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

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

15:13 PM, 16th February 2023, About 2 years ago 18

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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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Robert M

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12:33 PM, 17th February 2023, About 2 years ago

Many private landlords are already fleeing the sector and selling their properties, and I'm aware of some, e.g. Mick Roberts, who I believe have even contacted their council and asked their council to buy their properties. As far as I'm aware, the council has not taken him up on his offer! (nor has his tenants, for whom he has also offered to pay their mortgage deposit).

Where will the councils get the additional £billions to start buying up (whether by compulsory purchase or otherwise) all these properties?

NewYorkie

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12:35 PM, 17th February 2023, About 2 years ago

In 1980, my Mother was able to buy her first home with a large deposit provided by her housing association in the middle of London. We had grown up in a large, Thomas Cubitt Georgian house, which was acquired by the housing association when it's lease expired. When we had all left home, she was left with a 4 bed house with a separate flat in the basement. Paying her to leave was sensible and provided a large home for a needy family.

There should be more of this, but this report is just an obfuscation of the real problem, which is insufficient social housing, and a rapidly increasing population who believe they are entitled to it.

Blodwyn

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14:55 PM, 17th February 2023, About 2 years ago

Reply to the comment left by Beaver at 17/02/2023 - 12:23
Beaver, I suggest you are a little unkind sniping at lawyers if the plonkers you elect do silly things? You, Martin and Northern Landlord are all right.
BTW, are we the taxpaying suckers paying for this corbynized rubbish dressed up as thought?
I never lived in a council house but it seemed good councils = good housing. Cowpen at Blyth Northumberland wasn't rubbish, most were bought under Right to Buy when if I recall correctly the questions of supply & demand began to surface? Why don't councils do some building?

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23:32 PM, 17th February 2023, About 2 years ago

Reply to the comment left by martin berg at 17/02/2023 - 11:51
Totally right. It's a stressful race to get rid of them now. Wish I'd started sooner!

Judith Wordsworth

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8:56 AM, 18th February 2023, About 2 years ago

Reply to the comment left by Luke P at 17/02/2023 - 11:45
I suggested something similar to my MP. A £0 or 5% CGT for PRS landlords who have rented to those on housing benefit for 5 or 10 years.

Sadly not in place when I sold a rental property to the Local Authority year before last. They bought at market price too.

Judith Wordsworth

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8:59 AM, 18th February 2023, About 2 years ago

Reply to the comment left by Robert M at 17/02/2023 - 12:33
I sold one to the Local Authority year before last at market price. They had a fund to buy back ex LA housing.

I had bought it as a repossession from the 2nd owner after a Right to Buy.

Mick Roberts

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16:01 PM, 18th February 2023, About 2 years ago

I'll sell all mine to the Councils if they can promise to keep the tenants in for 10+ years at same rent & no bedroom tax.
Many of mine REALLY do not want me to sell to the Council, even though I have said You should be safer with not increasing rents & Legislation forcing things upon u.

Reluctant Landlord

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10:20 AM, 20th February 2023, About 2 years ago

Reply to the comment left by Robert M at 17/02/2023 - 12:33
...by screwing us over by paying more tax....

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