The cut in housing benefit, the housing shortage, the difficulty in getting a mortgage and the declaration by the government to enable social landlords to achieve up to 80% of the market value rents are just a few of the highlights of the average landlords year.
Never can the industries that are linked to the housing sector have been overwhelmed with so many seismic changes that are happening at the moment. Never can so many experts from one industry have such varying views.
The cuts to Local Housing Allowance have seen charities and local authority politicians suggest that London will witness a massive exodus as tens of thousands of tenants in the inner boroughs of London are forced to up sticks as they can no longer afford the rent on their home.
The very same cuts have seen experts from charities as well as Local Authority politicians say the cuts will force rogue landlords to stop charging extortionate rents and bring back a touch of sanity to the London rental market.
Landlords and tenants who have not really been asked their opinions wonder and wait. It is true that many Landlords around the capital have vowed not to lower their rents at all. That is possibly a knee jerk reaction that is quite natural when they feel they are being attacked. Tenants know that if they are on Housing Benefit then their next 12 months may be bumpy, but those in low income employment also know that the dirty jobs still have to be done by someone.
It is rumoured that councils are already block booking bed and breakfast accommodation in boroughs of London for next year when the cuts come into effect. The whole industry is in flux!
Many commentators think that the situation could be overcome in double quick time if only the banks would loosen their purse strings. Although industry experts say the days of 100% mortgages have gone forever, both residential landlords who are looking to extend their portfolios and young professional couples and families who are desperate to either get on the ladder or move up it, are just waiting for the chance to buy properties that don’t demand unreal deposits.
Behind these are builders keen to build and insurers eager to sell landlord insurance or home insurance to the new homeowners. Of course there are even more allied trades waiting for the chance to get back to new builds and renovation projects. It is fair to say the industry waits on the banks.