Labour signs up to #endsection21
We kind of knew this already, but Labour is officially backing our campaign to end Section 21 and will scrap landlords' ability to evict tenants without giving a reason. It was reported by the BBC this morning, was part of the shadow Housing Secretary John Healey's speech in the conference centre, and then a motion on housing that included it was passed.
This follows members of the End Unfair Evictions doing a lot of work behind the scenes to successfully get local Labour parties to support the motion.
An even bigger piece of news was a £20m pot to jumpstart tenants' unions in the UK, reported by the Independent.Read more
How new rent controls could work
The biggest talking point of Jeremy Corbyn's speech to Labour Party conference this week was rent controls. Since 2014 Labour has been proposing to limit rises in rents during tenancies, but there was something different this time around.
This is what the Labour leader said on Wednesday:
We will control rents - when the younger generation’s housing costs are three times more than those of their grandparents, that is not sustainable. Rent controls exist in many cities across the world and I want our cities to have those powers too and tenants to have those protections.
Are banks behind your latest rent rise?
This morning, Mortgage Strategy magazine and the Daily Telegraph reported that Santander is requiring its buy-to-let borrowers to raise the rent on their tenants as high as possible.
The bank even demands that landlords get a valuation of the market rent every time the tenancy is up for renewal and then "take all steps to ensure that the review [with the tenant] takes place and leads to the maximum increase in the rent which can reasonably be achieved."Read more
It never rains...
There has been a flurry of bad news for renters over the past few days.
- According to Homelet, rents have risen by 8.2% in the past year.
- One in five Londoners has no disposable income at the end of the month, according to the Centre for London, which has coined the term "Endies" in their report, "Hollow Promise".
- Shelter has found that the Bank of Mum and Dad is shelling out £23,000 on average to help their kids into a home of their own.
- The National Housing Federation has found that a first time buyer today has to raise a deposit 10 times bigger than their parents would have - after taking inflation into account.
- And this morning, it's the turn of the Office for National Statistics to tell us that house prices have jumped 13.5% for first time buyers in the past year. That's another £5000 to find this past year alone - and the picture is even worse in London.
Politicians are waking up to the fact that the 9 million private renters being shut out of home ownership and social housing need a stable, decent and affordable home. Only last week the government announced its support for a Bill to end revenge evictions.
But we need to keep the pressure on - both to reform private renting and build more genuinely affordable homes. To do that we need your voice - so please sign up to the campaign.
Housing market slowing - unless you're a first time buyer
Is house price inflation starting to slow? Across the whole market, it would seem so, with the Office for National Statistics finding inflation fell from 10.4% in May to 10.2% in June. That is still well above anything that's remotely healthy - and house prices were already historically expensive, even after the 2008 crash.
But first time buyers have it particularly bad. If you want to buy a house, prices are now 12 percent higher than they were a year ago (in May inflation was running at 11.3%). For people who already own a house and want to move, they are seeing a slowdown - from 10% to 9.5%.
17 Reasons Your Rent Is Too High
If you've ever wondered why renting is so expensive, we've compiled a handy list and published it on Buzzfeed.
Click here to see all 17 reasons.
Landlords milking two days wages a week from tenants
Private renters spend 40% of their income on rent, compared with owner occupiers whose mortgage payments average 20% of income, according to the Government's English Housing Survey published this morning.
That means that renters spend two days a week working to pay off their landlords mortgage - most would prefer to be paying off their own, but house prices are far too expensive. It's hard to see how this could be characterised as anything other than exploitation.
An initial set of figures for 2012-13 was published in February - today's more detailed look reveals that:
- Only half of private renters agree that living in their sector is a good way to occupy a home, rather lower than in the other two main tenure groups.
- 73% of private renters were aged under 45 compared with 37% of social renters and just one quarter (27%) of owner occupiers
- A fifth of private renters last year were couples with children - up from 12% in 2008-09
- Over half (55%) of private renters said they anticipated owning their own home in the longer-term. Around a quarter (27%) reported that they expected to still be renting from a private landlord in the longer-term.
This graph makes it clear just how inadequate the private rented sector is - we have proposed a number of policies to fix it in our Renters Manifesto - and sign up here!
Half of renters feel ripped off
Nearly half of private renters feel they have been ripped off by their landlord or letting agent, according to a poll commissioned by Ocean Finance (reported by Mortgage Introducer).
The biggest problem, cited by around half of unhappy renters, was the delay - or, indeed, complete failure - to get repairs carried out. This was followed by withholding of the deposit at the end of the tenancy (37%), or making unreasonable deductions from it (25%). Unreasonable rent rises and rip-off admin fees at the start of the tenancy affected around 23% of respondents.
These findings support work Generation Rent is already doing to improve the lives of renters. Only yesterday we published a consultation on new ways to help tenants recover their deposits.
We are also calling on politicians to strengthen tenants' rights when requesting repairs by protecting them from revenge evictions. Our proposals for a long term tenancy would ensure that landlords couldn't impose inflation-busting rent increases, while we argue that letting agents - who work for landlords - should not be able to pass on fees to tenants. Further information is in our Renters Manifesto.
Heating, Eating, or Paying Rent?
Figures released by Generation Rent today add to the growing body of evidence that the private rented sector is failing tenants and needs to be reformed. Based on an opinion poll from ComRes, Generation Rent has found that the cost of rents continues to hit too many, with 39% of those polled cutting back on heating due to the cost of rent and a third reducing their spending on food. Affordability also keeps people stuck in private renting when they want to leave. Two thirds of renters say that the main reason they rent is because they cannot afford to buy their own home.