According to the trade body’s recent Spring survey of its letting agent members, more than 50 per cent of their client landlords do not intend to increase their portfolios
The UK Association of Letting Agents (UKALA) has warned of “widespread evictions” unless government support is offered to tenants.
UKALA chairman Tim Clark says: The restrictions on evictions during the last year, whilst very appropriate for the time, could result in an explosive situation without the government providing more support to tenants.
Landlord mortgage payments still need to be made and rent arrears will still exist. Without more support to tenants, as has been done elsewhere, there will be widespread evictions, leaving many tenants in impossible positions, he says.
The government has effectively kicked the can down the road on this one. Currently, potential evictions are merely being postponed, but tangible help for tenants could help avoid them and the distress they bring, Clark says.
According to the trade body’s recent Spring survey of its letting agent members, more than 50 per cent of their client landlords do not intend to increase their portfolios and 40 per cent are actually planning to reduce their portfolios.
The association says this is worrying because the private rental sector is being relied upon to prevent a housing shortage and homelessness in the absence of appropriate volumes of social housing.
Clark continues: This situation, suggesting a possible reduction in the size of the private rental sector, adds a further potential squeeze on top of the evictions boiling pot.
Unfortunately the government has yet to recognise that, without help, tenants may not be able to rent again. An eviction, due to rent arrears, can affect a tenant’s credit rating, virtually precluding them from renting again in the PRS, he says.
He says this is one area where government urgently needs to organise support for tenants to avoid evictions, perhaps by giving interest free loans.
The articles are for information purposes only and Invest for Property shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.
Invest for Property does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.
Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
Credit: Source link