London councils are increasingly relying on private landlords as far away as the West Midlands to accommodate homeless families.
Between April and June, 471 households were housed by London councils outside the capital. Most will have used private rented accommodation to do so.
According to the magazine Inside Housing, London councils are now set to agree capped sums for incentivising private landlords outside the capital to let properties to homeless families.
The magazine suggests that generous incentives offered by London councils mean that landlords outside the capital are letting properties to London, rather than local, families.
It says that as a result Birmingham City Council is struggling to find private rented stock to take homeless households, because it cannot match London councils’ incentives.
The areas taking the most out-of-London homeless families between April and June this year were Thurrock, Essex, and Medway, Kent.
Between 2012 and 2015, London councils paid a total of £17.7m in incentives to private landlords.
So there’s a shortage of property and the government wants to license and tax the life out of buy to let investors!
Not sure the right hand knows what the left hand is up to.
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Perhaps Council have a warped idea of incentivising. That might be why they all keep banging on about bringing in more and more controls – perhaps they think all landlords enjoy being “landlord Bashed”
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It really does make you wonder what the hell is going on – Does Cameron & Osborne realise that by 2020 with NO incentive to carry on in the Private Rental Sector there are not going to be that many private Landlords who will feel the need for this stream of nonsense that is pouring out onto Landlords at the moment. Perhaps these Politicians need reminding that they represent ‘ALL’ the people, not just a minority part of them, ie., Tenants……… let us see a levelling of a fair and decent playing field for all, including Landlords before we are all forced to sell up and go. And as a warning……. don’t think it won’t happen
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Jad, I think you will find there are more tenants than landlords and the Gov are playing to the other side as that means more votes! Tenants might eventually wake up to find landlords exiting the market. Overall though the real problem is lack of new property which is driving up rents and sales prices. Increasing the population by migration and natural growth will make matters worse. Having said that I agree with your sentiments.
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It shows how far away from reality Osborne and Cameron really are.
But this could be good news. If Councils are going to bid up the prices of the decreasing PRS availability, then that may help me keep my let properties. They are applying the upward pressure on prices themselves.
So the Government takes at the tax level. Then the Government gives back at Council level.
Meanwhile landlords go bankrupt, tenants are evicted and Osborne and his pals get richer and mop up distressed property sales.
What a mess.
Jason McClean
http://www.thepropertyinsurer.co.uk
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