Private rental property should be “acquired” and used for social housing according to a think tank.
And it says tax penalties, laws demanding higher private sector standards, and even possible compulsory purchase should be considered to force landlords into the switch into the social housing arena.
A report from the New Economics Foundation claims that since Margaret Thatcher’s introduction of Right to Buy in 1980, there has been a flow of homes from the social sector to the private rented sector.
The NEF report says: “This has skewed our entire housing system, generating significant unmet, acute housing need and trapping millions in the private rental sector. It follows that reversing the flow of these transactions – from the PRS to the social sector – offers a clear path to resolving many of the deeply entrenched problems in England’s housing system.”
Therefore the foundation says that in addition to the building of new social homes, existing private rented homes should be upgraded to ensure they are energy efficient.
They should then be “acquired” and used as homes for social rent.
The NEF says: “Doing so equitably, sustainably and on a sufficiently large scale is far from straightforward, but the prize – improving the affordability and quality of PRS accommodation and delivering the social homes we so desperately need – is significant.”
The nub of the NEF approach is not included in the executive summary of the new report but is instead buried towards the end.
It says: “We will explore whether specific tax loopholes affecting landlords can be closed. This includes exploring whether taxes to which PRS landlords are currently subject – such as capital gains tax – can be reformed to encourage PRS stock transfer to social landlords. This could also close the gap between the higher rates of tax currently imposed on income than on capital.
“Furthermore, encouraging the professionalisation of landlords to provide higher-quality services means they ought to be treated as other self- employed persons are, and we will therefore also explore whether national insurance should be imposed on all PRS landlords, including short-term lettings.
“We will also examine reforms to short-term and holiday lettings regulations, as well as those regarding overseas property investment.
“Such proposals could therefore have the simultaneous effect of raising additional revenue from which to fund investment in upgrading and acquisition, enhancing fairness across the taxation system, improving the equitable distribution of housing, while also encouraging the overarching goal of transferring stock from the private rented sector to the social sector.”
And the foundation does not shy away from threatening to use Compulsory Purchase Orders in its bid to requisition private homes for social housing tenants.
It says: “We will therefore explore how councils can use revised CPO laws to force PRS landlords to adhere to enhanced lettings standards (deducting the costs of required remedial works from market valuations, for example) while also repurposing PRS accommodation as social housing.
“Furthermore, we will examine whether local authorities could obtain an equity stake in properties on which they can charge social rent and in order to fund any required remedial work, first buyer rights for these properties when the landlord wishes to sell, and/or whether they ought to receive a discount for purchasing it.
“In the event that landlords are to be provided with state finance – either grants or low-cost loans – to fund improvement works to comply with new legal property standards, our view is that the state ought to receive something of social value in return.”
You can see the report here.
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NEF = WEF
You'll own nothing and they'll be happy
The Chief Executive of NEF (Miatta Fahnbulleh) is the Labour Parliamentary Candidate for Camberwell and Peckham at the next general election, so her ideas may be influential in the Labour Pary. Harriet Harmann is standing down in that constituency.
The NEF housing adviser (Alex Diner) has been a Labour Party policy adviser and an Islington Councillor.
Ellie Edwards, Insightful info!
I will be voting the party that has been putting Great Britain first, to stop illegals invasion, and supporting veterans, despite being obstructed by politicians sending police to stop patriotism activities by classifying them as racism. Britain 🇬🇧 First have my vote 🗳️.
Here is hoping that Londoners will not vote for the Labour. The Labour mayor has destroyed London in every sense-alongside PRS.
Labour wants PRS destroyed, are planning wealth taxes and compulsory purchase orders to take over the assets people worked hard for.
Conservatives are selling U.K. Plc to EU, donating billions for wars whilst U.K. veterans/disabled/children & adults alike are suffering homelessness.
Only one choice remains at the next election- vote for Britain First.
Thanks Mr. Bhalla, but should we be needing to vote for the far right in order to retain the principle of the right to retain ownership of private property?
Surely that right should be enshrined in both Conservative and Labour party principles in a free democracy like that of the United Kingdom.
What are the policies of Britain First when it comes to the private rental sector?
Ellie - it *should* be normal and accepted by all parties, but clearly isn’t. They’re all in a rush to overturn and restrict individual freedoms which is exactly how more extreme parties win votes. I’m going further right than the Tories now. If I’d wanted leftist liberals I’d have voted for them!
