Tenants Hurt By Growth In Short Term Lets

Tenants, including many with children, are finding it harder to access long term homes to rent as Government policy is driving landlords to move into the holiday lettings market, says the leading landlords’ organisation. The warning comes as figures show that Airbnb accommodation now accounts for one listing for every four properties in some parts of the country. Nearly half a million properties could be left unavailable for longer-term rent as more landlords exit the market in favour of short-term lettings. One of the main reasons for this is the change in the taxation of landlords which is driving many landlords out of the long-term sector. Read more on the RLA website.

https://news.rla.org.uk/tenants-hurt-by-growth-in-short-term-lets/

Minority Of Landlords Offering Informal Short-Term Lets

Only three percent of landlords are currently engaged in the informal short-term lettings market, according to research by the NLA.  Short-term lets, which range in length from one night up to around six months, have increased in popularity in recent years following the success of companies such as Airbnb. Landlords can generate significant income from letting their properties in this way.  However, this can breach a landlord’s mortgage terms and invalidate their existing insurance policy, so it’s vital for them to be aware of the problems it can present.   Read more on the NLA website.

https://landlords.org.uk/news-campaigns/news/minority-landlords-offering-informal-short-term-lets

Citizen’s Advice Wants Action On Short-Term Tenancies

Two in five people living with their children in privately rented homes have a tenancy of six months or less, new figures from Citizens Advice (CA) reveal. The survey shows one in three (34%) private renters would like their tenancy to be longer, rising to two in five (39%) amongst those with children. CA says this amounts to almost 1.5 million households in England who need more security that they’ll be able to keep living in their own home.  Read more on 24housing.

100,000 Children Will Be Homeless This Christmas

100,000 children will be homeless this Christmas but councils have a duty to find children that have nowhere to live somewhere to sleep. Councils do their best but don’t have enough affordable housing and are only building half the homes needed each year, while the number of genuinely affordable homes falls. Combined with growing house prices, the shortage of affordable homes pushes more families into the private rented sector. The single leading cause of homelessness is the end of private tenancies. There’s nothing in law that stops landlords asking families to leave come the end of their short-term fixed tenancy. What makes it all harder is growing rent costs – combined with cuts to social security. They’ve removed the safety net that many low-income families need to cover costs. Read more on the Shelter blog.

Social Housing: Future, What Future?

The government is preparing to regulate to prevent social landlords offering lifetime tenancies. This would mean that new tenants could only be offered a home for a period of five years or so. Very short-term tenancies make sense if stock is limited and you want to regularly check that it is only housing those who genuinely need it most urgently. There also seems to be a less charitable view in some quarters that, if social housing is an emergency safety net, life shouldn’t be too comfortable. Imposing fixed term tenancies could also cynically be seen as a further attempt to ensure that the positive features of social housing – first affordability, now security – are diluted to the point where the tenure becomes too diminished to be worth defending. The affordable council home for life eventually becoming a folk memory, along with outdoor loos and milk delivered to your doorstep. Read more on the Shelter blog.

More People Than Ever Made Homeless By Insecure Private Tenancies

More and more people are being left homeless by Britain's insecure private rented housing sector, new official figures show. Nearly a third of all people made homeless in England now lose their homes because of a landlord ending a tenancy agreement, according to the latest figures from the communities department.  The growing problem is driving an overall increase in homelessness, with figures up by five per cent in the second quarter of 2015, according to the same set of figures. Private tenants in Britain have fewer rights in law compared to those in other European countries, with no real security of tenure, short tenancy agreements, and no right to stable rents. Read more on the Independent website.

PRS Campaigners Release Renter's Manifesto

A campaign group that fights for tenants' rights in the private rented sector has released a renter's manifesto - and is now asking for people's views and additional proposals. Generation Rent claims that PRS landlords are currently failing too many of their tenants, while across the country spiralling rents are leaving people more and more out of pocket. The protest group also says that the PRS is characterised by "insecure, short-term tenancies that mean lives can be disrupted with very little notice, forcing people to become transient". Read the manifesto in full at 24dash.

Landlords in A Pickle as Tenants' Charter Breaches Buy-To-Let Terms

Millions of people trapped in a cycle of short-term rental tenancies will be able to demand that landlords give them longer contracts, expected to be between two and five years, under a "tenants' charter" unveiled by communities secretary Eric Pickles. However, the move threatens to put large numbers of landlords in breach of buy-to-let mortgage terms, which generally stipulate that tenancy agreements be no more than one year. Pickles told the Conservative party conference: "Today's proposals will raise the quality and choice of rental accommodation, root out the cowboys and rogue operators in the sector, and give tenants the confidence to request longer fixed-term, family-friendly tenancies that meet their needs."  Read more on the Guardian website.

