August update on the private rented sector
Its hard to believe that we are already at the end of another summer and the kids are going back to school. As usual with this time of year in the lettings industry there does be talk about Student Lettings with advice on where is hot to invest and how to turn a healthy profit with student lettings.
At the beginning of the month, the organisers of the annual Resi conference produced a report that “contrary to widespread condemnation, private landlords who take tenants on Local Housing Allowance are not the ones pushing up the housing benefits bill“, but rather it is the social landlords who are raising rents. Taking this alongside the statistics released by the Department of Communities and Local Government that, although the most common form of preventing homelessness was using landlord incentive schemes, less of this happened in 2012/13 with a 5% drop from the previous year. Should social landlords continue to raise rents and local housing authorities make less use of landlord incentive schemes, the situation for housing may become more precarious with most likey the private rented sector being made to blame in the press.
Earlier in the summer after the Court of Appeal ruling in the Superstrike vs Rodrigues case on tenancy deposits, the consequences of the case where being widely discussed, and earlier this month Housing Minister, Mark Prisk, in a letter to the Residential Landlords Association informed that the “Government is “urgently exploring whether new legislation is required” following the Superstrike case.” As yet there has been no further update on this.