Welcome to our first Newsround of September.
Let’s see what has been happening in the news this week as the government come back from its summer recess. We start off with EPC’s.
Bigger government incentives needed for EPC changes
Rightmove has conducted a survey over the summer that states that it will take decades for the PRS to conform to the impending EPC requirements and that incentives are required to accelerate landlords in getting to the target EPC rating of C or even better.
They claim it will take 31 years until 100% of privately rented homes achieve a C rating, and for privately rented flats it would take 16 years.
Lower-rated properties are less inclined to be purchased, with 61% saying they would not buy a rental home of a rating below C, up 47% from last year. The report claims that 50% of homes up for let have an EPC rating of D or below.
Incentives such as stamp duty rebates, grants or tax benefits for green initiatives should be offered by the government. Furthermore, a higher EPC rating could further increase its value by up to 15%. Tenants are looking for properties with lower energy bills, with nearly one in five saying that is now a major factor when looking for a home.
Rightmove spokesman, Tim Bannister says
It’s clear that the current incentives aren’t yet big enough to make people sit up and take notice, and even the incentives that do exist aren’t easy to find out about.
He further adds
The days of building energy inefficient homes is already over, and we need to get to the point when running an energy inefficient home is a thing of the past. People need to know what to do, in what order, why they are doing it, and what benefits it will bring. Our analysis does show that our housing stock is going greener, but more needs to be done to speed it up.
Rent Controls are not good for the PRS
The NRLA has run a survey via YouGov, and they claim that 37% of landlords would reduce their number of let properties if any form of rent control was bought in. They add that this would be catastrophic for the supply of housing and put more pressure on the ever increasing demand.
Often, these measures give no incentives for landlords to invest in property upgrades, and tenants tend to stay put, making the problem worse.
Whilst the English government has no plans to introduce these measures, clearly Scotland has decided otherwise.
NB We wrote about rent controls here.
New Scottish reforms for landlords & rent controls to stay
First Minister Humza Yousaf has this week set out his plans to introduce a new housing bill giving tenants more rights whilst also dealing with homelessness and rental housing supply shortage.
Yousaf wants to give councils more powers to raise council tax on second homes and to purchase empty properties that can be converted into affordable housing. They will also invest £750 million into new affordable homes. He says
The Scottish government will continue to work with vital stakeholders across landlord and tenant groups as it crafts a tailored approach to this crisis that suits Scotland’s unique needs.
He has also stated that the Scottish rent freeze will remain until 31st March 2024. However, a coalition of landlords and letting agents are seeking a judicial review of this legislation.
Slow progress of reform bill impacting older tenants
A third of older tenants are living in fear of being evicted, according to Shelter, and the slow progress of the Renters Reform Bill is not helping their cause. They claim that every 16 minutes, a tenant over the age of 55 is being evicted. Shelter is now pushing the government to ‘scrap no-fault evictions and protect at-risk renters from the threat of Section 21’.
Polly Neate from Shelter says
We hear from hundreds of over-55s who have worked for decades in search of safety and security later in life – it’s a disgrace that so many are being stripped of a stable home by the gross injustice of Section 21 no-fault evictions.
The government must keep its word, and get the Renters (Reform) Bill over the line. Tenants are tired of waiting for a system that makes private renting safe and fair for all.
Other experts have pointed out that despite S21 going, landlords will still be able to evict under mandatory grounds such as selling or moving back into the property.
Snippets
Industry survey shows continued opposition to S21 abolition
Deprived areas hit hardest by shortage of rental stock
Tax (not rental reform) is real reason why landlords quit – claim
AGAIN? Landlord quizzed by seaside council over licencing renewal plans
John Lewis faces ‘extreme challenge’ over property projects profitability
UK rents rise faster in deprived areas – and drag more people into poverty
Newsround will be back next week