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Activist group Generation Rent has described the latest homelessness data from the government as showing “a whole new level of horror.”
It claims that ,ore people were made homeless in England than bought their first home in the 12 months to 30 September 2023, the data just released.
The group says this is the first time that this has happened since records began and reveals "a shift to a whole new level of horror" in the housing system.
Some 126,100 households bought a home in the 12 months to 30 September 2023 according to government Stamp Duty Land Tax statistics. This was down from 264,400 in the 12 months to 30 September 2022.
In the same period 164,630 households were made homeless, being owed a homelessness relief duty from their council, according to statutory homelessness statistics published this week. This is up from 148,110 in the 12 months to 30 September 2022.
Ben Twomey - chief executive of Generation Rent - says: "The housing system has been in crisis for many years, but these latest figures reveal a shift to a whole new level of horror. Instead of helping people get on in life, the housing system is now hauling us backwards. The government must face down vested interests who are blocking progress and act more decisively to protect tenants from unfair evictions while building the homes we need to lead the lives we want."
And Matt Downie - chief executive of homelessness charity Crisis - adds: “The scale of rough sleeping is now a source of national shame. It is a sign of extreme inequality and must prompt a rethink at the highest levels of government. It cannot be overstated how dehumanising sleeping on the streets is. Through our frontline services we hear directly from people who have been spat at, urinated on or attacked simply because they do not have the security of a safe home. Things have got to change.
“To bring these numbers down, we urgently need the Westminster government to put long-term funding into the proven solutions we know help people to leave the streets behind, such as Housing First. But crucially, we also need to see a complete change in approach and a commitment to build the levels of social housing we need every year. By taking these steps we can start to bring these numbers down and, most importantly, ensure that people get the security of a stable home.”
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Lots of different issues there.
Rough sleeping and homelessness aren't the same thing in most cases. The majority of homeless people aren't rough sleepers. They're sofa surfing or in temporary accommodation. Some rough sleepers find it impossible to comply with any rules they would have to follow to access accomodation.
The drop in house purchases is almost entirely due to increased interest rates and mortgage stress testing. With houses prices dropping there's no rush to buy. Down valuations are also destroying some transactions.
The rise in homelessness can 100% be attributed to government acts of hostility towards landlords. Section 24 has forced many landlords to sell. The RRB is terrifying some and making them sell. Many bailed when they realised getting to EPC C simply wasn't economically viable. Charging 3% extra SDLT was specifically designed to stop landlords buying houses. What did politicians think was going to happen when they were congratulating themselves on coming up with ever more harmful policies?
Planning departments don't help. All the extra fees developers have to pay makes it financially unviable to build bottom end housing. The insistence on putting more emphasis on exterior appearance than internal functionality is ridiculous.
Great points well argued. Let’s hope politicians will finally start listening to ‘the providers of homes’ rather than toxic anti housing political groups masquerading as ‘charities’.
I agree, although homelessness is also caused by insufficient social housing. Basildon Council, for example, have recently conducted a survey to gauge support of measures that would encourage people to continue living with existing family members, rather than classing themselves as 'homeless'. I've seen this in the news for other councils as well (can't remember which). So, essentially, because there's a long waiting list for social housing, the person declares themself homeless to try and be moved into a hotel or bump themselves up the ladder. Obviously there will be genuine cases, but there's enough of an issue for councils to consider monetary incentives to keep them in their current home rather than trying to play the system.
I personally don't think social housing is sustainable, but it's definitely a contributing factor alongside fed up landlords selling up.
Absolutely agree Jo. Generation Rant are a “whole new level of horror. They are now seeing the results of continuously lobbying government and scaring responsible landlords to exit the market.
Well said.
Jo. Good morning all that is true some litany but there’s more although people might find it difficult to believe that there could be possible.
The HMO Mandatory Licensing Scheme repeating every 5 years and more onerous stringent rules added each time + App’ fee’s risen from £598.00 when it started to now £1650.00 in many cases
The ADDITIONAL Licensing Scheme for 4 or more ? £1150, ish.
The SELECTIVE Licensing Scheme (in some cases Borough Wide) for 2 households.
The Biggest one of all that you didn’t specifically mention but eluded to it a bit like the crumbling Schools Concrete they forgot the cement, that one has to be clearly spelled out. The very Foundation of all Private Letting the Removal of Section 21 before which there wasn’t any Mr Beadle are you listening you said you long accepted this had to go & you call yourself the CEO of NRLA Association. The How to Rent Booklet by Shelter / Citizens Advice that can invalidate your Tenancy Agreement’s if not given to Tenants first. Changed 14 times since introduced when they think of something bad to add but if you didn’t serve October 2023 version your Court Case will Collapse and can’t use S.21 either what utter nonsense.
