1st
Nov 2014
The All Party Parliamentary group are strongly advising the government to change benefit payments, tax rules and planning regulations to give a helping hand to the younger private renters (mid 30's and under), to find reasonably priced accommodation from the private rented sector.
The Group reporting on the private rented sector said that to help improve the situation then a range of issues must be addressed. They want to see councils having their power taken away (or reduced) to block properties from becoming shared houses to rent. They are telling the government that they should seriously reconsider the present housing benefit restrictions imposed on those 35 years old and under, as this is another major reason why young people are finding it difficult to rent housing privately.
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The changes that the group wants to be introduced are:
A change in the VAT rules that will encourage a higher participation of property conversions into housing stock.
Get rid of council tax on bedsits.....or the very least introducing a lower band for bedsits, and thereby reducing the risk of single rented rooms becoming overpriced because of council tax contributions.
Look at the feasibility of paying private landlords rent direct to encourage more take up of renters on benefits.
Make changes to the Shared Accommodation Rate rules which at present only allows 35 years old and under housing benefit being equivalent to one room in a shared house . If new guidelines were introduced in some cases, so a single person's housing allowance could be higher to allow them a larger space. They also ask the question would this shrink the availability of reasonably priced rented stock ?
"Rent a Room" tax allowance to be increased to get more homeowners to rent out spare rooms for lodgers.
The government together with local authorities to address Article 4 Directions and planning permissions, as they are reducing numbers of new private rented.
Council powers over types of rental property can be useful however the group says it must be made easier for landlords turning family homes into HMO's.
Oliver Colvile MP, the group’s Conservative chairman, feels that councils may be fearful of “studentification” with areas being overpopulated by students. He says this probably the main reason why councils will restrict numbers of HMO properties.
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