11^th Nov 2018

It is highly probable that the first council run lettings agency will have to be 'laid to rest' as it reports losing more than £53,000 on managing only twenty five properties for landlords.

Flintshire Council's Leader Live news website says North East Wales Homes - also going under the name of NEW Homes - was set up by the council in 2014 and presently manages 25 properties for private landlords.

At a recently held meeting the council announced its intention to scrap the lettings agency as it only received £20,000 in fees this year whilst incurring the annual costs of more than £73,000.

Neal Cockerton, the council’s chief officer for housing, reported: “The challenge for this scheme is that properties are not let at market prices so the rental income is lower. In order to be competitive and attract landlords, the management fee must be lower than high street agents.

“Therefore the council is taking a lower percentage management fee from a lower rent income and is unable to maximize fees and charges to either tenant or landlord. This makes available much needed affordable and well managed properties in the county, but presents considerable challenges financially.”

Cockerton points out, rather ironically, that since the introduction of Rent Smart Wales by the Welsh Government, numbers of landlords working with NEW Homes had fallen dramatically.

The agency has further plans to scrap its scheme for people aged 55 +, which allowed them to lease their homes to access better suited sheltered housing.

The meeting should finalise a councillors' report on how the council will find an alternative for the agency within the PRS sector.


News Archive »