Just add this lot to Jo’s list but there are more without getting into nitty gritty.
The biggest one has to be highlighted Removal of Section 21, regardless of interest rates traditionally I always had to pay 8%. Can Landlord today present this lot to Parliament’s 3rd Reading of the Bill, obviously they don’t know any of this and it should be taken it into account. The Bill should be stalled for now and when they wake from dreamland Scrap it or there might be no Landlord tomorrow.
Where I have a flat, there is an additional licensing scheme if there are just three occupants who are not from one family!
On a slightly different issue, I have a High Commission wanting to rent one of my flats. Is that a good or bad idea, Michael? I think I recall you did that once during the Rent Act days, but I can't remember what you said about it.
I have been listening to Thomas Sowell and Milton Friedman from talks from the 1970’s and they both discuss the liberals obsession with perfect solutions which seems to be the driving force behind most government intervention into free enterprise markets. If they continue to over legislate the rental market then undoubtedly it will become much better than it ever was from a safety perspective and quality ( my assumptions) however the trade off is that it will reduce in size and increase in price so there will likely be people who can’t afford or won’t appreciate the value. The reality is that it can’t be both and there needs to be a happy medium. Introducing licensing, removing wear and tear allowance, refusing to recognise the sector as a business therefore attracting entrepreneurs relief, removing tax relief on interest payments, confusing green policies, overzealous council employees, doubling council tax, removal of property rights etc etc. Ultimately the do gooders who wanted to protect the tenants ended up putting them on the streets. You will reap what you sow.
Great post Michael. Spot on.
I am becoming less and less interested in the whole problem, the Gen Rent mob in collusion with the government HAVE caused this 🤷♂️ So they can sort it. I’m out 💰💵💰💵🏝🏝
Surely it's just called turnover? Unless the landlord is selling then those vacant properties are rented to different tenants. Hopefully tenants who pay the rent, don't trash the place, and are pleasant to deal with. So no overall increase in homelessness, just a fair process of renting to those who deserve a nice place to live?
You're right if it's a standard PRS tenant being replaced with another standard PRS tenant.
However, some landlords are selling. If it's a small property being bought by someone to be their primary residence that doesn't really matter as the same number of occupants have a roof over their head.
However, if it's an HMO being sold to a family that's more of a problem. Potentially multiple people suddenly homeless.
If it's because the landlord is keeping the property but switching from traditional BTL to holiday lets that's no longer a home for anyone.
With increased immigration and a tax and benefit system that actively incentivises couples to split up we need far more houses anyway. But there also needs to be more thought about how to best utilise the existing housing stock. How many people would downsize if there were suitable properties to downsize into? How many of us would sell traditional FTB and second stepper properties if we weren't so heavily penalised by CGT?
68% of properties are under occupied, mainly by owner occupiers.
By encouraging home ownership and penalising landlords purchasing with extra stamp duty fines of 3 to 6%, the homeless problem is just made worse.
Most rented properties are not under occupied and the very sensible "bedroom tax" has helped to ensure that they are better utilised with the removal of the spare room subsidy, wrongly called the bedroom tax.
Why are lefties in favour of subsidising under occupancy when they claim to be worried about homelessness?
i would like to ask Ben a question if he's reading these comments, ''Unfair evictions'' would you consider the eviction of a non paying tenant to be unfair? let's be honest here most evictions are due to non payment of rent, it matters little if a section 21 or sec 8 route was used
The Bungling Boy Beadle will not read anything that is critical of him. He lives in a world of his own where he leads his people to the Promised Land. The only problem is that landlords are not his people.
A wise man once said "the definition of stupidity is doing the same thing over and over again and expecting a different result". Generation Rant (sorry Rent) Shelter etc, might learn something from this wise man.
GR and Shelter keep criticising LL's who are the very supplier of the property that tenants need to live in, forcing increased taxes, increased regulation and increased costs on LL's. Then they are surprised that the LL's are increasing rents to cover increased costs, or exiting the market, or turning to short term lets as a better return on investment and frankly less problematic.
Rather then continuing to do the same thing and expecting a different result, maybe GR, Shelter, the goverment and the like need to ask themselves the following:
1. When are they going to realise that they need to be on the same side as LL's who are the suppliers of property to tenants?
2. When are they going to get the message that if they were to support LL's this might make LL's more inclined to return to investing in the market, increase supply, help bring rents down and help solve the housing crisis?
3. When are they doing to realise that the answer is not more government regulation / legislation and taxation but less?
4. When are they going to realise that the burden of increased taxes and regulations on LL's ultimately has to be paid for by the tenants as the end users increasing rents, just like in any other business?
5. When are they going to wake up to the big picture that LL's are not the enemy but rather they need to be key allies without which the problem will NEVER be solved?
