties into houses in multiple occupation. Four local authorities have won permission to launch a judicial review into the rule-change, which was announced by housing minister Grant Shapps last September. Since October, private landlords have been free to convert properties into HMOs - a house occupied by more than one household - without securing planning permission. The legal challenge is being brought by Charnwood, Newcastle, Oxford and Milton Keynes, following concern that the relaxation will increase the number of HMOs that attract crime, litter and anti-social behaviour. Councils can restore the requirement for planning permission for HMOs by making a direction under the Town and Country Planning Act 1995. The National Landlords’ Association last week launched a campaign against Portsmouth Council’s decision to consider such a move. Read more on Inside Housing.

Nine In 10 Landlords Fear Benefit Cuts

More than 90 per cent of private landlords have said they would be less likely to take on tenants who are claiming housing benefit if proposed cuts go ahead. A survey by the National Landlords Association of its members has found 90.3 per cent would be less likely to take on new tenants who are claiming the benefit. The cuts were set out in the Budget in June, and include placing restrictions on the maximum amount of local housing allowance that can be claimed. The NLA found 49.6 per cent of landlords that responded to its survey said they could not reduce rents to retain tenants who are claiming the local housing allowance. The association warned the cuts could lead to an average reduction in benefits of £12 per week and increase homelessness. Read more on the NLA website.