I know how you feel James, but when you go further right is there protection of landlords' interests? There may be protection according to racial principles. I believe Hitler froze rents. I am not an expert on that era, but I think that was the case.
We can agree with each other without having to vote the same way. For me Reform party seems the best choice for me and my views and to be honest I'm not sure of their policies towards Landlords.
I don't care, I voted Brexit but still have a house in France.
Both can work!
I think the problem is that Labour may win with a massive majority at the end of next year or the beginning of 2025.
That appears to be their purpose
😂 these clowns 🤡 are getting just plain silly now. It’s theft… plain and simple.
They’ve been chipping away for some while now. If the Labour government get in at the next election, there really won’t be much point staying in the PRS and for the middle class and wealthy people- watch out!
The whole circus will be in town in 2024 🤡
Yep 👍 voting 🗳️ time is approaching.
Labour destroying PRS, increasing wealth tax, enforcing Socialism by CPO, opening borders to welcome all illegally, no visa needed to enter U.K. by anyone.
Conservatives - handing over taxpayers money multi billions and Defence Services equipment to EU for wars, selling U.K. Plc assets, more taxes, and discouraging PRS by BTR policies for giant corporations without ensuring safe builds and making people rent for life from only large businesses, no room for small PRS.
Best to vote for the party putting Britain First, the only political party supporting Veterans housing, highlighting illegals invasions, fighting for disabled & children’s rights.
Vote for Britain First.
Popcorn 🍿 ready for 2024 circus 🎪 during elections 🗳️.
Here here A Bhalla. I've never seen such a poor selection of politicians in living memory. We do need to put GB first.
So....
Compulsory purchase a PLP., at lower than market value, tax highly any capital gain. Reduce the housing stock in the PR sector and increase stock in the social housing sector.
Note no overall housing stock increase.
Result:
Screw the business person and nick their pension.
Reduce housing for folk who need want to rent, ie those that can pay their own way.
Provide housing to benefit claimants.
What complete load of utter nonsense.
If you work hard and provide for yourself, you get penalised...
How could this even be considered, what other investment asset has this,,
If they want more quality housing stock then build it. Force rougue landlords to fix damp etc its a simple bloody equation.
I'm not just going to sell my assets I shall be leaving the UK and pay tax to in to a country not run by morons.
I plan to leave once an elderly relative dies. Otherwise I would go now.
Spot on, but Labour are doing what Hitler did building up an Army of Voters that are brain washed. But like Hitler’s dream, it will all fail and the Country will be in financial ruins. Sadly this will take a few Years before Labour Voters wake up, does History tell these People nothing.
However I agree the Conservatives have made a total mess of our economy, but then no Government since the War has faced such difficult times.
2 thoughts:
1. Where is the money going to come from - certainly LAs don't have any. If we have money for this surely we have money to build social housing?
2. The social housing sector gain is the PRS' loss - so where are all the tenants who don't qualify for social housing going to rent?
The only way that they could make the entire private rental sector part of the social housing sector is to compulsorily purchase everything cheaply. Everyone who wanted to rent would then have to apply for social housing.
This is what Alex Dimer of NEF says:
"policy should be geared towards upgrading existing private rented homes to ensure they are energy efficient, and acquiring and repurposing them as homes for social rent."
Any landlord who thinks they will be ok with a Labour government needs a shake.. if you think conservative has been bad there is much much worse to come .. ease out now if you can
Well, why not? Stealing our houses is only the next logical step in the govt housing circus.
A Bhalla's comments above (x2 for good measure) sound suspiciously like a party political broadcast for Britain First. This is really not the place for that.
It seems like far-right Britain First have found an interesting tactic - inserting their messaging into various online forums. There is no place for fascism in a civilised country. We see you...
Maybe. However unpalatable the above may be, a bit of far right doesn't do so much harm as at least it give more balance from all the hard left politics we are currently experiencing.
The worry for the next election ( aside from the Conservatives being almost as bad as labour, who have a slight edge - that has been narrowing ! ) is that 1 st past the post, means that either Red or Blue will get into Govt. The masses who will leave the Conservatives will be split, between Reform UK and Britain First.
That's my prediction anyway.
Yet another good reason to sell up and get out of the PRS.