Albert Einstein was indeed a very wise man 👍🏻 ⚛️
If this crowd was really bothered about homelessness then they should campaign for landlords rights and the re introduction of S24 and leave S21 alone. That way landlords would be incentivised to keep property and rent it out.
There you go Ben, solved all your issues....
These activists wanted this; they stamped their little feet and cried to mommy (the government) who went and punished the PRS who everyone have depended on since government abdicated its responsibility to Social Housing and..VOILA .. a 💩storm of their making.
Well tough. Actions have consequences and landlords selling up in droves & all that implies is just that. Bravo 👏 👏 👏
They don't want ANY LLs. They believe the Govt should provide housing at subsidised rates. Classic socialists with no plan as to how to actually achieve their aims!
It suits them to rant against landlords as it increases donations to their ( personal ) charity.
They are perfectly aware of what they are doing and the consequences of their actions.
Working with landlords wouls promote an aura of peace nd unity and this would not suit their aims or their finances.
But don't most charities work that way, lining their own pockets first
M&S have won their appeal against Gove so they can demolish their Oxford St branch and rebuild. After support from the planning authorities and the mayor etc. But he said it wasn't environmentally friendly so no. They won on 5/6 counts too. The head of M&S said:
He argued that Mr Gove had created confusion for developers over what they needed to do to get the green light for projects.
“The Government is elected to govern and show leadership, not act like a pressure group, particularly on climate. It is one haphazard decision after the next with no clarity or clear direction and Gove’s decision only compounds this further.”
I thought the above statement applies to the PRS market too, and him pandering to Shelter etc!
I've Tweeted the above to the Tories and Gove too :)
Yes Ellie, busy today didn’t get a chance to look at things. I had Libyan Diplomatics it was ok for a while Theo Yvonne Fletcher got shot and it went pair shaped.
I Also had Company Lets which was fine at the time because of no Section. Also had some Private Educational institutions so their Company covered me,
First ever batch I believe training them to use Computers, when trained many moving on to America.
Anyway there was no private letting without Section 21.
I think you should be ok with your proposal can’t be worse than RRB.
Thanks very much for the information Michael. I feel we are back to the 1970s now when it comes to choosing tenants - but I think it is harder now, than then.
My feeling about letting to a diplomat is that the tenancy agreement needs to be in the name of the High Commission/Embassy not the diplomat, but who draws up the contract?
Company lets would still be OK now, but difficult to get.
Some universities used to offer a head lease in their names, but now have apparently all signed up to some agreement to say that they won't do that anymore.
I build my first house in Ealing 72/73 over 50 years ago now still have it and this house has housed several hundreds of Tenants over the years. It’s a HMO Licensed since 2006 against my Will as I don’t let rooms and shouldn’t need a license for single let property what’s different about this to being a Family. landlord since ‘78, I doubt if Ben Beadle was even born now calling all the Shots. 10 years before the 1988 Act and the introduction of Section 21.
So Prior to the introduction of S.21 there was no Private letting but Sitting Tenants if landlord was foolish enough to let them in, they immediately became Sitting Tenants.
Roll on 2024 we are back there again Removal of Section 21 and introduction of Sitting Tenants how difficult is that to understand. Its that simple but Ben thinks he knows better, if we were that dopey we’d never have managed to buy a Property.
Its hasn’t been advertised for 25 years because of reasonable rent and no Deposit anything they want they get any repairs get done.
It’s very simple before Section 21 they were automatically Sitting Tenants it didn’t work and the Market Collapsed, no owner fool enough for that.
Now scrap Section 21 and they will be automatically Sitting Tenants again and collapsing the Market again.
The point not to be missed landlords saying they didn’t use Section 21 very much, of Course not because it was there, take it away landlords loose all control and no remedy as a last resort which is what it was, not used frivolous initially. Tenants attitude changes immediately as is happening now and run riot, rent arrears will be a by product.
There you go give that a third reading.
Totally agree. To many liberal people on here saying I don’t need S21. I’ve never used it or once in 20 years etc. Bla bla bla.
It’s there if you need it. It’s a good deterrent. I am in agreement with you that once gone, and the ombudsman to keep claiming compensation tenants will run riot. Landlords lives will be a misery. Being a landlord
Isn’t even an option going forward.
Nick
I have used it two or three times in over twenty years, usually when things were not quite right as opposed to rent arrears or ASB. 😉
As you say, it was there if I needed it, the same way I always have rent and legal insurance. Never used it, but it is there just in case as my safety net. 👍
Annoyed. Be careful with the the rent and legal insurance. They have a high bar for tenant referencing. I used to pay for it, but my mould growers got worse on payments so even the referencing co. that did the referencing wouldn't touch them
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