Skip to main content

Private landlords are the new bankers

New figures, published by lender Kent Reliance, have revealed private landlords will own £1tn worth of property by next year. The figure currently stands at £930.7bn, three-and-a-half times what it was in 2001. 

Through times of austerity this represents extraordinary growth and an immense hoarding of wealth by a small elite, about 2% of the population are private landlords, who do very little to actually earn their money. We are not talking about innovators, researchers, scientists or manufacturers here. Private landlords have ridden one of the few waves to be found in post-recession Britain, the property game, propped up by desperate tenants and government handouts. The boom in the private rented sector is actually being subsidised by the taxpayer - £9bn of housing benefit payments end up in the pockets of private landlords each year

Those of us who have been renters in the years since the crash have seen repairs go undone month after month and rents invariably rising in exchange for less security of tenure and poorer conditions. The sector is a complete mess and taking no action to get its house in order. The Chartered Institute of Housing’s UK Housing Review 2014 found a third of private rented homes in England are failing to meet the government’s Decent Homes Standard (a requirement for social housing). Yet the average landlord has seen a return of 15% over the past 12 months – about £27,475 per property. The sector return was £124bn.

Private landlords are not just getting richer, they are becoming more powerful too. They are now the default provider of housing for some of the poorest families in Britain as social housing dwindles away. They chuck tenants out without recourse, knowing that another occupant can replace them that same afternoon – think Fergus Wilson who evicted 200 tenants for the crime of being in receipt of housing benefits. This was an act of discrimination that should be made illegal, but following a polite period of public head nodding disapproval and tutting nothing changed. The government's response to this slum sector is simply to drive even more vulnerable people into its hands.  

Generation Rent research shows the extent of potential electoral influence renters could wield in the future – renters are on course to outnumber homeowners in over 100 constituencies. Private landlords are the new bankers: under performing, overpaid, under taxed and unaccountable. Their accumulation of power and wealth is feudal - we must challenge this grotesque excess. A windfall tax, with the proceeds being invested into building new social housing and/or driving up the standard of rented homes, would be a good place to start. 

Comments

Popular posts from this blog

Charities, politics and pragmatism

This blog considers the parameters and possibilities for charities seeking to influence policy in the context of a looming general election. There are two broad questions for charities to think about when developing their approach to public affairs. One relates to legalities and the other pragmatism. I will briefly reflect on each in turn.  I wanted to start by making a statement that should go without saying. Attempting to improve public policy is a noble pursuit. Many undermine and belittle it, often driven by ideological or commercial interests, however this activity is vital to a thriving democracy. It should be prized; and pursued without fear or favour. It is entirely proper for charities to argue for changes in policy, regulation, law and spending. Guidance from the Charity Commission makes clear that "campaigning and political activity can be legitimate and valuable activities." Although it should not be the sole purpose of a charity and must be undertaken "only

It’s called ‘public’ health

In times of trauma, we look to family, friends and neighbours for solace and strength. But the nature of the COVID-19 threat, a virus transmitted through close contact with others, tested this instinct. Despite that, people emerged as one of the main tools in the response to COVID-19. Communities rallied to deliver food parcels and medical supplies, we wore face coverings to protect others and adapted our behaviour as part of a common cause to limit illness and death. One innovative approach to building and sustaining community power was the COVID-19 Community Champions Scheme . As rapidly developed vaccines offered hope, attention turned to delivering messages to diverse and disadvantaged communities that made them feel comfortable about stepping up and receiving a vaccination. The messenger was key, especially in poorer areas and particular ethic minority groups. They had to be trusted by people and rooted in their area. The idea behind Community Champions was to encourage and

Don't be poor

Following the Spring Statement in March, the Resolution Foundation published analysis estimating that another 1.3 million people would be pushed into poverty next year. Professor Michael Marmot has warned of an impending “humanitarian calamity” and argued that to deprive citizens of basic material needs robs them of their dignity. In place of a policy response to the poverty pandemic there is a void. Cue the Health Disparities White Paper (currently being drafted in the new Office for Health Improvement and Disparities). It could be out as soon as May or June, so the influencing window is narrow. The priority given, by the public and politicians, to tackling the elective backlog in the NHS is understandable. We can see it, right here and right now. However, the Secretary of State for Health and Social Care has also acknowledged the link between poverty and poor health and outlined his ambition to address the ‘social backlog’. Both are essential and both are connected. The Preve