Hopefully this is just pie in the sky thinking, but the fact that serious people in the labour party are saying it is worrying. I have sacrificed everything to build up a BTL portfolio business that I manage during the day whilst working in the evenings and weekends as a self-employed tutor and dealing with serious disability in the form of chronic fatigue syndrome. I deal with the whole gamut of people from lovely tenants to vicious narcissists. I have to ask myself if I will be looking back one day and realise that I should have just claimed benefits and social housing and spent my time and money on myself instead of providing many other people with a roof over their heads for as long as they needed in return for notionally making a living
I'm the same Peter. Since the age of 14 I have worked to pay for what I wanted in life. I went on to work 2 or 3 jobs whilst being a single parent and then spent years being self employed as an addition to my regular job. I have worked many hours during my free time to make my houses nice and comfortable for tenants. I did this so that my properties would be a pension eventually. However, illness forced me to retire at the age of 50 and now I live on rental income which is less than benefits that I'm not entitled to, due to owning assets. I see around me, people I was in school with, who have barely worked a day since, living in their cosy council houses with all mod cons and a nice regular income with no worries. I wonder who has been the idiot!
Deborah, we can hold our heads up high, that's the difference
I love this continued attack by government, my rents rise almost daily and there is no shortage of good quaility tenants. Pity about those who are homeless, the benefit claimants, the disabled and those on minimum wage who I used to house. Thanks to Osborne and his successors I am sitting pretty with my mortgage free properties.
Heaven help this once proud country which has been reduced to ruins by this government.
Agreed. But be warned the good tenants are free to turn bad later after S21 goes. People on here have had good tenants for over a decade. S21 issued and they've turned rotten.
The 'right to private ownership' is under threat. Eviction bans, rent caps, renter reform bill, must accept pets, must accept tenants on benefits ad -inf all conspire to compromise ownership control, which defines real 'ownership'. If its not yet theft, its sure moving in that direction. Its called 'creeping sequestration'.
The world has gone bonkers.
However, something that is actually feasible - my one rental property has been retained for my son, so that he has somewhere to live when he gets older. If we're in the ridiculous world where my asset can be stolen from me because I have a tenant, then that tenant will be evicted and my property will remain maintained and empty until my son is old enough to move in.
So another homeless person scrabbling for somewhere to live in an ever-decreasing supply of rental properties. Well done.
I'm voting for the Reform Party, having voted Conservative since I was 18, but we really have the worst Conservative Government of all time. Sunak is like a headless Chicken, has no presence and no popularity, why on earth was he selected?. I would rather have Boris, even with all his faults, and there were many.
They say Starmer is the Ken Barlow of Politics, can't argue with that! but wait until he is running the Country with the bitter Red Head. Then we will see all his nasty Socialist character come out.
We do have the worst of all time. I don't want the bitter Red Head in or Nandy and her silly ideas.
Robert - like you I wanted to vote for Reform but I have repeatedly asked them via Norma Saggers and also on their website for a policy statement on PRS and to date they have refused to answer. Ot does not inspire confidence that they will treat us any better
Bonkers think tank based in London…… they will never have the money for compulsory purchase. It does need overhaul but in balanced way where landlords are incentivised to invest. In return rent caps should be regionalised so investors can calculate how much to pay. Yes longer notice periods but landlords need rent guarantees in return paid for by the tenant. Common sense and rationalised plans need implementing.
They may not need money for compulsory purchase if confiscation without compensation is what they have in mind.
I would burn the properties to the ground if that happened
So would I.
And purposely cancel the insurance beforehand leaving ashes to fight over
Then we need to burn the politicians' own properties to the ground too. They are making us burn down our own assets.
Nick I wonder if the politicians will exempt themselves from the rules they impose on the PRS, unthinkable I know but it could happen.
Maluka, If Bojo gets back in and he can make money out of it then maybe.
Me too, and I would do the time for it, they might take my assets from me but they would only gain ashes
"Aye, fight and you may die. Run and you'll live, at least a while. And dying in your beds many years from now, would you be willing to trade all the days from this day to that for one chance, just one chance to come back here and tell our enemies that they may take our lives, but they'll never take our freedom!"
Genuinely cannot believe what I am reading. Won't happen but highlights what a horrendous country the UK is becoming. This failed communist ideology being peddled by these idiot think tanks. I think government handouts/interference is what has destroyed the UK with the pandemic handouts and bank bailouts leading to massive government debt. I don't think landlords bankrupted the UK, it was the hopeless government. Yet these morons writing these think tanks think more government interference is what is needed. If they've put the country in 2.5 trillion of debt with a deficit of 100 billion per year, how the hell can they be trusted over landlords who run efficient businesses? Then some pleb will turn around and say ''landlords extort money and give slums'' as if this minority of criminal property owners represent us all. We're law-abidding citizens often facing criminal rhetoric. It's time to fight back with lawyers.
