Think Tank claim Private rental property should be ‘acquired’ for social housing!

Apparently, the private rented sector (PRS) needs to be repurposed to create a new generation of social homes, according to a charity think tank. 

The report from the New Economics Foundation (NEF) says that private rented property should be “acquired” and used for social housing.

The NEF says it will explore how councils can use revised compulsory purchase order laws to force PRS landlords to adhere to enhanced lettings standards while also re-purposing PRS accommodation as social housing.

‘Compulsory purchase orders to reverse housing flow back to the Social sector’

According to the NEF since the introduction of Right to Buy in 1980, there have been a flow of homes from the social sector to the private rented sector (PRS).

The report says: “This has skewed our entire housing system, generating significant unmet, acute housing need and trapping millions in the private rental sector. It follows that reversing the flow of these transactions ­– from the PRS to the social sector – offers a clear path to resolving many of the deeply entrenched problems in England’s housing system.”

Socially rented homes in 2021-22 made up just 17% (4m) of England’s housing stock, compared to 31% in 1980 (5.4m), according to the report.

Existing private rented homes should be upgraded to ensure they are energy efficient

The report calls for existing private rented homes to be upgraded to ensure they are energy efficient.

They claim in 2021, 55% of PRS homes Energy Performance Certificate (EPC) ratings of D or below, according to the report.

Ministers have previously indicated that by April 2025, newly rented properties in England and Wales will need to meet a minimum EPC  standard of C – tougher than the current E standard. The regulation might also apply to existing tenancies from 2028.

However, the government has not yet detailed how these goals will be achieved and many landlords remain uncertain about what EPC rating will be required and the cost implications.

The report said: “Over two years have passed since the government closed its consultation on the proposals for stricter energy efficiency standards, and landlords, tenants and the retrofit industry remain in the dark about what improvements will have to be made, the
timeline for doing so, and whether and at what rate spending caps will be applied.”

The report continued by saying: “The Resolution Foundation has recently argued that the government must “get tough” and impose regulation on homeowners and PRS landlords to upgrade homes – which they expect to cost £60bn across all tenures – at the required pace.”

If you can stomach it the full report can be seen here

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