HOUSING CRISIS IN MANCHESTER

https://www.manchestereveningnews.co.uk/news/greater-manchester-news/homeless-children-manchester-living-dire-15510000

 

The Manchester Evening News has produced an article on the housing crisis in Manchester.

 

The article briefly looks at the terrible conditions that families are being put in as they require urgent accommodation due to being evicted from private rented accommodation.

 

These conditions are not acceptable. It has a massive impact on the family’s and their children.

A lot has been caused by the government and the local authorities have added to the problems.

The freeze on local housing allowance since April 2016 has meant the housing allowance for anybody on benefits has fell short of what they should be entitled to. The local housing allowance was set at the 30th percentile point and along with the increase in rents over the last two years has meant many tenants are having to pay the difference out of their other benefits that are meant for day to day living

The change in taxing of private landlords meaning the section 24 (https://www.gov.uk/government/publications/restricting-finance-cost-relief-for-individual-landlords/restricting-finance-cost-relief-for-individual-landlords) increases the burden of tax for many landlords has meant rent increases.

The increase in stamp duty means that any landlords buying have additional cost at the outset meaning rents are set higher.

The increase in the number of selective licencing schemes throughout Manchester mean that landlords are met by further expenses meaning a further increase in rents. The councils are doing very little for the money they have received when they already have existing powers to resolve the issues they bring licencing in for.

The government’s intentions to stop letting agents charging administration costs to tenants will mean this extra cost could be passed on to tenants with an increase in rent.

The governments intention to limit deposits will also effect the supply of property’s for people with pets or on benefits as there will be many landlords insisting on home owning guarantors meaning that again this puts many benefit tenants out of reach of private rented accommodation

The government’s roll out of universal credit means many benefit tenants are put in arrears with the rent causing many landlords to evict the tenants usually on a section 21. The tenants can not find alternative accommodation, they lose their deposit because of the arrears and then leave the property in a poor state of repair a lot of the time because they are unable to take their items with them or afford storage.

The government’s insistence on paying tenants that are vulnerable the housing element of the rent and the tenants failure to pass it to the landlord means they spend it on other things and fall into arrears.  The landlord then has court fees, arrears and the updating of the property to there long list of increased cost and again this effects the rent on an upward cycle and will also mean that there earnings are lower meaning the tax payable is less..

 

The social impact along  with the additional burden of cost is unacceptable and, whilst we accept that some legislation maybe required, the government and the councils are stabbing themselves in the foot. There are many landlords who are deciding to self-manage to bring down their costs but with little training errors are being made and costs are being cut adding to the issues. Landlords should have to follow the same rules that apply to letting agents regardless if they have one or ninety houses. There should be a serious consultation with the government and leading representatives of private landlords to decide on a scheme moving forward that is acceptable to all. Not a consultation were the councils and governments steam roll in with little thought after already making up there own minds on how to deal with the issues with proper consultation listening to those in the industry.

 

 

 

 

Regards,
Mike Brown

364 Moston Lane
Moston
Manchester
M40 9JS

Tel: 0161 681 3724
Fax: 0161 681 3725
Email: Mike@Brentwoodinvestments.co.uk

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