I really fear a labour government with such crackpots writing reports.
We're supposed to live in a free society. Those that work hard, save, invest early, show discipline should be entitled to enjoy the fruits of their labour. Those that p'ss their money away, begrudge others, don't invest, spend a lot, can expect to own way less than the first group. That's supposed to be a free society and I don't say one is right and one is wrong. However, I don't know why some people want to make these groups have the same - nothing. No point living in a society like that.
Totally agreed. Too many plebs in government, councils, think tanks. Giving away council housing with right to buy. Turning to the PRS then them wanted to run that!
Last para is all true too. With all talk about wealth taxes and all sort of other things what is the point of staying in the UK? It's not a safe place to do business anymore. Not for landlords (and some other businesses). Amongst other negatives of the UK. And we have political turmoil coming when Labour get in.
'not a safe place to do business anymore'. Nick I could not agree more, which industry will be the next to be attacked?
Maluka,
They've done the windfall tax on energy companies. Obviously politically that's acceptable so they've done it. They know energy companies will reduce investment over the longer term and invest in countries that do not.
Transport companies are getting hammered for Net Zero reasons. A Tory flagship policy that will trump any form of common sense. Also RE: Net Zero we have the EPC problems and banning gas boilers.
They pushed through Brexit mindlessly and has caused us lots of problems.
We all face higher taxes (companies included) since the Tories have massively increased our debt.
I don't see this government doing anything good. Not like Thatcher. Too much virtue signalling going on and wokeness. Then we have worse to come with Labour.
They’ve got David celebrity mastermind Lammy on their front bench , that says it all tbh 🤦♀️
If the council are so great at running houses, why does almost every council tenant I know always ask me to buy them a house to rent from me? The government are rubbish at running things that's why.
Good council tenants approach us because they don't like living on council estates with all the low life dross housed next door to them
It's curious that this government, and indeed all tory governments since the Thatcher era, seem hell bent on privatising everything but appear to want to nationalise, or eliminate, the PRS.
Some great comments on here.
Unfortunately, all my properties are in the WUSSR (Wales) run by the Politburo in Cardiff under comrade Drakeford.
You think that you have got it bad?
Rents are rising, but so are tenants unable to pay defaulting on their obligations.
We have these new contacts here in Wales replacing AST's, which are far more onerous and anti-landlord.
We have Gove who seems to be a Lefty to me. We have Labour coming too. I think England will get worse than Wales.
We are supposed to be moving to permanent periodic tenancies all in favour of the tenant of course.
I just don't get this ''we need more council houses'' talk. As i said earlier, all the people I know on these estates always ask me to get them a private rented house so they can get out. So it's not wise to build more of these estates, or as this report says ''social housing'' -
Firstly cheap subsidised government housing is not an option for a debt-ridden country that cannot even fund its army, healthcare and other more important things without racking up tens of billions of extra debt every year.
Secondly, the council simply cannot offer the same service as a landlord. Try ringing a government service today. In recent months I've rung the tax department, the national insurance department, various council tax departments, the result is always the same - a truly pathetic service/waiting ages for someone to talk to.
By comparison, I try to be super-efficient, get stuff done asap and without fuss. No way on earth the council can provide such as a service. I'm available at all hours, 365 days a week, are they?
What we need is more entrepreneurs building houses for young people to buy. Government role is to encourage private enterprise, not kill it like this lot in power. Their inflation is recking the hopes of affordable new housing. Seriously, do we want our young people's aspirations to be ''get our own council house''. Wow. Surely we want our young people to aspire to own their own house in time? Of course, some people will never have that ambition or not be willing to be tied down like that, which is fine, others will get divorced or want to try out their relationship status before committing to buying. So that's where the private rental market comes into play.
Dani for PM.
The public sector are at home sitting on their bottoms (working from home). It's too easy not to work and get free money and housing. What is being bought up in schools is dreadful. They want it all but don't want to work (millennials).
You have good ideas but the Tories don't want any building in their constituencies.
Nick, I talk with these council workers often. Of course, they are nice people, I should not get personal, but they're often incapable. I cannot imagine them having to multi-task and do what I do. I'm sorry, it would take 4 of them, cost the tax payer too much and the service would still be awful...because there's no incentive. I can't believe we're having these discussions in 2023, I mean humanity figured this stuff post 1946 rather conclusively.
