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PRS Landlords Victory On Selective Licensing By Local Authorities

PRS Landlords Victory On Selective Licensing By Local Authorities

PRS Landlords Victory On Selective Licensing By Local Authorities

Housing Minister, Brandon Lewis

Housing Minister, Brandon Lewis

Government Housing Minister, Brandon Lewis MP (pictured right), has announced that the selective licensing of private rental sector (PRS) landlords by Local Authorities will require Government approval from 1st April 2015, if they plan to license a large geographical area within borough or city boundaries.

Local authorities have had the power to licence landlords across an entire borough since 2010, in an attempt to combat community issues, such as anti social behaviour in troublesome areas. This blanket approach has seen a sharp increase in the number of selective licensing schemes being introduced by local authorities across the UK, much to the chagrin of landlords.

The changes to local authority selective licensing powers mean that councils will now need Government approval before they are allowed to implement a selective licensing scheme that covers a large geographical area of their council borough or covers an area that contains a proportion of private rented properties, expected to be around 20% of the local private rental market.

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HMRC want to sell tax details to private sector companies

HMRC want to sell tax details to private sector companies

HMRC Want To Share Your Data With Private Companies …For A Fee, Of Course

New proposals could see HMRC sharing personal tax data with private sector companies, if the plans being considered by Her Majesties Revenue & Customs (HMRC) come to fruition.

If the proposal gets the go-ahead from the Government it would allow HMRC to lease  tax data to third party companies including private firms, researchers and even public bodies, earning them a nice amount of additional revenue.

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Funding Boost For Government Build-To-Rent Plans

Funding Boost For Government Build-To-Rent Plans

Finance Secured To Build Thousands Of
Affordable Properties For Rental Purposes

Government housing minister Kris Hopkins has welcomed a deal that will release £500 Million (GBP) of additional funding to build new affordable residential properties in the UK.

The new investment finance has been secured through an agreement with the European Investment Bank (EIB), that will help deliver up to 4,300 new and affordable homes to rent in areas of the UK.

The funding is set to form part of the £3.5 Billion (GBP) Affordable Housing Guarantees programme, which enables housing associations to use Government guarantees to secure private investment at more competitive rates than they would otherwise be able to secure.

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Government Manage To Lose Housing Minister

Government Manage To Lose Housing Minister

Government Reshuffle Does Away With

Housing Minister Position

Mark Prisk, the (now former) Government Housing Minister and Conservative MP for Hertford and Stortford, lost his Government position after the cabinet reshuffle last Monday.

 

New Under Secretary of State - Kris Hopkins will be responsible for Housing

New Under Secretary of State – Kris Hopkins will be responsible for Housing

Housing will now be part of Conservative MP for Keighley, Kris Hopkins responsibility as he steps into a new Government role as Under Secretary of State, rather than Housing Minister and he will be deputy to the Secretary of State.

Mr Hopkins is another former leader of Bradford Council, like his ministerial counterpart, Eric Pickles.

News of the ministerial reshuffle was broken last week via the Government’s Twitter site and also by Mark Prisk himself via Twitter, however on the Conservative Party website it was alleged that Mr Prisk had been asked to step aside due to his reluctance to undertake media interviews rather than his actual work.

Government Manage To Lose Housing Minister

Government Manage To Lose Housing Minister

The Conservative MP tweeted “Been asked to step aside for Housing for a younger generation. Disappointing but its been a great eleven years on frontbencher”

Reflecting on the property market recently, the Hertford and Stortford MP commented: “As a Government we have worked hard and prioritised limited financial resources to help the housing market through one of its toughest times and create the right conditions for it to flourish.”

Mr Prisk inherited the Housing Ministers job from Grant Shapps, who was promoted to Conservative Party Chairman, in September 2012. His previous roles included working on the Government’s Construction Strategy at the Department for Business, Innovation and Skills.

