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News Article

"In May, you MUST give your Tenants the Renters Rights Information Sheet or

YOU RISK  - £7,000 FINE  PER TENANT PER PROPERTY."READ MORE

Trade Body Blasts Housing Rate Freeze For Slowing Down BTL Homes Investment

16th Oct 2023

The housing benefit rates freeze according to a trade body is a “travesty”  that the government must scrap immediately as it continues to punish tenants because of inadequate supply of housing.


Image credit: iStock

The trade body’s representative warned the attendees of this at a Labour Party conference fringe event which it held with think tank DEMOS.

When facing questions about how the freeze had impacted landlords and tenants the trade body’s Chris Norris summarised it as “completely unworkable”. He explained his viewpoint that the freeze puts a “brake on social mobility, a brake on access [to rented housing] and a brake on investment” which has seriously impacted the number of new rental homes.

The government housing benefit rates remain frozen for the third year running which makes the benefit support applicable to market rents in 2020 rather than current prices.

The Institute for Fiscal Studies (IFS), says that only 5 per cent of rental homes advertised on Zoopla are affordable for housing benefit recipients because of the freeze.

The trade body demands the government to unfreeze the rates immediately or else be responsible for causing the ever growing number of claimants being unable to afford suitable accommodation.

One of the attendees at the fringe event, Stephen Cowan, the Hammersmith and Fulham Council leader, who is leading an independent review of the private rented sector for Labour, said the private rented sector has a “vital role” to play.

However Cowan also stated the importance of supporting housing supply increases across all sectors.

Norris agreed with Cowan’s sentiment but sent out a stark warning that government policies affecting the PRS have failed renters as there are no real incentives to encourage much needed levels of private rented homes’ investment.

He said that the policies had made it untenable for tenants as they had little or no choice where they could live, which in many cases has led them having to accept poor standards of housing from ‘rogue’ landlords.

Norris said: “We welcome the recognition from all the panellists of the importance of the private rented sector.

“If they win power, Labour will need to tackle fundamental challenges in the rental market. It will need to tackle the chronic lack of private rented homes which is making it harder and harder for renters to find anywhere to live.

“The unjust housing benefit freeze will need to be scrapped, and a future Labour Government will need to do more to root out those landlords providing unsafe housing and bringing the sector into disrepute.

He added: “None of this will be easy, but we stand ready to work constructively with the party to secure a rental market that works for tenants and responsible landlords.”


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"In May, you MUST give your Tenants the Renters Rights Information Sheet or

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Fit for Habitation|March 2019 The ACT is intended to define minimum standards a rental property MUST be and makes a clearer pathway way for Tenants to be compensated|https://www.pims.co.uk/fit_for_habitation_act_march_2019/ Guarantor|The person who provides a guarantee and promises to make payment good should the person responsible for the agreement fail|http://www.pims.co.uk/guarantors/ MEES|The Minimum Energy Efficiency Standard (MEES) Landlords are charged with the requirement to bring their rental property to a minimum EPC rating of E. Property with F and G rating will effectively be banned from the rental market April 2018 |http://www.pims.co.uk/epc/ Section 11|Section 11 of the Landlord and Tenant Act 1985 places an obligation on the landlord to maintain the structure and exterior of the property, including installations for the supply of water, gas and electricity, heating systems, drainage and sanitary appliances|http://www.pims.co.uk/landlord-section-11-repairs/ serving date|This date is the date deemed received at the property - as an example if posted allow for posting days|/serving-notice-on-a-tenant-delivery-days/ Tenancy Application|The objective of vetting is to empower yourself so you can make an informed decision as to the calibre of the prospective person. Making your decision on facts and figures is invaluable and this is why you should always take references. The application form also provides you with permission to perform credits. This form details all the information you should ever require deal with most eventualities including absconding tenants|http://www.pims.co.uk/doc/57/ Tenant Fees|From June 2019 where renting properties in England gone are the days of charging for admin, letting fees, vetting, references, inventory, check in, check out, cleaning, pet insurance or ANY other fee that is not explicitly permitted within the legislation. |https://www.pims.co.uk/ban_letting_fees_act_2019/