Rent controls by the back door perhaps. Please look at reports flagged up...
The Anti-Poverty Task group; hand in glove with Joseph Rowntree Trust & Savills have created a solution to the housing crisis. Yay.Not by building more houses, oh, no. The PRS is to be targeted/persuaded to accept 'Living Rents'. 40 per cent lower than market rents in areas populated by HB/UC recipients. Linked to 'generic income per household' in specific areas apparently! Sounded to me of rent controls by the back door.
The idea being is to reduce the HB/UC bill in certain areas because it's easy to gauge how much each family spend on rent...the HB claims tells LA that. Hey, the magic formula is to lower rents for Benefit Recipients so the LA pay LESS OUT in Benefits. Affordable rents are nominally pegged at 20 percent below market rents in each area. Even LOWER will be the 'Living Rents' geared to the or formula above.
J.Rowntree Report provides the evidence, Savills produces the solution. Do read the latter at least; to be prepared for the 'invite to discuss' if the Council can...in their future planning incorporate the needs of their landlords. Tongue in cheek or what. Be afraid, be very afraid.
I'm invited to participate in the bIG convo to help the LA to help their Landlords. I took the trouble to 1st read around the nuanced invite & immediately the St Valentine's Day massacre, or the massacre of the French Hugenouts sprang to mind. If you Licenced LL's out there get invited to a similar 'big conversation' about the ways that the LA can HELP their LL's..[ha ha] be forewarned about their covert agenda.
Again the PRS [ yes the much maligned PRS] are the knights in shining armour that as entreprenuers, are expected to take massive hits on tight profits. 40 per cent below market rents - GHn's LL's may as well sell their units to the LA. Hey, maybe that's on the cabalistic agenda too!
The 'sharpened knives seem to be out' for those accepting HB/UC customers. Savills have produced a magic formula to help tnts climb out of poverty. Not having every new on the market may help them climb out quicker! The keystone to this MASTER PLAN is the PRS...those fat cat LL's, those dreadful Rachmans of the lettings world. I read the findings of the Savills Report & compared it to 'turkeys voting for Christmas'.
The worrying part of this is that MILLIONS of HB/UC customers would certainly vote for 40 percent lower rents if it became part of a left- wing manifesto. What a vote winner that would be? Its social engineering of the highest order. I'd urge the RLA to read the two reports & reply to the proposals before they gather momentum. Rent controls would kill ambition [don't want to achieve more as our rents will rise]. Don't want to leave the crutch of Benefits, or our rent will rise.
Rent controls will bring dilapidated waste -lands as LL couldn't afford repairs on pepper-corm rents. Well, that would certainly bring house-prices down in specific areas.
We are not [when I last looked] ruled by a man with a comically severe haircut, or a man posing without a shirt and a definite botoxed visage. RLA please assist.
Want to read more?
This is a members only forum, if you want to read more you need to login to your membership, if you are not a member, click here to join.