Richard Lambert, Chief Executive Officer of the National Landlords Association (NLA), commented on the cabinet reshuffle stating: “The NLA is pleased to welcome Kris Hopkins as Parliamentary Under-Secretary of State. We hope the incoming minister will take a proactive and holistic approach to addressing the issues facing the housing sector exacerbated by the shortage of housing supply. However, it is extremely disappointing to see the Coalition reduce the significance of housing within Government. Given the significant challenges facing households throughout the country it is essential that housing takes centre stage in political debate. We hope the apparent demotion of the housing portfolio from Minister of State to Under-Secretary of State does not reflect a change in priorities from the Government ahead of the General Election in 2015.”

Green Deal Is A Joke

Green Deal Is A Joke

Bad Business Practices, Long Term Debts, Unqualified assessors – Green Deal getting bad press

The Government heralded the launch of the “Green Deal” in January this year as a groundbreaking flagship initiative that would help struggling families cut energy bills, however, it appears that the general public are 99.9% against the idea.

The intention of the Government was to encourage millions of UK home owners to take out “Green Deal” loans in order to pay for money saving improvements to properties, such as; loft insulation, double glazing, boilers and other energy efficient measures with the aim of cutting a typical family’s energy costs by as much as £50 a month.

The loan would be repaid over an agreed timescale of up to 25 years, but the debt is attached to the property rather than the current owner, which means the debt could be passed on to any new buyer. As a result, property vendors could face demands from prospective buyers to clear any outstanding debt, which could also see them facing a charge or early repayment penalty of up to £6,000 (GBP).

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What Lord Freud Had Say To The RLA

What Lord Freud Had Say To The RLA

Welfare Reform Minister Speaks Out On Universal Credit

Controversial welfare reform minister Lord Freud has spoken exclusively to Residential Property Investor magazine, published by the Residential Landlords Association.

Universal Credit was originally intended to be a fundamental reordering of the UK’s welfare and state benefit system, however when policy guidelines were announced, the reforms dealt private rental sector landlords a cruel blow, as it was decreed that landlords with tenants claiming local housing allowance (LHA) would no longer receive direct payments, even if they believed that the tenant was in an extremely vulnerable position.

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Government Offers Direct Payment Guarantee For Social Landlords

Government Offers Direct Payment Guarantee For Social Landlords

Private Rental Sector Landlords
Expected To Fend For Themselves

PRS landlords were left furious after the Government Welfare Reform minister offered social landlords the opportunity for direct payment of housing benefit under the Universal Credit scheme, but there was no such offer for private landlords.

Government Welfare Minister, Lord Freud has offered landlords a series of small concessions over Universal Credit, with payment of housing benefit to tenants temporarily suspended if rent arrears exceed two months. However, this only applies to social housing landlords, i.e local authorities and housing associations and not private sector landlords.

Lord Freud confirmed that direct payment of housing benefit to tenants who are at least two months’ behind with their rent, would be suspended, with the total amount of rent outstanding paid back to social landlords within six to nine months.

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Government Funding To Boost Shared Tenancies For Homeless

Government Funding To Boost Shared Tenancies For Homeless

£1 million Government funding boosts rental options for single homeless people

This week, Communities Minister Don Foster announced a cash boost of up to £1 Million (GBP) to support single homeless people providing access to shared tenancies within the UK private rental sector.

The funding is intended to help homeless people to find a safe and secure home in shared accommodation or Houses of Multiple Occupation (HMO’s) in private rented sector (PRS) properties.

Mr Foster allocated up to £800,000 (GBP) for homelessness charity Crisis to fund schemes to set up new shared tenancies for single homeless people within the UK’s private rented sector.

The minister also announced a further £230,000 (GBP) for the charity to continue its Private Rented Sector Access Programme, which works with local landlords to help vulnerable people find the homes they need in privately rented accommodation.

