RLA : RPI : Homes shortage?

News from the Residential Property Investor, the bi-monthly magazine for RLA members

other artilces from the August / September 2002 issue

Homes shortage? - August / September 2002

The UK requires 4m 'new' homes in the next 15 years and there is an increasing demand for private and short term renting. Yet, at any one time there are over 750,000 empty homes in the UK - some 620,000 of them in the private sector. There are bedrooms going spare in around another 14m homes.

Housing requires private investment. However there are too many disincentives to upgrading and converting under utilised properties and letting them out. Local authority planning regimes, HMO regulations, erratic enforcement, registration schemes, special control provisions, licensing, compulsory purchase threats, and other local authority 'initiatives' create greater risk and actively discourage quality investment.

Possession procedures are biased in favour of the tenant. Tenants clearly in breach of their agreements and significantly in arrears are being allowed extended 'free' accommodation due to suspended possession, slow court procedures and lack of bailiff action. The tax regime does not encourage responsible long-term renting or renting to be operated as a business.

Housing benefit and regulated rents do not match market rents or give an economic return, while housing benefit is particularly discriminatory against under 25s. The administration of housing benefit is a national disgrace with 99 per cent of landlords citing this as the reason for not accepting tenants in receipt of housing benefit or not investing in such accommodation because of the unquantifiable and therefore unacceptable risks involved.

Where there's a will there's a way. But is there a will?

Martin J Moylan

other artilces from the August / September 2002 issue

RPI news archive