The Government must prioritise investment in the Private Rented Sector (PRS) or else the continuing lack of available properties, numerous regulatory issues and financial barriers to entry will keep rents high, Propertymark has warned.

And the trade body told The Neg that “a worrying mismatch” between supply and demand in the PRS was continuing to cause problems.

LETTINGS PARTNERSHIP

The comments come after East Suffolk Council (main picture) launched a lettings partnership to help tenants access rented housing.

The Council is creating East Suffolk Lettings and introducing a Guaranteed Rent Scheme to increase PRS access and minimise the use of temporary accommodation.

East Suffolk Lettings will encourage landlords to work with the Council by charging a lower rent at Local Housing Allowance or within 10%.

Landlords will be offered a financial incentive based on the difference in cost between what they would have been able to charge, compared to the lower rate they are charging.

In return, the Council will guarantee the rent is paid on time and will provide support to the tenant to ensure the tenancy is managed appropriately.

This will include completing inventories, three-monthly home visits to check on the condition of the property, supporting with benefit claims and managing utilities.

HOMELESSNESS

Councillor David Beavan, East Suffolk’s Deputy Leader and cabinet member for Housing, says: “Many more people face homelessness this year as private rents rocket, mortgages soar and landlords look to sell.

“After a slow building programme and right to buy sales, we sadly just do not have the houses to offer to prevent or relieve homelessness, which is our statutory duty.

“This imaginative letting policy, devised by our great housing team, will certainly help.”

Funded through the Homelessness Prevention Grant, received from the Department for Levelling Up, Housing and Communities, the scheme will be offered on a two-year pilot basis and if successful will become a permanent service.

UNDERFUNDED

Nathan Emerson, Chief Executive of Propertymark, told The Neg: “We know that social housing is completely underfunded and that privately rented properties have been taking much of the brunt of this overspill for quite some time.

“Therefore, it’s positive to see that local authorities across the UK are incentivising landlords to help tenants into good quality, long-term homes and we are aware that some of our agents are currently working with other authorities who have introduced similar schemes.”

But he adds: “It’s not only the social sector facing issues with undersupply.

“A worrying mismatch is continuing in supply and demand levels in the private rented sector as people looking for rental properties continue to grow.

“Therefore, the fundamental issue of supply issues remains, and shifting private rented sector landlords over to the social sector will not address this issue.

“Due to the lack of available properties and because of an ongoing introduction of regulation and financial barriers for landlords, inevitably, rents are rising to keep up with increasing costs including tax and mortgage payments.

“The UK Government must prioritise investment in the sector and address this issue urgently.”