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Could the North East lose thousands of cheap rental homes?
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
It has been estimated that up to 26,000 of the North East’s cheapest rental properties could be lost by 2020. One property campaigner in particular feels that this gives more evidence that renters should be given better deals.
Figures
Official Government figures released last week indicated that the number of affordable homes available at social rent in Britain fell by 120,000 between 2012 and 2016. This was largely as a result of Right to Buy.
Forecasts from the Chartered Institute of Housing predict that this number will rise to 250,000 by 2020-which will be an overall drop of 10%.
Should these figures be replicated in the North East, it would leave 25,951 less cheaper homes in the region. By area, this would be a reduction of:
Newcastle-3485
Sunderland-3240
North Tyneside-2494
South Tyneside-2120
County Durham-4500
Northumberland-2584
Could the North East lose thousands of cheap rental homes?
Deals
Ajay Jagota, founder of sales and lettings firm KIS, said on the figures: ‘This is yet more evidence of the burning need to give renters a better deal.’[1]
‘It’s no secret that there has been a long-term shift in the UK away from social housing towards the private rented sector. The problem is that the private rented sector hasn’t necessarily evolved to meet the needs of that demand. The biggest example of that is tenancy deposits, which place a huge financial burden on some of our poorest tenants – leaving good people left priced out of good homes rented from good landlords,’ he continued.[1]
Mr Jagota feels that: ‘The easiest way to help them would be to abolish tenancy deposits and for the industry to use sophisticated insurance policies instead. Such a move could save the average renter £1400 while actually protecting property investors assets more effectively.’[1]
‘The craziest thing is that the majority of social landlords do not take deposits, and they seem to manage perfectly well without relying on an out-dated and draconian deposit system. If privately rented homes are the future, why is the privately rented sector stuck in the past?’ he concluded.[1]
[1] http://www.propertyreporter.co.uk/landlords/thousands-of-the-north-east%E2%80%99s-cheapest-rented-homes-to-be-lost-by-2020.html