Affordable Housing - Within Whose Means?

The term ‘affordable’ describes something which is ‘believed to be within one’s financial means’. However, looking at two housing initiatives –affordable rent and the local housing allowance – you’d be forgiven for thinking that ‘affordable’ meant quite the opposite.  Boris Johnson’s proposal to set affordable rents across London at up to 80% of market rents was defeated at the most recent London Assembly meeting.  A family looking for affordable rent in Camden will need a combined salary of £78,743, while the median family income for the borough is closer to £31,000. In Kensington and Chelsea you’d need a household income of £100,000 a year. The CLG recently released its latest homelessness statistics. Perhaps the most notable finding is that 27% of all acceptances come from applications made by people coming to the end of short-term tenancies, whose landlords have seen fit not to renew them. Read more on the Homeless Link website.

Universal Credit – Parliamentary Written Answer

Chris Leslie: To ask the Secretary of State if he will make provision in the universal credit system to ensure that people in need of refuge support as a consequence of domestic violence have access to short-term housing support equivalent to that provided under the current housing benefit system.

Steve Webb: The Government is committed to tackling domestic violence and to providing better support for victims. It is our intention that universal credit will not cause a reduction in support levels for victims of domestic violence.

Stephen Timms: To ask the Secretary of State how he plans that eligible service charges will be paid for under universal credit.

Steve Webb: Social rented sector landlords will be responsible for setting out clearly to the tenant those charges which are allowable. The claimant will report this as part of their claim.

Stephen Timms: To ask the Secretary of State whether he has carried out analysis of future universal credit claimants to establish (a) how many households will be affected by the transition to universal credit, (b) how many such claimants are worried about the change to universal credit and (c) how many claimants will be capable of managing universal credit; and if he will place a copy of any such analysis in the Library.

Mr Hoban: The Department estimates that 12 million claims to current benefits and tax credits will be integrated into eight million household claims to universal credit.  We recognise that some claimants may need additional help to budget, particularly during the transitional period. We are working, with the advice sector to ensure that claimants are able to access appropriate budgeting support services to enable them to manage their money successfully.  For a minority of claimants however, an alternative payment arrangement may be required in addition to the above support. This includes making more frequent than monthly payments of universal credit to households, splitting payment between both joint claimants or paying housing costs directly to the landlord.

Urgent Action Needed To Keep More People in Their Homes

Homeless Link responds to Government statistics showing a nine per cent increase in the number of homeless households.  According to Homeless Link analysis,

*12,860 individuals and families were accepted by councils as homeless from April - June 2012, an 8.8 per cent increase on the same period in 2011. 

*The number of people finding themselves without a roof because they have had to leave privately rented accommodation is also the highest for 14 years.   

*21% of people accepted as homeless, became homeless because of an end to their short hold tenancy; this is the highest proportion recorded since 1998

*26,800 applications for help were made, 52% of which were turned down

*The majority of those accepted as homeless were ‘households with dependent children’ (64% of all cases).

Read more on the Homeless Link website.

Major Landlords to Offer Short-Term Tenancies

At least three major housing associations have said they will seek to introduce minimum tenancies of less than the default five years proposed in the government’s Localism Bill. A sample survey by Inside Housing of 25 of the largest associations in England - which own 767,000 homes between them, according to Tenant Services Authority figures - revealed 18 plan to implement fixed-term, rather than lifetime, tenancies in some form for new tenants, pending approval from their boards and councils. Three plan to keep lifetime tenancies and four have yet to decide. Home Group, Bromford Group and Trafford Housing Trust, which own and manage 80,000 homes between them, said they would offer two or three-year tenancies in some circumstances. Read more on Inside Housing.

Labour Considers Single Form of Tenure

Labour is exploring a new form of tenure which would allow landlords to offer short-term tenancies in some circumstances. Shadow housing minister Alison Seabeck said the opposition party, which launched a two-year policy review in January, is considering adopting a policy of support for a single form of tenure. The policy, outlined in a Law Commission report in 2006, would bring in the same type of tenure for tenants of housing associations, councils and the private rented sector. This, says Ms Seabeck, would reduce management costs and simplify lettings systems as well as remove the stigma of being a social housing tenant. Read more on Inside Housing.