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  • Property-a-holics

    What causes homelessness in the UK?

    Section 24 is increasingly responsible for the growing homeless problem in the UK.

    This onerous and unfair tax makes it unviable for landlords to offer accommodation in the private rented sector.

    Local Government is already feeling the impact of Government policies against private sector landlords and are starting to face the consequences.

    A friend of ours told us this week that he was evicting some private tenants for non-payment of rent. Out of the blue, the local authority housing team rang him and begged him not to evict the tenants. They said that they had nowhere to house them.  They offered him an immediate payment of all the rent arrears, a goodwill payment for him to cancel the eviction, and direct payment to landlord of rent, going forwards.

    This is just a small snapshot of the housing crisis biting.

    In our interviews last year with local councils, Croydon Council had 726 people on their housing waiting list and Enfield Council had 1500!   Local authorities have very few options if they cannot discharge their housing obligations into the private rented sector and this is why private landlords play such an important role as housing providers when there is a dwindling supply of social housing.

    It is obvious that local authorities are struggling to meet their housing obligations, and they will be feeding this back to Central Government.  Their voice is going to be getting louder and louder as Section 24, landlord licensing schemes, stamp duty surcharge, Universal Credit, and other government policies on landlords start to bite.

    In this video compilation, three local authorities explain the issues they are facing on a daily basis in meeting their housing obligations.

    Whilst no one wants to see an increase in homelessness, it is Tory policies that are creating this problem.

    This thread was inspired by this discussion about the lack of awareness of what is causing homelessness - How to get rid of s.24-publicity!

    The tax payer is funding hugely expensive temporary accommodation and B & Bs.  Families are living in hotel rooms with no catering facilities.  There has been a significant increase in the number of rough sleepers. This is just the start.

    SEE ALSO  -         Number of private landlords in decline

    UP NEXT -             First concrete signs of the impact of S24

    DON'T MISS -        1 in 4 landlords to exit due to Section 24

    NOW WATCH:   


    There's a hurricane coming.   At the moment we have light winds.   By 2021 the real shit storm will have hit.


    NO good LL gives NTQ unless there is a very good reason for doing do.

    Everyone apart from LL is in denial why LL are being forced to evict.

    LL  are just responding in the only way they can.

    They respond from a business  perspective

    They do so without any malicious intent.

    The business  imperative is what motivates the private LL.

    It seems this imperative is denied by many.

    Almost as though such LL shouldn't have a business  imperative! !

    That simply wouldn't be logical as Spock; the one with ears might say!

    It seems that rather than  wasting time writing letters to and having meetings with MP social media is the way to make them pay attention.

    It seems a twitter storm is now more influential that a reasoned discussion with the PTB.

    Well if this is the new way then utilising social media as a tool to advance ones position to get the TRUTH across will have to utilised far more than currently seems to be the case.

    It seems if social media aren't discussing you then you are really just another isolated talking shop.

    By all accounts social media is increasingly how GR consume  news

    Unfortunately  this often leads to confirmation bias.

    LL need to break into the conversation  somehow to put our truthful perspective.

    We have nothing to tell apart from the truth.

    We don't need to create fake news for our propaganda purposes the truth will suffice.

    It is easy to defend the truth from those who deny it's existence because of their own misguided prejudices.

    LL should NOT shrink from stating the truth.

    As such we have a duty to ensure the debate is fully informed with the truth;  the whole truth and nothing but the truth.

    Something that I suggest is sadly missing from the debate wherever  it may happen.

    LL must change these current circumstances  if ever to stand a chance of protecting them and their tenants from the effects of these pernicious anti-PRS policies.

    Perhaps the children  of LL could be recruited to assist their parents in getting g the message of TRUTH across.

    They are perhaps better placed than some adult LL  to do so!!!!!?

    Anything that could be used to get across the TRUTH should be utilised.

    This is ultimately  an information war that the Govt cannot be allowed to win.

    LL  need an army of the good to beat the bad and ugly; wah wah, wah!!!


    Drugs are  a large cause of homelessness ......


    The historic underlying reasons for homelessness are complex

    But for now I will concern myself  with the surface here and now and in your face reasons.

    These  are clear and plain and unambiguous for my LHA tenants

    1 bed LHA rate 525    v 1 bed private rate 650

    2 bed LHA rate 656   v   2 bed private rate  800

    3 bed LHA rate 780    v  3 bed  private rate   1000

    4 bed LHA rate  998   v  4 bed  private rate 1200

    And then the laughable forthcoming UC adds insult to injury

    The councils cannot work with a broken system . Its not fair on them

    They need to and will be  screaming at government to fix it

    But we continue to wait for a major policy U turn .

    And  it will come of that I am sure


    Jonathan Clarke. http://www.buytoletmk.com

    It appears MK still has significant pressure on housing where other areas are seeing a surplus with rents falling.  I suspect the government will be looking at all the different areas and thinking - or hoping - that the fall in demand will spread and possibly given a boost by the expected drop from Brexit.

    Oxford is a bus ride from MK and it appears demand for property has dropped there



    People  are good at seeking out value so uneven spreads eventually even out over time

    Internal migration occurs slowly though but improved  transport links speed that up

    The Stagecoach X5 bus yes already does provide a good fast link  from Oxford to MK

    Also with the planned new east / west rail link now given the go ahead between Oxford MK and Cambridge that adds another transport link to allow ease of movement between the two cities

    MK population is forecasted to double in the next 30 years to grow from 250K  to 500K


    That`s a lot of people to house

    So I foresee continuing housing pressures going forward with rents and prices rising

    They wont be able to build them fast enough to keep pace I reckon

    That means the homeless situation will get a lot worse before it hopefully gets better


    Jonathan Clarke. http://www.buytoletmk.com

    I am not convinced about people seeking out value unless it’s in a neighbouring London borough with coffee bars already opening up.  Locally there is a small two bed cottage for sale for £475k, less than ten miles away the same money will buy you an almost new four bedroom detached house, both fairly priced but the detached property offers far greater value for money.

    As to MK growing from a population of 250k to 500k, I am not sure how I would react to that, we have a population of less than 80k which is large enough for me.


     ``but the detached property offers far greater value for money.``

    Value, like beauty,  is in the eye of the beholder . It is very subjective

    10 miles is massive distant in property terms  to compare like for like value 

    Sometimes half a mile can make a big difference

    On a busy main road or set well back by 800 metres .

    For the same footprint this could quite easily equate to 100K difference in value

    I have a 4 bed detached @ 300K

    3 miles away I have a 3 bed detached @ 500K with only about 60% the footprint of the 4 bed

    I think people when buying understand why the difference in value is there

    They seek out the property that represent best value for their lifestyle 

    One may choose one over the other and vice versa 

    Both may be very happy with their choice and wouldn't swop for the world


    Jonathan Clarke. http://www.buytoletmk.com

    In my view, knowing both areas, the detached house represens better value. I also think that value can be more easily measured and is not as subjective as beauty.  You appear to think that people consider the different areas and then make the decision to remain within the area they know, I think generally they don’t look into neighbouring areas which is why there can be a shortage of properties in one area and a surplus in a neighbouring area.


    Greater London's 600 sq miles averages around 15000 people per sq mile