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  • Landlord Resources

    Report : 20 ways to solve the housing crisis



    The Royal Institute of British Architects (RIBA) has set out its key recommendations for dealing with the UK’s dire housing crisis.

    The new policy document, "Housing Matters: 20 ways to solve the housing crisis", does what it says on the tin with a number of recommendations.

    Here is a summary:

    1. Housing policy should be added to the remit of the National Infrastructure Commission and future infrastructure schemes should include details of their impact on housing supply.

    2. The Government should adopt the RIBA and House of Lords’ Select Committee recommendation for the establishment of a Chief Built Environment Adviser.

    3. The cap on Housing Revenue Account receipts should be lifted to allow councils to borrow to build social housing.

    4. Central and local government should set up public sector investment vehicles and a national housing investment bank to issue bonds and ISAs, recycle right to buy receipts and attract long-term institutional investment.

    5. Local authorities should set up Local Housing Development Funds, with initial capital for investment provided by local authority pension funds. Once such schemes are up and running, they would be able attract secondary institutional investment.

    6. Local leaders should be empowered to shape their local housing market by taking control over requirements for affordable housing, including the tenure composition for new developments (affordable rent, social rent, living rent, shared ownership, Starter Homes) based on local housing need, rather than fixed national targets.

    7. The Guiding Principles of the Estates Regeneration programme should be strengthened to ensure that engagement with local communities is at the heart of the process and the rights of existing residents to remain after regeneration is complete– including those who exercised the right to buy – is protected.

    8. Sufficient resources must be made available to identify land and for the management and promotion of the custom build register.

    9. The Government should ensure Design Review Panels are an integral part of the planning process – particularly for larger and more complex schemes.

    10. Local and neighbourhood plans should include design review to help drive high quality design in new housing developments.

    11. Key factors that affect quality of life and affordability of housing like space, access and environmental standards should be subject to regular review to ensure that the highest possible standards are adopted.

    12. The value of social return should be given equal consideration to economic return and the long-term impact of a proposal on the public sector should be taken into account to ensure that inappropriate development is avoided.

    13. Local authorities should consider partnering arrangements where land and ownership is retained by the authority, possibly in the form of Community Land Trusts, to ensure long-term best value for those assets.

    14. The removal of stamp duty when moving to a smaller home should be piloted in the Autumn Statement.

    15. A distinct, clear planning use class should be introduced for housing for older people that is designed to Housing our Ageing Population: Panel for Innovation (HAPPI) principles.

    16. Local authorities should be required to address the principles of inclusive design in internal and external environments and the needs of older people in plan-making and land allocation.

    17. Research into concerns around viability, build quality and overheating should be commissioned to help guide future standards.

    18. The metrics currently used to calculate energy efficiency and CO2 reduction should be reviewed; learning from other European countries such as Germany and Denmark.

    19. A VAT rebate scheme should be made available for the renovation and improvement of homes with poor energy efficiency.

    20. The Neighbourhood Planning and Infrastructure Bill should be amended to ensure that viability assessments used in Section 106/CIL discussions are public documents – with no commercial confidentiality restrictions.

    DOWNLOAD THE FULL REPORT

    What perplexed me the most is that there is no mention of Section 24!

    Yes, stamp duty pops ups again, but no mention of the damage Section 24 will do to rental stock!

    Oftentimes, landlords buy run down properties and refurbish them, bringing them up to standard. This is good for the area and good for supply.  Private landlords house 20% of the country.  If they exit, where are people going to live?! 

    There is already a massive shortage of social housing and record numbers of people living in emergency accommodation while the council's wait to re-house them.

    The sector needs to ENCOURAGE investment, not deter it with onerous tax laws that deter people from investing in upgrading new housing or providing accommodation.

    Why is Section 24 not on the radar of these institutions?!

