industry news
Almost 800 households evicted per week last year in England and Wales
or 112 per day, official figures from the Ministry of Justice show. However, these figures are about three per cent below their peak of 42,054 evictions in 2015. Another 138,000 households are at risk of
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losing their rented home as a result of possession actions in the courts. Homelessness charity Shelter has blamed benefit cuts and affordable housing shortages for the high level of evictions while Government ministers claim the reasons are more complex. Campbell Robb, chief executive of Shelter,
said: "The news that tens of thousands of renters have been evicted from their homes in the last year is a sobering reminder of the impact of welfare cuts and the severe lack of affordable homes.”
Falling
The latest figures for the quarter ending on 30 September 2016 show the number of claims made by private sector landlords to re-possess their rented properties have fallen by 21 per cent over the past two years. According to Ministry of Justice figures, the
number of possession claims made to County Courts in England and Wales by private landlords fell from a high of 6,486 in the first quarter of 2014 to 5,129 between July and September 2016. The Residential Landlords Association says
these figures prove that private landlords are not making decisions to take possession lightly and they are committed to providing long-term housing solutions. RLA Policy Director, David Smith, said “The figures are a timely reminder that landlords do
total of 40,899 homes were re- possessed by bailiffs in the 12 months to October 2016 - equivalent to 787 a week
not seek to re-possess properties lightly. With tenants also living an average of four years in private rentals, the sector is stepping up to the demand for long term housing without the need for heavy handed legislation.”
Claims
The figures also show that in the July to September 2016 period, the majority of landlord possession claims – 20,753 – the equivalent of 60 per cent were social landlord claims. Private landlord claims made up just 15 per cent. The remaining 25 per cent were accelerated
claims, which can be used by all landlords and do not require a reason to be given. These are unpopular with tenants, but their use has more than trebled since 2009. The figures also show landlord possession
claims (34,414), orders for possession (26,157), warrants of possession (18,450) and repossessions by county court bailiffs (9,689) were down on the same quarter last year. The RLA believes more can be done to help
landlords offer longer term tenancies without the need for compulsory three or five year tenancies, for example the removal of barriers such as mortgage and leasehold conditions that may prevent them from doing so.
“In the July to September 2016 period, the majority of landlord possession claims – 20,753 or (60 per cent) - were social landlord claims. Private landlord claims made up just 15 per cent.”
London council hopes to renew its licensing
Newham Council in east London hopes to persuade the Government to allow it to extend its borough-wide licensing scheme for private landlords beyond 2018. They were the first council in Britain to require
all private sector landlords to apply for a licence, in a pioneering effort to improve the poor housing conditions existing in Newham. Now Housing Minister Gavin Barwell has
told Newham councillors they will have to re-apply under stringent new conditions introduced in 2015 if they want the scheme
to continue. He said “The Government does not support
unnecessarily large and selective licensing schemes. Such an approach is likely to be disproportionate and it creates additional needless costs for reputable landlords, which are then passed onto tenants.” Councils can expect to receive approval for
licensing schemes covering small parts of their area (up to 20 per cent), but need specific approval from the Communities Secretary for an authority-wide scheme.
Giant PRS landlord reports increased profits
The country’s biggest private landlord has posted a 64 per cent increase in profits amid a huge upsurge in demand for rented accommodation. Grainger’s annual results show its pre-tax
profit has increased to £84.2m with net rental income up by 15 per cent to £37.4m. Asset sales raised £71.5m while £389m of new investment was secured to grow the business further, from its existing base of 18,000 tenanted properties. Baroness Margaret Ford, chairman of
Grainger, welcomed the results saying “We are shifting the nature of the business from a traditional trading model, heavily reliant on house price inflation as a driver of capital value, to an investment model with a sustainable and visible income stream from well-run private rented residential homes” Predicting further growth based on a
strengthening private rented sector in England, Helen Gordon, chief executive, said “The demand for renting is growing and this trend is set to continue. Ten years ago, one in ten households in England rented privately. Today it is one in five. In London, it is one in four. PwC predicts that 1.8 million new rental homes will be required by 2025 to meet demand. “This demand, coupled with positive
support for the build- to-rent sector and large scale institutional investment in the PRS, presents Grainger with a very compelling opportunity. “As the UK market leader in the residential
rental sector, we are targeting investment in the PRS in key target cities where demand for renting is highest and local economic prospects are greatest, including cities with top universities and good graduate retention, teaching hospitals and strong professional services. Our top five target cities are: London, Manchester, Bristol, Birmingham and Leeds.”
www.housingmmonline.co.uk | HMM January 2017 | 17
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