Posts with tag: housing crisis

Slums in East London Borough Rental Properties

Published On: October 23, 2015 at 11:25 am

Tags: housing crisis,London property market,rogue landlords

It seems that every week there are new (and worse) photographs of rental properties, revealing the outrageous state of the housing crisis.

Now, a series of raids has uncovered 105 people living in just seven family homes.

One of the properties had ten people living in three bedrooms, with the landlord earning £4,000 per month.

Police and council officers in Barking and Dagenham, east London, also found 15 adults, a baby and a bullmastiff dog in a similar house.

One of the Barking and Dagenham properties

The leader of Barking and Dagenham Council, Councillor Darren Rodwell, says that buy-to-let landlords are “putting profit before humanity”.

He continues: “It’s a horrible blight on London in the 21^st century and it seems we are going back to Dickensian times.

“These are rogue landlords preying on people’s vulnerability – quite frankly, they are just one step up from human traffickers.”¹

The homes, all raided in the past month, had an average of 15 people living in each of them.

About a third of the housing stock in the London Borough of Barking and Dagenham are buy-to-let properties, another third are council or housing association properties and the remaining third are privately owned.

The raids were ordered after photographs were published of a rodent-infested converted office in nearby Newham, where tenants were paying £300 per month, despite not having a fitted kitchen.

A rodent-infested flat in Newham

The person that took the photographs comments: “It’s a slum. I’d rather live in Battersea dogs’ home.”¹

¹Blewett, S. (2015) ’15 adults, a baby and a mastiff dog… in one house’, Metro, 22 October, p.23

The Rise of the 50+ Renter

Published On: October 18, 2015 at 11:35 am

Author: Em Morley

Categories: Property News

Tags: Generation Rent,housing crisis,older flatsharers

We’re all aware of the housing crisis, that it is affecting Londoners the most, and that generation rent is still struggling to get onto the property ladder. But how many are aware that those over 50-years-old are also suffering?

A quarter of those aged between 50-64 live in rental accommodation, according to the latest Office for National Statistics (ONS) report on homeownership and renting in England and Wales.

The Rise of the 50+ Renter

Furthermore, flatsharing website SpareRoom.co.uk has found that in the last five years, the amount of 55-64-year-olds living in flatshares has increased by 343%. In the over 65s category, there has been a surge of 600%.

The site revealed that around one in ten flatsharers using the service are over 45, taking the average user age to almost 29-years-old.

Director of SpareRoom, Matt Hutchinson, says this trend is becoming increasingly common: “Whether we like it or not, we’re being forced to rethink our aspirations of homeownership as Britain moves towards becoming a nation of renters.

“Property prices are already out of reach for many first time buyers and increasingly, we’re seeing older renters opt for house and flatshares over renting solo in one-bed flats.”¹

And things don’t appear to be getting any better. Around 45% of people who are currently renting fear that they will never be able to afford their own home, according to data from the Post Office. One in four revealed that they don’t think they will be able to save for a deposit on their current wage, while a further 17% believe they won’t be able to meet monthly mortgage repayments.

As a consequence, the average first time buyer age is rising.

Head of Mortgages at Post Office Money, John Willcock says that the market is moving further out of reach for hopeful first time buyers: “The average age at which non-homeowners expect to get a foot on the property ladder has increased to 36 over the past year, which is a worrying trend.

“It is clear that there is still a long way to go to inspire confidence in the first time buyers’ market, with nine million feeling they won’t ever be able to buy their own property.”

As private tenants spend around 50% of their monthly income on rent, Willcock adds that saving a deposit is the “biggest hurdle”¹ for prospective buyers.

Housing crisis commentators believe that student loans are a growing problem, stating that it is not fair or feasible to expect graduates to save for a home while paying off their debt.

And despite schemes that support homeownership, such as Help to Buy, most have a maximum age limit, meaning many affected by the housing crisis are still stuck in flatshares.

