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Housing: families cramped as rents increase and landlords bow out

Housing: families cramped as rents increase and landlords bow out

Another blow to the rental housing market.

Families are being squeezed into smaller accommodation due to:

  1. Rent increases
  2. Landlords selling up
  3. People struggling to save for a rent deposit

The damning new research was carried out by Hargreaves Lansdown, as the Government is considering removing no fault evictions, or Section 21 evictions.

Luke Ridge previously posted about his concerns on ending no fault evictions – and it seems he is right to be concerned.

The number of rental homes available is reducing which is pushing up demand, and rents!

Discouraging landlords – protecting tenants = fine balance

The Government have:

  • Cut tax reliefs for landlords
  • Increased stamp duty on second homes
  • Banned unfair letting fees from estate agents and landlords
  • Capped tenancy deposits to five weeks rent up front

Time to evict tenants increase from 17 weeks

Latest Ministry of Justice figures show that it is taking landlords 17.3 weeks to make a claim to the court to evict tenants using the section 21 process.

This is further bad news to add as the Government is consulting to remove them.

Nearly half of private landlords will scale back

The largest poll of landlords and letting agents, carried out by the Residential Landlords Association, reveals 46% would scale back their activity in the private rental sector if section 21 evictions are banned.

This will only exacerbate the private rental market issues already be experienced.

David Smith, Policy Director at the Residential Landlords Association warns, “Security of tenure means nothing unless the homes to rent are there in the first place.”

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