The Housing Crisis (2)
The objective of this posting is to try and put more roofs over the heads of those with lower incomes in the presently challenging rental housing market.
The rents landlords obtain should be decided dependent upon true market conditions not by the landlords themselves (or indeed by their agents). The fact that so many local tenants find these too high to afford, strongly suggests that the marketplace is not functioning correctly. The correct solution would be to enhance the method by which rents are arrived at, in the individual local marketplaces where they are generated.
The problems with rent levels, actually go back as far as the ‘right to buy’ regime in the 70’s and even before that. Councils and government cannot realistically pretend that the PRS (private rented sector) is now to blame when the markets in which they are operating, are themselves malfunctioning and have been for years.
The PRS has in point of fact performed a vital role in propping up the rental sector pending the supply of replacement municipal housing to assist those whom are in need and currently unable to provide for themselves. Meanwhile unfortunately, hardly any replacement social housing has been provisioned to replace what has been lost in sales to sitting tenants!
The same failings are also affecting price-setting of all houses currently being sold today and the finance industry is complicit in facilitating that. These, like local rents, are becoming progressively over exaggerated.
For more on this please see:
The House Price Virtuoso Solution: Full details of our proposals for properly reforming all housing markets in England and Wales
Here, we explain in more depth why these problems exist and precisely how they may all be resolved.
An example of the sluggish performance of central government is in reforming residential leasehold tenure in the housing markets.
More and more owners with leasehold interests are now finding these becoming depreciating assets owing to the doubling of ground rents by landlords. Because of this these leasehold interests are worth less and less!!
This is a further reason, highlighting the need for central government to take swift and direct action to resolve these crises within all the local housing markets across England and Wales.
I respectfully ask the government to institute such action quickly.
Peter Hendry, Author:– The House Price Virtuoso Solution previously The Hendry Solution