¹http://www.telegraph.co.uk/goodlife/11896033/Living-in-a-flatshare-in-your-50s.html

New property listings surge in September

Published On: October 8, 2015 at 12:01 pm

Author: Em Morley

Categories: Property News

Tags: housing crisis,property listings,property market

The latest research from by HouseSimple.com has revealed that September was a good month for new property listings.

According to data from the report, listings increased by 9.1% between August and September and by 27.1% in London.

Return to form

Following a summer lull, in which housing supply fell to critically short supply levels, in excess of 60% of British towns and cities saw a rise in property listings in the last month.

In particular, the Scottish market saw a rise in new property listings during September, with supply up by 171.1% in Dundee, 48.8% in Aberdeen, 28.3% in Edinburgh and 24.7% in Perth.[1]

Sunderland saw the most substantial rise in property listings in England, which rose by 46.7% in the region. Cambridge also saw a significant increase of 35.5%.[1]

Capital gains

London saw almost 25,000 new listings in September, with the largest increase seen in the borough of Kensington and Chelsea, with a rise of 122.2%. Camden recorded an increase in listings of 95.7%.[1]

Just two of the thirty-two London boroughs-Croydon and Lambeth- saw a dip of property supply during August and September.

New property listings surge in September

Alex Gosling, CEO of online estate agents HouseSimple.com stated, ‘The current housing shortage in the UK has been a major contributory factor in rising property prices. We are in the grip of a severe property shortage and if September hadn’t seen a spike in new property listings we really could have been looking at a full-blown supply crisis.’[1]

‘Fortunately it seems sellers have woken from their summer slumber and September figures are far more encouraging,’ Gosling continued. ‘Almost 60% of UK towns and cities have seen stock levels rise between August and September. But it’s too early to breath a huge sigh of relief that a property crisis has been averted. Stock reservoirs still remain dangerously low.’[1]

Gosling believes that, ‘September needs to provide the catalyst,’ and that, ‘we need to kick on from here and gather some momentum for the rest of the year. Concluding, he sad,’ with demand so high, it’s the perfect time to sell. The housing market still has a long road to travel to rebalance supply and demand, but these latest listings figures show that we are finally moving in the right direction.’[1]

[1] http://www.propertyreporter.co.uk/property/september-sees-91-rise-in-new-property-listings.html

The Buy-to-Let Sector in Numbers

Published On: October 6, 2015 at 8:53 am

Author: Em Morley

Categories: Landlord News

Tags: buy to let market,buy-to-let sector,getting on the property ladder,housing crisis,housing market

The Buy-to-Let Sector in Numbers

The Bank of England (BoE) has warned that the buy-to-let sector could have a detrimental effect on the country’s financial stability.

Rising property prices, which are making it difficult for many to get onto the ladder, could eventually lead to a housing market crash.

Former business minister Sir Vince Cable has also voiced his concerns. Read more: /ex-minister-warns-of-another-housing-market-crash/

So how big a problem is buy-to-let in Britain?

Private landlords now own one in five homes and half of the five million new properties built between 1986-2012 are under their ownership.

Of all landlords, 10% get half or more of their total income from their property investments.

The estimated value of buy-to-let properties in the UK is a huge £1 trillion.

Ex-Minister Warns of Another Housing Market Crash

Published On: October 5, 2015 at 3:56 pm

Author: Em Morley

Categories: Landlord News

Tags: affordable housing crisis,buy to let boom,housing crisis,housing market crash

Sir Vince Cable, a former business minister, warns that another housing market crash could be just around the corner.

He believes there are “worrying signs” that Britain is “reliving the bubble of the pre-crash”.

He is one of two ex-ministers to give their opinions of the private rental sector within days of one another, with their concerns fuelled by the booming buy-to-let market.