365 days a week, I can't beat that! 😁
Dani, I rent a property to a council. The incompetence is off of the scale. They don't have any sense of urgency. I wrote an email with bullet points of questions BEFORE I handed over the property. The council worker didn't bother reading it and just asked for the front door keys to take possession.
I had a potential fire issue a neighbour reported to me. I reported it but you can't see they are acting. So you chase again and again and again. Then they tell you it's 'fully managed by them' and I shouldn't be involved. They then ask the neighbour to report directly to them! I said I'm not telling a helpful neighbour that (it will come across as fobbing them off). Luckily it's H&S (Grenfell) related so the Council wet their knickers for that and actually move.
My landlord friend rented a flat in a council block. They charge a fortune to replace corridor lightbulbs. They also run their electric off of the flats and charge a fortune. They are pathetic to deal with.
That's what makes me realise the greta ( sic ) reset is a non starter
No matter how uber efficient uncle klaus is he's never going to get anywhere with the crass incompetence of the public sector holding his world domination plans back
Thank god
Everyone seems to be saying more Council housing needed maybe that’s the problem.
Wouldn’t more Private housing be better and more people pay for themselves and smaller Families, seen as that Council / Housing Benefit Tenants are usually double family size.
Working Private householders can only afford one or two isn’t that the truth, would you need statistics if you got eyes.
Shelter, the government et al only chase popularity. Championing the underdog. To be woke. The government wants to win votes and Shelter etc want more misery as Polly Neate wants a pay rise.
Michael, I fear the days of building council houses might be over for this bankrupt country with 2.5 trillion of debt and adding to that to the tune of 100 billion per year with a healthcare system where you wait 10 hours in emergency to be seen, an education system producing chavs galore/social media morons, an army of less than 100k that would struggle to defend this island and public services that are just pathetic by developed world standards.
This is what happens to a nation when you tell your youth - ''go and produce kids galore, we will build you a 100m2 council house with double-glazing, spacious kitchens, nice sized rooms, not to mention a 3 sided garden. We'll also give you free money every week to sit at home and additional money for each kid''. What a f***ing system! Even the French and Germans would laugh at that. This is not human rights and kindness, it's suicide! It's enabling, it's shameless parasiting.
I think it's fair to say, there's no money in the pot and if there was it would have to go to greater causes. Well, in a normal country, maybe not in the socialist hellhole known as the UK.
I'm afraid you're spot on Dani.
There's no money to build, no money to maintain and the welfare state is completely abused and unsustainable.
And any time someone from certain social and age classes has to do an honest day's work to achieve something - oh say, like a mortgage desposit - it's against their human rights and they suffer from stress. But obviously it's someone else's fault, like the landlords. And the generation who expects everyone else to listen to them and change their ways can't possibly be told they're wrong.
I've never felt such despair at the thought of having to vote in an election and being so uncertain of who to vote for. It's always been a choice of who you think will do the least damage rather than who actually has good ideas, but I don't even feel that's achievable this time.
Linsey, I completely agree. The political system is broken. They're all awful.
I still think it's possible to build a good life for the youth today. Many will complain, I heard the exact same thing 20 years ago when I was in my mid 20s. prices were tripling and becoming unaffordable. Even after they tripled, I was still buying. Why? because it's pretty easy. Keep your costs down, show discipline, invest your money and you can build wealth. I see young people today replicating that model but for some, they find reason to complain then spend half their money on rent in London living the social life and going travelling. Yes, it's true.
Family values don't seem the same in this country anymore. ''I have to move out at 21'' like living at home, saving to invest is so unbearable.
Exactly Lindsey - who will do the least damage. All these politicians are on social media virtue signaling away and therefore giving money away to the lazy and the feckless.
And Dani is right we produce social medial morons who do nothing but complain and expect to get housed.
My son worked hard at school and University then lived at home. He saved like mad. Didn't go out, no car, no girlfriend, no drinking. His biggest expense was the odd computer game. He was saving over £1,000 a month by the age of 27 he had saved enough to buy a 3 bed house. 3 years later he now has a girlfriend living with him and is earning good money.
And the next move will to be to. force owners of large homes that are under occupied, to take in lodgers to their homes at a fixed low price because there is still not enough accommodation. We all know the real answer, “ build more social and private homes.”
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