Industry news
Calls to end banks’ discrimination against tenants on benefits
An influential private landlords’ group is demanding urgent Government action to tackle discrimination against benefit claimants by buy-to-let mortgage providers. It follows news that a landlord had her
mortgage revoked because she is renting to a benefit claimant. The Residential Landlords Association (RLA) says this matches findings from their own research and this should prompt the Government to end such practices by lenders. David Smith, Policy Director for the RLA
said: “With growing numbers of benefit claimants now relying on the private rented sector, it is shameful that many lenders are preventing landlords renting property to some of the most vulnerable in society with little or no justification. The banks have had long enough to get their house in order. It is now time to take firm action to stop such unjust practices.” The campaign was triggered by Nat West’s
refusal to give a buy-to-let mortgage to Helena McAleer, a landlord from Northern Ireland, who wished to release equity on her house after it increased in value. In discussions with the bank, she was told it was their policy not to allow rentals to benefit claimants. Helena McAleer said the bank expected her
to kick someone out of their home simply because of their circumstances. Ms McAleer has since started a petition calling for measures to tackle such practices which clearly discriminate against benefit and Universal Credit claimants. Research carried out for the RLA last year
found that 66 per cent of lenders representing approximately 90 per cent of the buy-to-let market do not allow properties to be rented out to those in receipt of housing benefit. In a letter sent to John Glen, the Treasury
Minister responsible for banking, the RLA is calling for: • The Government to use the influence it has in those banks in which it currently has shares to end such discriminatory practices;
• The Financial Conduct Authority (FCA), working with the Bank of England, to undertake a full investigation into the extent of this problem and prepare plans to end it; and
• The Equalities and Human Rights Commission to undertake a review of whether such practices breach equalities law.
The scandal of empty homes exposed
at more than 205,000 vacant properties across the country. Figures collated by the Empty Homes charity
T
from local authority council tax records shows that 37 of the 53 local authorities with 1.2 per cent or more of their homes long-term empty are in the North, nine are in the Midlands, and seven are in the South. Some groupings of authorities (i.e. counties
and combined authorities) stand out as having 1.2 per cent or more of their homes long-term empty as a whole. They are all in the North: Cumbria, Durham, Humberside, Lancashire, Merseyside, Northumberland, Tees Valley and Tyne and Wear. While there appears to be a strong link between
large numbers of empty properties in a locality and economic decline or stagnation, the report also revealed a disproportionate number of high value homes (in the most expensive council tax band) are also empty, being owned by companies, institutions and overseas investors. The council tax data does not show why homes
are being left long- term empty. However, the charity says there is evidence that in some areas people are purchasing properties not to rent out or use primarily as their own home, but for reasons that include finding a safe store for their wealth, seeking a high capital gain and keeping a place for occasional use. Such purchases are characterised as ‘buy-to-leave’.
16 | HMM November 2018 |
www.housingmmonline.co.uk
he number of long-term empty homes in England has risen for the first time since 2008 and now stands
FUND PURCHASES They claim that the general public wants both central and local government to place a much higher priority on tackling empty homes, with a favoured option being that councils and charities should be funded to buy and repair long-term empty homes to rent or sell to people in housing need. The Empty Homes charity is encouraging all
local authorities to introduce empty homes strategies for their areas, with the aspiration to reduce the number of long-term empty homes. It is also asking councils to work with owners of long- term empty properties – including landlords – to encourage, advise and support them to bring homes back into housing use. In its latest annual report it provides examples of
a number of innovative projects across the UK, many of which are offering grants or interest free loans to landlords to bring empty properties back into use. Since April 2013, local authorities have been
allowed to charge up to a 50 per cent premium on the council tax if a dwelling has been empty for two years or more. It is possible that this policy has had an impact on the willingness of people to tell their council that their property is empty so the actual figures could be even higher than are being reported. As of October 2017, 288 out of 326 authorities
reported that they were charging the premium on 60,898 empty dwellings across England. It is not clear why the remaining 38 councils are not using this mechanism.
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