Welsh government to encourage PRS to lease to local authorities to prevent homelessness

However, most mortgage lenders will not allow a lease of 5 years, let alone 20.

Nothing new here. Private sector leasing schemes have been tried several times over several decades, by both local authorities and housing associations.

These schemes have had different names, (anyone in social housing remember HALS?) but they never really took off in a big way, despite being a good idea in theory. I recall writing a proposal for such a scheme back in 2005 when I worked in a local authority homelessness department, but it was rejected by senior management so never went any further in that LA.

The general failings of these schemes, in the past, have tended to be the bureaucracy involved, and the LA (or HA) trying to reduce the rent paid to the private landlord to below the LHA level (supposedly to cover the running costs of the scheme). This combined with the PRS landlord still being liable for many repairs which they assumed the LA would be responsible for, meant that the schemes were not quite attractive enough to the PRS landlords. - Maybe the new Welsh scheme will be more attractive to private landlords.

Welsh landlords to encourage government to understand the industry and be realistic in their expectations by FULLY underwriting their obligation to house the most vulnerable and high-risk tenants.

Reply to the comment left by Neil Patterson at 30/11/2021 - 10:27
I managed to get lender approval for 10-year leases to the LA over a decade ago, but at the eleventh hour the Council backed out because their gut reaction was they'd be 'too exposed' (to repair bills). I could've single-handedly solved the local homelessness problem as, had it gone ahead as expected, would have made 350 properties available to them on 10-year deals.

This is the same Welsh Government that is getting into bed with the anti private landlord party that is Plaid Cymru who are proposing further taxes on 2nd homes and rent controls. Why would we trust the local authority to get into a business partnership with?

Why not just cut off & stop bringing in ALL the retrospective legislative punitive Anti-Landlord policies in the first place which is why we're where we are, where Benefit tenants can't get a house any more.
It really is simple.
Stop Selective Licensing.
UC direct payment to Landlords.
All the other tripe.
And then we may not have to pay the colossal cost of this homelessness & reduce the £6 billion pound error in DWP overpayments at the same time.

lol

I let my own main residence whilst serving overseas on a two year posting. When we came back, the DSS tenant did a 'moonlight flit' half expecting us to want early possession. Being on a payment gas meter, the CH stalled once the gas ran out and one frozen burst pipe and hours later we had lost 3 ceilings and half a downstairs wall (plaster). It THEN took said housing association 6 weeks to send anyone in to survey for THEIR insurance and another 2 weeks before they put a dehumidifier in the house. To top it all off I got a nice letter from the water company reminding me not to waste water! ... not for me I am afraid. Once you let to council you lose all control over tenant vetting and who's going to serve the notice to quit once the tenant turns bad? Be warned!