Labour has carefully crafted an identity this election as the party of housing. But if you look at the details, what they’re proposing is terrifying for the average person.
By Lindsey Garrett of the New Era EstateRead more
It was hard yesterday not to have some sympathy with Green Party leader Natalie Bennett after that painful interview. But coming unstuck on the numbers or not, it highlighted the point that they are the only party with a shot of winning seats (in England at least) that actually has a target for building significant numbers of social homes and which has identified private sector landlords as the ideal source for funding this.Read more
Inspired by Savills' findings on landlord capital gains last month, we decided to look at just what sort of money landlords in the UK are making – and how much we the taxpayer are helping them.
As reported in the Guardian this morning, UK landlords make £77.7bn each year in rent and capital gains. This is more than Morocco’s GDP of £68.6bn (for a country of 33m people), making the industry the 61st largest economy in the world (UN 2013).
They are also subsidised to the tune of £26.7bn in tax breaks and housing benefit. That is higher than the £25bn of cuts that George Osborne claims are needed after the election. It is also more than our spending on the overseas aid budget of £10.3bn, job seekers allowance of £4.34bn, the Department for Culture, Media and Sport’s entire budget of £6.14bn, and the £1.13bn Affordable Homes Programme put together.
The cost of landlord subsidies to Britons is £1011 per household. That is the cost of a week’s holiday for four in Majorca, a 55” HD TV, or a Boardman Road Team Carbon bike.
A recent government update on the UK’s benefit system revealed that five million people are claiming housing benefit. It’s therefore of no surprise that comments by the previous Minister of Housing, Kris Hopkins, regarding renting housing while receiving this benefit enraged and worried many, including MPs. In a Panorama documentary aired last month, Hopkins described the landlord’s right to evict those on benefits as “perfectly legitimate”, sparking fury amongst those who utilise this country’s financial support system. However, was Hopkins right? Is the tenancy completely dependent on the wishes of the landlord? Or, is this yet another case of discrimination against those who aren’t rich enough to be heard?
The latest English Housing Survey was released last month, covering the period from April 2012 to March 2013, based on field surveys of a sample of 13,652 households.
The survey covers all housing tenures but has a particular resonance for private renters. As has been widely reported, the PRS is now the second largest housing tenure behind home ownership, at four million households. This amounts to 9.1 million private renters in England, calculated multiplying the number of households by average PRS renter size. Unfortunately the statistics do not paint a good picture for private renters and show why campaigning on these issues is so vital.Read more
Astonishing figures recently published by the GMB union show the huge profits that landlords in the private rented sector are making through housing benefit payments.
The numbers show how the welfare bill is directly inflated by the huge rents that landlords are charging to their tenants on housing benefit, costing the state millions each year and ending up in the pockets of a small number of peopleRead more