    Related content:

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

    Oxford - blueprint of a housing crisis 

    "Cut immigration to solve housing crisis" says MigrationWatch boss 

    George Osborne admits "housing crisis will still be with us in 10 years time" 

    Lender apathy will be the death of us 

    Landlord apathy will be the death of us

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    I suggest there is an Establishment cover up

    Why else would they fail to mention the thing that is exercising most LL, namely S24

    SDLT won't concern me as I'm not buying due to S24 and I wouldn't buy in a corporate entity.

    So S24 will cause me to increase rents or sell up if the rent can't be increased to pay for a normal rent increase plus the additional S24 tax burden.

    Fortunately for me I won't be losing Child Tax Credits which I would have done as I have no children,............. Phew!!!

    S24 is the most important issue for LL who are mortgaged and trade in their own names.

    If I was buying I would strike a price and then I would require a  3% reduction.

    If the vendor refused I would walk away

    No way would I pay the extra SDLT, the vendor will.

    Might mean I wouldn't be successful in purchasing.

    So be it!!


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    Vanessa, it's only since I became serious about purchasing BTL properties and joined PT that I've realised the full extent to which private landlords are demonised.  I find it both astounding and appalling.

    I commented on an article in the Guardian regarding the difficulty for young people of getting on the housing ladder.  Oh boy - the abuse I copped!  I was accused of stealing working people's hard earned money, ripping off all and sundry, letting out doss houses, putting tenant's safety at risk with dodgy electrics.  I was also called 'a parasite' and 'a member of the parasitic landlord class'.  How they got all that from my two line, very mild comment supporting an increase in housing support for disadvantaged groups is beyond me!

    So another thing I've added to my 'Let's Begin Landlording' tool box - you need a very thick skin and shoulders two pick-handles across!

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    Beth,

    You are now aware that for many in the UK you are the spawn of the devil or as one Tory Councillor once memorably described sole trader LL

    Snivelling parasites!!!

    It is best not to advertise you are a LL

    The anti LL brigade fails to understand that without the PRS most of them would be homeless.

    There is much antipathy against any LL in the UK

    Especially from the rabid left wing

    I have commented on the Guardian and I describe the Lefty loonies as they are

    They don't like it at all.

    If of sensitive disposition I would keep your head down.

    You will NEVER achieve approval for housing people.

    You are up against an extreme socialist ideology which sees all private provision of anything as wrong.

    The Guardian represents such stupid opinion.

    I wouldn't bother commenting

    You have better things to do with your time

    You will never overturn opinion that you are a scum LL and should burn in hell for your appropriation of property that someone else could have

    What with they never say, perhaps they have access to magic money trees!!

    In their world there would be no such thing as private property

    The state would provide and everyone would be a state tenant!!

    There are simply no comments that will derail these lefties of their ridiculous views.

    Don't bother with them

    Keep your head down and do your LL job as best as you can which I know you strive to do.

    Ignore the Lefty idiots.

    They simply aren't worth bothering with

    I hold them in contempt as should you!

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    I've been called worse things in my life than a parasite, so personal insults don't bother me.  The way that landlords are perceived as a group does though.  I don't like injustice, and the myth that all landlords are dodgy, greedy and exploitative is such a crock.

    It's the same old story - the few bad apples.  The same 'principle' (oxymoron, that!) applies to many cultural, social or economic groups, a tiny percentage do bad things and the whole group is demonised.   

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    On the subject of being hated, my wife had a laugh the other day.

    We have been landlords for over 20 years, full time landlords for 13 of these.  We live in a very affluent area full of professional working people.  My wife got invited to a coffee morning with some of the Mums from our youngest daughter's reception class so she went - to a nice big house.

    Suddenly in the midst of chitter chatter about school fairs etc the hosting mum announced that she had heard that some people made their money off the back of hard working people just by letting out houses.  She thought that was horrible and made life really hard for everyone.  Some of the others agreed. My wife didn't know what to do or say.  She thought the woman was joking at first, or having a dig at her, but it soon became apparent that this approx 40 year old "professional" woman had only just heard of buy to let and was happily offering her feelings of disgust.  At this point my wife remembered that she never actually tells anyone what we do because we lost a few friends through jealousy when we had several houses in our 20s, so just stayed quiet.

