Welcome to another weekly Newsround let’s see what has happened this week in the housing news.
New How to Rent guide to be published today. Probably.
The new How to Rent guide was due to be published last Friday, but the publication date was then put back.
At the time of writing, we understand that it is due to be published today (24 March) but having just checked the government page it is not there yet.
We will have to wait and see.
When it is finally published, note that the latest version must be served at the start of any new tenancy, and on renewal if the guide you served at the start of the tenancy was an older version. Note that this is in England only.
‘No children’ ban breaches equality rules
Letting agents and landlords cannot discriminate against families with children, the Property Ombudsman has now ruled. This is the result of a female nurse who had four children and who challenged the practice with the assistance and support of Shelter, the housing and homelessness charity.
The nurse, Lexi Levens, and her four children and husband were forced to register as homeless following a no-fault eviction while passing affordability checks for other homes. The ombudsman ruled that blanket bans on letting properties to families with children discriminate against women and are against the sector’s code of practice.
It is likely that this ruling would be followed in the Courts so if you advertise ‘no children’ for your properties you may find yourself the subject of a compensation claim.
According to Shelter as many as 300,000 families have been unable to rent somewhere because they have children. Rose Arnall a solicitor for Shelter, said
No one should be barred from finding a safe and stable home simply because they have children. Whether you can secure a home must not be based on a landlord or letting agent’s baseless prejudices about the ‘type’ of tenant you might be.
Shelter are pushing for the renter’s reform bill to be made law as this bill would make it illegal for landlords and agents to have blanket bans on renting to families with children and those on benefits.
Tax squeezes have had big impact on PRS
The NRLA claims that there are now 1.2m fewer properties to rent since the mortgage interest relief was reduced.
They commissioned an independent analysis by Capital Economics who found that between 2010 and 2016 private rented housing increased by 3.7% a year but between 2017 and 2021 when the mortgage interest relief was reduced, it grew by just 0.4% per year.
This analysis goes one step further and predicts that if housing continued to grow at 3.7% then there would have been 6.8m properties to rent in 2021, whereas there were only 1.2m more properties to rent. They also calculate that this would have given the Treasury £1.5m boost.
NRLA want the government to carry out a full review of the impact of the tax rises in the PRS sector, Ben Beadle says
At a time when renters are struggling to find a place to live, today’s research shows that the government has shot itself in the foot. The decision to restrict mortgage interest relief has not only stifled investment in the very homes tenants need, it has also come at a considerable cost to the Treasury in lost revenue.
Zoopla has stated that compared to the five-year average demand for rented housing is up by 46% whilst supply is down by 38%.
Surely something has to give to preserve the PRS?
Landlords improve the standards of their homes
It looks as if, contrary to what you may assume from reading the press, many landlords in the PRS are actively improving the standards of rental homes. A survey by Paragon Bank of over 500 landlords found that 22% had spent over £25,000 upgrading their rentals and others spending lower amounts.
Many landlords, as much as 40% prefer to purchase property in need of refurbishment, while 21% prefer opt for ready to let properties. There has also been a reduction in the number of properties classed as non-decent – falling from 1.4m to 990,000, a 29 per cent reduction.
Richard Rowntree from Paragon Bank says
Landlords have helped improve standards across the private rented sector over the past 15 years and the upgrading of stock they purchase is central to that. The vast majority of landlords will look to upgrade each new property to boost the capital value and the potential rental income. However, they also do this out of a genuine desire to provide a good quality home to their tenants.
So when reading about the poor standards endured by some tenants in the press, don’t assume that this applies to all rented properties. It does not.
Tesco move in on the Build to Rent scheme
Tesco has announced that it plans to work with a new developer in a build-to-rent scheme in Lewisham, south London. The site will be a mix of residential and mix-use, including a Tesco store. This is seen as ‘innovative’ and will deliver much needed housing for rent in the area, which will be sustainable.
Travis Crawford, who works for Astir, the developer says
We are delighted to be working with Tesco to bring forward these exciting proposals to deliver much-needed new housing for rent in Lewisham, grounded in our focus on exemplar place making and sustainability. The redevelopment proposals will continue the successful regeneration of Lewisham town centre and we look forward to working with the London Borough of Lewisham to bring this exciting development forward.
As John Lewis hits troubles in their build to rent scheme will this scheme be more profitable?
Anti-social evictions – court resources should be the highest priority
Ben Beadle, chief executive of the NRLA continues to ‘bang the drum’ on ministers’ doors for a boost in court resources and to have swift measures to evict anti-social tenants once S21 goes. Without this, there will be far reaching implications for landlords, who are already trying to work within a creaking system.
He says
It is not clear whether the government fully appreciates the extent to which an unreformed courts system could undermine its tenancy reforms. When section 21 is gone it will become much harder to tackle the behaviour of the small number of renters who inflict misery on neighbours and other tenants.
The courts need clear and comprehensive guidance to ensure they prioritise cases that involve such behaviour.
The Law Society further confirms and backs Ben’s concerns where they say, backlogs are delaying justice for thousands of people due to a shortage of judges and court staff.
In a similar vein, Gavin Richardson boss of Mortgages for Business has called out the government for trying to ‘win points’ with renters.
Government must stop siding with tenants
Gavin Richardson calls the government ‘irresponsible’ for trying to side with tenants when discussing the imminent renter’s reform bill and abolishing Section 21. He feels getting rid of S21 is the wrong thing to do. He says
The government needs to stop trying to gain cheap brownie points by taking a pop at the private rented sector and needlessly spooking landlords. It is the reason the government has lost the confidence of responsible landlords.
Fears surrounding the scrapping of Section 21 are a driving force behind landlords not remortgaging and selling up instead.
A recent poll run by his company stated that landlords are more worried about Section 21 reforms than stamp duty or loss of tax relief.
Snippets
HMRC rakes in the cash – is Inheritance Tax hurting property?
Growing fears of more tax and red tape for holiday lets
Sadiq Khan urged to act against ‘exempt landlords’
Big council says HMOs ‘fundamentally change areas’ as it clamps down
Landlords seeking to convert commercial into residential warned by trade body
John Lewis build-to-rent plans stall as locals oppose huge apartment ‘towers’
Agents and landlords face big HMO approval changes in London
Are landlords really leaving the private rented sector?
Estate agents worried about implications of ‘propertyless’ budget
Gove hints at fairer tax rules for landlords in return for more regulation
Newsround will be back next week.