Hackney Council in London has launched its own letting agency in a bid to lower the cost of private sector housing.
The Evening Standard reports that Hackney’s not-for-profit agency is inviting landlords to hand responsibility of their properties to the council, which will then rent them out. In return the council will guarantee rent even if the property is empty.
Initially the scheme will target tenants who don’t qualify for housing benefit but struggle to pay private sector rents.
The council says the scheme will only take properties from landlords approved by the London Landlord Accreditation Scheme. It says the initiative aims to improve the quality of housing, encourage longer-term lets of at least a year and stabilise the rental market while encouraging landlords to improve the quality of their homes.
Unlike high street letting agents, the scheme will not charge agency fees to tenants.
Private rents in Hackney range from £195 to £275 a week for a one-bedroom home and £500-£700 for four-five bedrooms in postcodes E5, E8 and E9. Rents in N1 and N16 are considerably higher.
The scheme was made possible by the Localism Act, and the council has started searching for landlords to become part of their property portfolio.
A pilot scheme is due to launch in the New Year and to be rolled out in full in the summer.
Councillor Karen Alcock, Hackney Council cabinet member for property and housing policy, told the Evening Standard: “Hackney is a place where some rents are going up considerably and what the council is trying to do is to find different levels of affordability for people.
“Rather than going to agencies and the property going to the highest bidder, we’re working on longer tenancies, we’re trying to create a more stable rental market for those who can’t afford to rent but earn too much to get a council house.
“We’re trying to help people stay in the borough in properties of a good standard.”
.png)
Comments