    Landlords are hated. It's completely unfair.  Trying to keep everyone happy is really hard work and you make tiny amounts from tenants for the grief involved. S24 will reduce this further.  In my experience you make your money from long run capital growth and buying right.  You soon realise that it's better that people just think you are a drug dealer or something.

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    You are right we are hated by people who have listened to the media lies and are gulable enough to believe it all. Lots of the lies come from dodgy tenants who exagerate problems and are often getting benifits from the state. It's the poor little me syndrome and the media only report the small minority of bad landlords and tenants not the other 90% who are decent upstanding hardworking members of society.

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    I would conjecture that your landlord hating yummy mummy has used drug dealers but never a LL

    Guess which one she despises most!!!

    There is simply no logic to LL hatred and the stupid comment that this middle class twit mummy came out with just sums up that some people are idiots.

    The fact she made this disparaging comment about all LL just sums up her lack of understanding about basic economics.

    There are unfortunately millions of idiots like her holding such ridiculous views.

    But as S24 kicks in there will be fewer of us and she will find that her associates comment even more how rents are rapidly increasing for their little darlings!!

    Such idiotic attitudes that this silly woman shares are the principal reason why politicians won't stand up and fight for LL publicly against S24

    If they had to explain why they were fighting for LL their electorate simply would switch off if they attempted to explain how wrong S24 was

    There would be lots of eyes glazing over!!!

    We LL are on our own which is why it is simply PATHETIC that only about 750 LL have pledged and paid towards the JR

    There are reckoned to be about 450000 mortgaged sole trader LL.

    So why haven't there been 450000 pledges for the JR!!??

    When you have stupid people like this woman with her bonkers ideas about the profession of being a LL you can see that LL are up against it!!


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    Vanessa - it shouldn't really be a surprise that S24 does not get a mention: it does NOT lead to a reduction in number of houses available (those houses do not “disappear” or become uninhabitable because of s24). 

    The only thing it would do is reduce supply of houses available for rent, because landlords sell up.  Landlords selling up increases supply of houses for sale on the market, and so will logically work against price increases.  This is the very purpose for which s24 was introduced.

    .

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    Good in theory

    But in practice no

    Insufficient credit due to MMR

    insufficient deposits

    Increasing demand from existing  and immigrant population

    Insufficient supply

    All means property prices won't reduce

    S24 helps very few

    Most LL will be off loading properties that FTB don't want

    S24 will NOT reduce property prices.

    Most LL properties will be bought by corporate LL who will charge more in rent.

    S24 is a flawed idea a product of an idiot Geography graduate's fevered mind

    S24 was tried in Ireland

    It didn't work out well for tenants at all.

    Which is why it was eventually abolished.

    But the whole experiment cost tenants an increase of about 40% in rents!

    Didn't increase buyers or reduce prices



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    It's all supply and demand:

    "Insufficient credit due to MMR" - means less demand from buyers = should drive prices down (not up)

    insufficient deposits - means less demand from buyers = should drive prices down (not up)

    Increasing demand from existing  and immigrant population - means much more demand for housing, but the increase in demand for purchasing housing is not as big:  most immigrants (particularly form Eastern and Southern Europe, e.g. Greece, Bulgaria, etc) are unlikely to buy for some time.  Some - e.g. Germans, Austrians, Dutch - are also culturally more comfortable renting long term rather than owning. On balance, I agree this should be a factor driving prices up.

    Insufficient supply - agree, this should keep prices higher.

    All means property prices won't reduce.  No, 2 factors in favour, 2 against. It is very difficult to predict which of these will be stronger.  But in addition to these there the operation of S24 will be a very strong motivator for increasing the supply of houses for sale once it really starts biting in 2019-ish. Brexit will also reduce immigrant numbers so that will reduce demand for rented housing further, and also demand from some BTL buyers.

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