- Snap survey of district councils shows that 76 per cent of
councils have seen an increase in landlords selling up
properties.
- Shortages are particularly bad in councils areas popular with
tourists, with landlords switching their properties to more
profitable short term holiday lets.
Councils warned today of a growing crisis in the private rented
housing sector, with a sharp rise in landlords selling up or
converting their properties into Airbnb’s.
76 per cent of councils surveyed by the District Councils Network
(DCN) said that this had caused a rise in housing waiting lists,
causing more people to lose homes, and making it harder to find
permanent accommodation for those in need. 48 per cent of these
councils said they were now experiencing a significant pressure
on housing services due to this.
One council in a popular tourist destination in the south-west of
England has reported a nearly 80 per cent drop in the number of
open market, long term rental accommodation available in their
local authority area over the last three years, with many
landlords leaving the market or providing short term
accommodation for holiday makers instead.
This news comes at the same time as a report by property agent
Zoopla revealed that rents in the private rented sector have
reached a thirteen year high, with a 6 per cent increase in the
last year. Councils are reporting that this rise is forcing some
long term tenants to apply for hardship support from their local
authority, with some council areas seeing rents rise to over a
third higher than the average salary in their local area.
Councils are warning that the housing benefit many suffering
hardship receive will likely not be sufficient in the longer
term, as the Government looks set to keep Local Housing Allowance
rates, which determines the amount of benefit received, frozen
over the next year.
Landlords are leaving the market due to the impact of the
pandemic, with tenants unable to afford their rents, landlords
requiring to move into a property themselves and a rise in
‘staycations’, leading to a boom in the short term holiday let
market.
The District Councils Network, who represent nearly 200 district
councils across the country, is calling on the Government to
increase investment in council housing and give councils the
tools they need to create their own permeant housing for people
in their communities in hardship.
District councils stand ready to work with government to
proactively increase the supply and quality of homes for benefit
claimants, ensuring those in need can have a permanent roof over
their heads in their local communities in the future.
Cllr Sam Chapman-Allen, Chair of the District Councils Network
said:
“This survey reveals a perfect storm of problems creating a
crisis in the private rented sector across the country.
“Now the Government’s Eviction Ban has ended, this is a problem
that could get worse, with councils also seeing increase in the
numbers of tenants needing housing support due to increased
evictions due to rent arrears.
“During the pandemic, district councils and the government worked
together to help protect those who are most vulnerable through
the Everyone In initiative, the temporary banning of no-fault
evictions, and other measures such as furlough and the Universal
Credit uplift.
“We need to urgently tackle this issue by permanently lifting
housing benefit for tenants in private rented housing and for
increase in Government support to invest in a renaissance of
council house building to create homes, jobs and growth.”
Ends
Notes to Editors:
These findings come from a survey of 71 district councils about
local housing pressures, with responses being submitted from June
2021 through to the end of November 2021. The full findings can
be made available on request.
