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  • Buy-to-Let

    Homelessness - you ain't seen nothing yet!



    A link to a BBC article.

    Homelessness rise 'likely to have been driven by welfare reforms'

    Sometimes you take no pleasure in saying “We told you so”, as there are families suffering and god knows how many more going to suffer.     The sad thing is, as bad as the homelessness crisis is, “You Ain’t seen nothing Yet”!

    • The number of homeless families in the UK has risen by more than 60% and is "likely to have been driven" by the government's welfare reforms, the public spending watchdog has said.
    • Homelessness of all kinds has increased "significantly" over the last six years, said the National Audit Office.
    • There has been a 60% rise in households living in temporary accommodation - which includes 120,540 children - since 2010/11, the NAO said.
    • A snapshot overnight count last autumn found there were 4,134 rough sleepers - an increase of 134% since the Conservatives came into government, it added.
    • Homelessness cost more than £1bn a year to deal with, it said.
    • Welfare reforms announced by the government in 2015 included a four-year freeze to housing benefit - which was implemented in April 2016.
    • The ending of private sector tenancies - rather than a change in personal circumstances - has become the main cause of homelessness in England, with numbers tripling since 2010/11, said the NAO.
    • Councils spent £1.1bn on homelessness in 2015/16 - with £845m going to pay for temporary accommodation, the NAO said.
    • The Local Government Association - which represents councils - said local authorities were having to house "the equivalent of an extra secondary school's worth of homeless children in temporary accommodation every month."
    • "The net cost to councils of doing this has tripled in the last three years, as they plug the gap between rising rents and frozen housing benefit."
    • Homelessness charity Shelter said it wants the government to end the freeze on housing benefit and commit to building affordable homes.

    Oh the irony.  Is this the same Homelessness charity that pays 6 figure sums to it’s bosses yet has never housed a single person.  The same charity that lobbies to have draconian tax measures imposed on landlords thus exacerbating the problem.

    If you ask me, the below is a funny way to tackle homelessness.

    • Tax home providers on turnover(s24) leading to them leaving the sector in droves and a decline in their numbers – less supply = higher rents
    • Tax home providers on turnover (s24) forcing them to put rents up to remain viable – S24 = Higher rents
    • Penal Tax of 3% to home providers on additional purchases = fewer purchases = less supply = higher rents
    • At the same time freeze benefits ensuring affordability gets worse each year

    I no longer take housing benefit tenants once any current tenants leave as it’s economically unviable thanks to S24 on top of the benefits freeze.

    Homelessness crisis, what homelessness crisis.  “You ain't seen nothing yet”

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    Your spot on Paul

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    Learn Change and Adapt ?????

    Agreed, S24 is a mad idea and reduces supply at a time when we need more homes for rent. But undoing that alone would only be a start. We need to build more houses too.

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    But it will not be use building the homes

    It will be large Landlords

    we on the other hand will be forced to leave the stage

    and all generation rent to purchase

    The writing is on the wall Rent Control will come especially in the SE of England

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    Learn Change and Adapt ?????

    What can I say?

    Housing crisis? You ain't seen nothing yet! A "perfect storm" is brewing. 

    When I spoke to controversial landlord Fergus Wilson in 2015, he predicted this:

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    Controversial he may be

     But he didn't get where he is today by being stupid!!

    Wise words from a proverbial sage.

    Many don't like what he has to say.

    But he does tell it as it is no matter how objectionable it may be for many.

    He doesn't do trolling.

    He just states the realities which many don't want to hear.

    Don't shoot the messenger just listen to the message!!


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    I think we've all been predicting this V, yet this is only the beginning.  I've been telling people for years there's a massive crisis coming and that by 2020 it will be like nothing seen before.

    Rent controls don't bother me.  But if they come in how are the big corporates going to feel.  They are investing billions for a return and rents need to be at a high level to hit that return.  My rents will always be well below what they charge.

    So once the crisis is in full flow (again, we are just at the beginning IMHO) housing benefit will have to rise steeply so all the homeless or those in temporary accommodation  can actually afford anywhere.

    The raise in stamp duty by 3% and more importantly S24 and the freeze on benefits were incompetence beyond belief.  No impact studies apart from back of fag packets about how much landlords could be fleeced for.

    By the time the crisis gets under control and housing benefit rates have soared, I predict it will have cost many many times more to sort than they ever raised.

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    Irony?

    We are just on our way back from the Landlord and Investment Show in Brighton.  Croydon Council were there - they are desperate for private landlords as "they don't have enough social housing".

    We recorded an interview and I will post it shortly.  They said they would consider any location as they have so many people to house!

    You couldn't make it up!

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    I seem to recall that various London boroughs had stands at the Landlord and Letting show when it was at the Barbican.

    Sadly, I had to evict a tenant not too long ago. My local council could only find her a private landlord 15 miles away which caused her great difficulty with work and children's school.

    Every borough has a chronic shortage of social housing.

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    Funny, Sad and Predictable. You are correct, you couldn't make it up.

    This is going to become a political nightmare for the next government.    They are going to have to find a way to incentivise the very people they have demonised and tried to destroy.

    I have a long memory so that's going to have to be some incentive.

    I went to watch Liverpool FC about a year ago and went into the City for a meal and night out.   It shocked and disgusted me how many homeless there were from when I lived here.   Literally every few yards.

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    "Yesterday is history - tomorrow is the future"

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    Full time Landlord in WestYorkshire, mentor and property education to new and inexperienced PRS investors. 25+ years of working knowledge. Accredited NLA member http://www.landlordgeoff.co.uk [color=#800080]