Ex-Minister Warns of Another Housing Market Crash

In July, one in five mortgages were granted to buy-to-let investors and the Bank of England (BoE) reported in the record of the last Financial Policy Committee meeting that the stock of buy-to-let lending has grown by 40% since 2008, compared with a 2% increase for owner-occupation.

Both Liberal Democrat Cable and Conservative Damian Green are calling for more tax measures to be imposed on landlords, going further than the tough new system announced in the summer Budget.

Cable states that housing is unaffordable for most people in the country, with price rises driven by buy-to-let activity and a shortage of supply.

He believes extra tax measures are needed to clamp down on the buy-to-let sector.

Speaking at the Association of Short Term Lenders conference, Cable said that the 2008 financial crisis had been an “economic heart attack” that we are still suffering from.

Green also expressed fears over the buy-to-let market.

He said there is “huge discontent” over housing.

He continued: “We need to reclaim the mantle of the party of homeownership and to do that we not only have to build more houses, but ensure that they are available for people to buy.

“Too many new houses and flats are immediately snapped up by buy-to-let landlords, and never become available for first time buyers.

“I am delighted that we have taken the first steps towards removing the tax advantages for buy-to-let, but I suspect there is much further to go and therefore more political courage required.”¹

Director of central London agent, W.A. Ellis, Richard Barber, says the current plans to cut landlords’ tax breaks are unlikely to work.

He believes: “In spite of the Government’s plans to cut tax breaks for landlords to level the playing field between buy-to-let borrowers and first time buyers, the fundamentals for buy-to-let are still strong.

“Whilst yields may be affected by the reduction in mortgage relief, the shortage of new housing stock, people renting for longer and new pension freedoms will continue to drive this sector.”

He continues: “Whilst the Government may have successfully cooled the upper end of the market, their efforts to increase housing stock seem to revolve more around rhetoric than delivery.

“The increase in buy-to-let lending over the last three months is indicative of the public’s long-term faith in property as an investment.”¹

¹http://www.propertyindustryeye.com/next-housing-market-crash-is-around-the-corner-warns-vince-cable/

Housing Crisis is Very Real, Insists Homelessness Charity

Published On: October 2, 2015 at 2:43 pm

Author: Em Morley

Categories: Landlord News

Tags: causes of homelessness,housing crisis,housing crisis solutions,private rental sector housing

Earlier this week, Simon Jenkins wrote on The Guardian website that the housing crisis is not real and “there is no solution” to it.

Housing Crisis is Very Real, Insists Homelessness Charity

He stated: “As in all political crises, there are tribal myths and economic realities. When the myths win, policy degenerates into chaos and counter-productivity.”

He then simply stated that one of the myths is, “That there is a housing ‘crisis’. There is none.”

Now, the Chief Executive of homelessness charity Crisis, Jon Sparkes, has responded to the piece.

He begins: “Simon Jenkins is mistaken on a number of points. The housing crisis is very real: we see the worst effects of it everyday, and not just in London.

“Since 2010, all forms of homelessness in England have risen. Rough sleeping has increased by 55%, while thousands are forced to live in precarious and dangerous conditions just to keep a roof over their heads. If this isn’t a crisis, what is?”

He then addresses the private rental sector: “Private renting in England is failing to provide people with homes that are decent, safe, secure and affordable. Too many people are living in appalling conditions – almost a third of privately rented homes fail to meet the Government’s decent homes standard.

“Compared to other parts of western Europe, tenants in England have very little security. Many can be evicted from their homes with little notice and with no duty on the landlord to prove they are at fault.”

He insists: “With rising rents and severe cuts to housing benefit, the loss of a private rented home is now the leading cause of homelessness. This is unacceptable. Our politicians can and must do something about it.

“We need decisive action to make the private rented sector more accessible and affordable, along with radical solutions to tackle the severe shortage of affordable homes. At the same time, we must have a real safety net for anyone finding themselves in difficulty.”¹

¹http://www.theguardian.com/society/2015/oct/01/the-housing-crisis-is-by-no-means-a-myth