Housing minister, Caroline Flint, has backed calls from the British Property Federation (BPF) for a greater focus on professional rented housing.
Speaking at a Citizens’ Advice Bureau fringe event, Caroline Flint MP said that Britain had been focused on ownership since Margaret Thatcher introduced Right to Buy.
She said traditional labour supporters had, “voted with their feet”, by changing allegiance.
However there was agreement that an improved rental sector could deliver better quality homes, and security of tenure, for those seeking accommodation.
Flint’s support for the professional rental sector comes as figures are published showing a 65 percent rise in demand for rented homes over the last year.
Flint said: “I do believe there is a role for local authorities in helping the rented sector. In Norwich already they are organising a centrally managed agency where they can work with landlords to sign up to a partnership with them in terms of providing extra capacity for social housing.
“I also recognise that a lot of larger property firms currently developing offices and retail centres are interested in the rental sector. There are many good ideas floating about.”
Andrew Teacher, spokesperson for the BPF, said: “We very much welcome the open and innovative approach of the minister regarding the delivery of a professional rented sector to mirror that of Germany and the Netherlands.
“Clearly, obtaining institutional investment at the current time will be challenging, but with the right model in place, and more importantly, the right support of local councils, we can look to change people’s perceptions of rented homes and deliver much needed new housing that is both affordable and of good quality.”
• Within days of the collapse of Lehman Bros, Cluttons reported that city tenants in high-price properties were already giving notice, unsure of their continuing ability to meet rental commitments.
This has led to a reminder from let property insurance specialist PropertyRisks that landlords should ensure that they are adequately protected against rental defaults.
Miles Ritchie of PropertyRisks said: “These are exceptional circumstances and landlords need to be aware that even high-income tenants may hit tough times. It is important that landlords are aware of the increasing risks of default and the steps they can take to mitigate potential losses. As we have seen only too well, personal circumstances can change overnight and a previously rock solid tenant can find themselves in financial difficulties.”
For landlord protection, PropertyRisks recommends that landlords consider the benefits of legal expenses and rent guarantee cover. This provides cover for the legal expenses involved in gaining vacant possession of a property, which could amount to between £1000 and £5000, and covers the rental income lost during the legal process.
Ritchie added: “Some landlords with city-based tenants are already facing lost rentals on premium properties. With economic uncertainty continuing, they will be well advised to consider potential risks when entering into new tenancy agreements and take steps to protect their rental incomes.”
