Have you ever thought that tenants need more rights within the private rented sector? Well at the beginning of 2015, respected think-tank Civitas aired their views on tenants in the PRS being given new rights to stay in their homes for as long as they wish.
To prevent North West landlords exploiting the shortage of homes to choose from, Civitas believe that tenants who rent should be provided with a guarantee that their rent will not increase above inflation. They also want tenants to be gifted new rights that would give them the same level of security as an owner-occupier; protecting them against retaliatory eviction and, in essence, allowing them to ‘rent for life’.
Did you know that 40% of the UK’s housing stock is currently privately rented?
And with predictions pointing toward the PRS accounting for one third of the UK’s housing stock by 2032, this would have significant repercussions and implications for UK buy to let investors and the future of the private rented sector, let alone the tenants themselves.
The report also claims that an increasing lack of affordability in the sector is being reflected in an expanding housing benefit bill for taxpayers, and that the amount of housing benefit rent subsidies claimed in the PRS has more than doubled (in real terms) over the last 10 years.
However it fails to mention the effect on PRS landlords when tenants fail to pass on their housing benefit portion of their rent, which leaves the landlord out of pocket and struggling to pay their mortgage. Furthermore, many still believe the ill-conceived perception (fuelled mainly by the mainstream media) that all landlords are ‘mega rich.’ We can honestly say that this is simply not the case anymore, as our average landlord client actually owns 1-2 properties and has 1 or more other jobs alongside their buy-to-let nest-egg.
At Ainsworth Lord Estates we completely agree that as private renting grows it is very important to ensure a fair deal to those who have little choice but to rely on it. However, building growth should not be hindered and new buy-to-let investors should not be deterred from the market by ill thought out proposals either. Especially in the North West, where the amount of regeneration schemes are increasing as part of the former housing market renewal programme.
- What do you think would happen if private tenants were given these new ‘rights’?
- Would this help good tenants or enable the fraudulent ones?
Whatever your views are on the issue please share them with us.
Want to let out your property in the North West, be it in East Lancashire or Liverpool, without the hassle of tiresome legislation and management issues that come with self-management? Then please get in contact with us today, as landlords ourselves we fully understand the importance of finding the right tenant, keeping on top of maintenance and of course rent arrears.
We look forward to hearing from you and becoming a successful and integral part of your buy-to-let experience!.