Extend security of tenure to help fix 'broken' housing market - report

Published by 24publishing for 24dash.com in Housing and also in Local Government, Tenure

Security of tenure in the private rented sector should be extended from six months to 24, according to a new report, which says much of England is becoming increasingly reliant, by default, on the private rented sector.

That call, alongside increasing capital investment in new affordable homes and the regulation of the private rented sector, has been made in an in-depth report by the year-long Housing Voice Independent Inquiry.

Chaired by Lord Larry Whitty, the inquiry heard from more than 60 organisations and nearly 3,000 people.

It makes 10 “emergency recommendations” which the Government could act upon immediately to help tackle the housing crisis - as well as other legislative and funding measures it needs to take on board in next year’s Comprehensive Spending Review.

It also calls for a National Commission on Affordable Housing to report before the 2015 General Election.

Among the medium term recommendations it has called for a statutory system of private rented sector regulation, e.g. more guaranteed minimum standards for tenants including increased security of tenure with 24 months notice becoming the norm not six and safeguards against extortionate rents being charged.

It said successive governments have prioritised owner occupation, but it is now in decline.

It highlighted figures that showed in London the proportion of owner occupiers, estimated to be currently 51.6%, will be less than those who rent i.e. under 50% by 2021 at the latest.

It warned the lack of access to both homeownership and social housing put greater demand on the private rented sector which in turn creates a further upward pressure on private rents.

It also wants the release of public sector land – particularly council-owned – accelerated and calls for an extension of the mortgage help scheme Firstbuy to existing homes.

Lord Whitty said the evidence heard in the inquiry demonstrates the housing market through England is “breaking down”.

He said: “Successive governments have prioritised owner occupation, but it is now in decline and we are reaching a tipping point when the average age of first time buyers could soon be over 40 – potentially spelling an end for the traditional 25 year mortgage.

“The housing “have nots” are  being shut out of owner occupation and consigned to the private rented sector, which by default is getting bigger and bigger but where families do not have security of tenure and face ever increasing rents as well as highly variable standards, sometimes unacceptably poor.”