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UK agency predicts a million tenants could lose out under rental plans
A million tenants in the UK could lose their rental properties as a result of one of the major party's policies on the private rented sector, it is claimed. Belvoir, one of the UK’s largest property management agencies, predicts that Labour’s pledge to introduce new anti-landlord rental policies could result in landlords leaving the sector. ‘I am shocked at Ed Miliband’s proposals and his decision to ignore industry experts who have issued dire warnings about the unprecedented suffering that his party’s policies are likely to cause to tenants,’ said Dorian Gonsalves, Belvoir’s director of commercial and franchising. ‘Under a Labour Government, landlords will be forced to commit to three-year tenancies and banned from raising rents above inflation. You don’t have to be a mathematician or property expert to work out how deeply flawed these policies are,’ he explained. He pointed out that there are currently 11 million people renting property in the UK, which amounts to about 20% of the population and includes 1.5 million families with children. ‘There are around four million rental properties available and if just 10 to 15% of landlords decide to withdraw from the rental market because they are uncomfortable with Labour’s proposals and feel unable to manage their risks, particularly when mortgage rates rise, these homes will no longer be available,’ he said. ‘These tenants will either become homeless or face the appalling consequences of having to move in with family and friends on a long term basis,’ he added. Gonsalves also pointed out that when you look at the promises made on new homes from all the main parties, the most that any party has pledged is 300,000 properties in the next five years. ‘Clearly this figure will not even begin to satisfy current demand, which is the reason that we’re facing a housing shortage,’ he said. ‘We should not forget that it was the Labour Government’s incompetence that contributed to the financial crisis of 2007 and 2008, which resulted in a credit crunch that has left millions of people unable to obtain mortgages or save for a deposit to buy their own home. It is therefore very short sighted and totally irresponsible of Labour to introduce policies that will drastically reduce the number of available rental properties,’ he commented. ‘Landlords are very tired of being made to look like criminals who are constantly looking to rip off tenants and provide low quality housing. In our experience, 99.9% of landlords are decent people that provide decent housing for tenants on a long term basis,’ he added. The Belvoir rental index shows that in most parts of the country there has not been the major rental increases that Ed Miliband speaks of. ‘However, if we look back over the past five to 10 years and apply Labour’s proposed inflation rule for rental increases to many parts of the… Continue reading
Shortage of bricks and bricklayers in UK could hamper new home building
The increasing shortages of bricks and bricklayers in the UK could threaten future house building plans, according to the Federation of Master Builders (FMB). How to solve the current housing crisis is one of the hot topics in the run up to the general election with all parties pledging to build new homes. But the latest FMB state of the trade survey reveals shortages. Half of all small construction businesses, that’s one in two firms, are finding it difficult to recruit bricklayers and 62% of firms are waiting for up to two months for new brick orders while almost one quarter are waiting for up to four months. An additional 16% are waiting for six to eight months. ‘The brick manufacturers are working hard to reignite their kilns which were mothballed during the recession and the ever growing lack of bricklayers is causing concern,’ said Brian Berry, FMB chief executive. He pointed out that compared to this time one year ago, more than twice the firms are reporting difficulties recruiting these tradespeople. In the short term, many SME house builders may have to rely on migrant labour. ‘To ensure we have an ample supply of skilled workers in the future, the next Government must ensure it sets the right framework in terms of apprenticeship funding and apprenticeship standards,’ said Berry. ‘Also more construction firms, large and small, need to willingly engage with training. After all, there’s strong evidence to suggest that training apprentices is good for business,’ he added. The survey also shows that the private new housing market saw its net balance increase by 5% to +13. More businesses reported higher workloads while those indicating no change in workloads decreased to 49% from 62% in the fourth quarter of 2014. The net balance for total enquiries remained in positive territory for the eighth consecutive quarter as it jumped by 27% to +29. Fewer firms stated lower levels of enquiries, compared with the previous quarter, while more respondents reported a higher level of enquiries. The net balance for total expected workloads increased by 25% to +30. The percentage of businesses with negative expectations went down, to 15% from 24%, while those anticipating higher workloads saw a rise, from 29% to 45%. Around 40% of firms predict no change in workloads, down from 46% in the previous quarter. The residential sector’s net balance moved back into positive territory as it rose by 22% to +19. Some 32% are predicting higher workloads over the next three months, up from 18%, while fewer firms are anticipating lower workloads. The private new housing market’s net balance jumped by 24% to +30. The proportion of firms with positive expectations for workloads went up from 22% to 41%. In contrast, those anticipating lower workloads declined, to 11% from 17% in the previous quarter. Continue reading