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Even MP's Think Landlord Immigration Checks Are Unworkable

Even MP’s Think Landlord Immigration Checks Are Unworkable

MP’s Question Immigration Checks By Landlords

The Governments plan to make private rented sector (PRS) and social housing landlords legally responsible for checking the immigration status of all tenant applicants has raised questions on the policy from MP’s.

The proposal to make landlords perform immigration checks on tenants and prosecute those who fail to comply has caused outrage among UK PRS landlords, who would be expected to be doing the UK Border Agency’s work without payment.

Following the outline of the new proposals, Shadow Home Secretary, Yvette Cooper, a former housing minister, told the House of Commons during a lively debate on the Queens speech that landlords performing immigration checks on tenants would be unworkable, stating that: “The Government cannot tell us how their policy will be enforced, because they do not know who the landlords are and they will not have a statutory register.”

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Gov Insist Direct Payment Deal Is Bringing PRS Rents Down

Lord Freud, the Government welfare reform minister, has claimed that the majority of UK landlords of benefits tenants have dropped their PRS rental prices in return for getting direct payments.

Government Out Of Touch On PRS Rents

Government Out Of Touch On PRS Rents

The “out of touch” statement does not reflect what is really happening in the UK Private Rental Sector or the rise of PRS rents and is giving misleading information to existing landlords.

The Government temporarily extended the discretion of local authorities to make direct payments to landlords last April when caps to Local Housing Allowance (LHA) were introduced, paying a maximum of £400 a week for a four-bed property.

Private sector landlords were told that they could only receive direct payment for tenants claiming benefits if they lowered their PRS rent. This simply is not true!

According to the essential landlords handbook written by theLHAexpert.com – UK Landlords can still receive direct rent payments for tenants claiming benefit if the tenant is classed as vulnerable.

Speaking at the National Landlords Association (NLA) annual conference, Lord Freud said “The measure has been very successful. In London alone, a third of claimants who tried to renegotiate their rent received a rent cut. This arrangement will stay in place for housing benefit claimants, prior to the move to Universal Credit. There has been no mass exodus of people moving out of city centres or widespread homelessness because of our housing reforms.”


Hmmm… I was under the impression that some local authorities had been criticised for shipping families out of their boroughs, in a bid to avoid local authority overspending on PRS rents…and London is the worst culprit!

In a report titled “Between A Rock And A Hard Place: The Early Impacts Of Welfare Reform On London”,by the Child Poverty Action Group and Lasa, a welfare rights charity, found that many councils are actively considering obtaining accommodation elsewhere, while others believe that making up private rent shortfalls will leave the authorities with gaping holes in their budgets. The report also predicts that 124,480 London residential households will be hit by a combination of cuts to Local Housing Allowance, the new benefit cap which means no household can claim more than £26,000 a year in total, and under-occupation penalties.

According to a survey in the Guardian, some London councils are already acquiring properties in Kent, Essex, Hertfordshire, Berkshire and Sussex, and are considering accommodation in Manchester, Hull, Derby, Nottingham, Birmingham and Merthyr Tydfil in South Wales.

This is despite guidance issued by former government housing minister, Grant Shapps telling councils in May 2012, that they must “as far as is reasonably practicable” offer accommodation for homeless families within the borough.

Prime Minister David Cameron told MPs last January at Prime Minister’s Questions that housing benefit reform had brought private rent levels down, a claim repeated last month by, newly appointed, government housing minister, Mark Prisk.

Local councils in London say that because of buoyant demand, Private Rented Sector (PRS) landlords see no reason to drop rents for benefits tenants, and that many landlords have already refused to accept applications from tenant’s claiming benefits.

So Mr Cameron does refusing tenant’s on benefit qualify as reducing LHA rents?

Just because there has been a drop in Government and local authority spending on LHA payments, it does not support the Governments claims. The real truth is that the Government are putting the squeeze on the UK PRS as they fear that landlords will make more profit than the government can either control or even tax.

Such a shame that the people who are supposed to be in charge of our country are so out of touch with the real world, especially in the wake of Friday’s post about “Record Rental Prices”.

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