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National scheme wants landlords to lease homes to councils

Details have been released of a scheme seeking to encourage private landlords to lease their properties to local councils.

The scheme in Wales is being coordinated by the Welsh Government and has so far won the support of 15 individual councils.

Landlords taking part in the scheme are offered a long term lease of five to 20 years, with guaranteed rental payments for the length of the lease at the relevant Local Housing Allowance rate, less an agreed management fee.


Where necessary, an offer of up to £5000, as a grant, to bring properties up to an agreed standard and/or to increase the EPC rating to level C. Additional grant funding of up to £25,000 is available for empty properties.

The councils also agree to undertake repairs of any damage to the property made by tenants covered, subject to reasonable wear and tear and the landlord’s liability for structural defects. This would form a term of the lease.


There would also be what the Welsh Government calls “a guarantee of appropriate support for tenants, throughout the lifetime of the lease.”

The scheme aims to increase access to, and the affordability of, renting privately in Wales. It is particularly aimed at tenants who are at risk of homelessness and are in receipt of benefits, including Universal Credit.

Councils which have thrown their weight behind the scheme are Blaenau Gwent, Cardiff, Carmarthenshire, Ceredigion, Conwy, Denbighshire, Gwynedd, Isle of Anglesey, Merthyr, Monmouthshire, Neath Port Talbot, Pembrokeshire, Powys, Rhondda Cynon Taf, and Wrexham.

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    They are having a laugh, LHA less a management fee ? no chance.

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    In essence it is likely to be a takeover, for free!

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    I wouldn’t use any of my current properties for this as they are above LHA rent levels, but I can see a potential opportunity of buying towards the lower end of the market to get the higher yield, and then hand it over to them for 20 years if they were prepared to guarantee the rent and deal with all issues and repairs.

    I imagine there will be a few landlords capitalising on this scheme but it begs the question, why don’t the councils just do this?

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    No thanks, I can get the same deal from Housing Associations without the management fee, HMO licensing conditions or adherence to Article 4 Directions. Try again.

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    There used to be similar schemes in this area and they seemed to work well from the landlords perspective. Not necessarily so good from a neighbours perspective. Back in the 1990s I lived next door to a 4 bedroom house that was leased to the council. For the first 5 or 6 years it was fine. Then they put a huge family of known troublemakers in and it was horrendous. Police round every couple of days, swearing, intimidation, etc. I actually moved house to get away from them.
    The only real flaw in these schemes is that people forget the human aspect. Tenants are people not just revenue streams or cases. They become part of the community they live in. If the wrong person is put in the wrong street it can cause huge harm. Councils and police know who the trouble makers are. There should be some duty if care towards the wider community when housing them.

    I sometimes let a couple of my properties via council schemes and so far haven't had any issues or fees. The most recent one was where the council matched the property to prospective tenants, prepared a full budgeting report, provided a deposit bond, paid the first months rent and made sure the tenants UC claim was up and running. I interviewed the tenant and could decide if I wanted them or not. Two years on he says he feels very settled, the neighbours are happy and it all seems to be going pretty well.

    Peter  Yednell

    If u have a veto, then maybe.. I have never used any Council scheme but know many who have and been left with considerable damage that the Council denies..

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    There's nothing new with this and for years Councils have been trying to win Landlords over in the hope the PRS will help out with the housing crisis and take some of the pressure off the Housing Department.
    Whilst I appreciate that not everyone on the housing list are problematic, there is certainly a high percentage; housing allowances 'paid' to tenants are falling very short of the rental prices being achieved and there are many instances where properties are not managed at all well by the authorities. Deposit bonds are handed over and don't always cover the damage done. Is the bill for the shortfall going to be constantly picked up by the council and if they have such a pot of money why don't they build their own housing?
    The carrot being dangled doesn't seem that fresh

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    Not a chance ! I can see some landlords going for it , those with properties in the lower market segment, and where the properties have a low EPC rating, they can then get a grant to bring it up. The average landlord will run a mile.

    PossessionFriendUK PossessionFriend

    Yes Simon, some properties might suit Landlords to lease to the Council, however, Housing rate is already Below market rate and so most councils are having to pay an incentive, r golden handshake to get much, desperately needed properties. Suggesting that once landlords have leased a property to the council, that they should then pay them to manage , what they have taken on under the lease, is a Pi$$-Take.

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    Their offers are so poor because they have no idea of business and no understanding of the sector. Wow! They will pay you a low rate and tie you into that low rate for 5-20 years! And they wonder why we don't bite their hand off...
    In addition, I too, have heard of landlords having their properties subsequently wrecked and the council not honouring their commitment at all to put it right.
    To landlords, in the main, 'the council' is the enemy. They persuade and cajole us into taking on risky tenants and then when things go wrong they are fiercely on the tenants' side, tell them to 'sit it out' during eviction processes, meaning terrible stress for landlords and what can be a huge financial loss.
    Maybe if they completely change their attitude, treat landlords like human beings, guarantee landlords against all losses, pay the market rent and so on we can talk - but that will be no time soon.


    You can be sure that any tenant coming from a council will be a tenant from hell


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