Agenda item

To receive the report of Kayt Wilson, Head of Private Housing Solutions.

RECEIVED the report of Kayt Wilson, Head of Private Housing Solutions.

NOTED

1.    Councillor Savva, Cabinet Member for Social Housing introduced the report.

2.    The Renters Reform White Paper was published on 16^th June 2022, the proposals in the white paper outline a new private renter’s bill. The Government intends to bring forward this Bill in the 2022-23 parliamentary season.

3.    Central government believe that the Private Rented Sector (PRS) does not meet the needs of all residents and aim to deliver a fairer, more secure and high quality PRS by focussing on the following main points: Safe and Decent Homes, Increased Security and Stability, Improved Dispute Resolution, Better Compliance and Robust Enforcement and Smoke and Carbon Monoxide Regulations 2022.

4.    The values of the Renters Reform White paper align with that of the Council’s Housing and Growth Strategy. The Council has a key role to play in shaping the private rented sector by the introduction of the selective licensing scheme and the continued growth of Housing Gateway Ltd (HGL).

5.    Further key points of the report highlighted by Kayt Wilson, Head of Private Housing Solutions. Members were invited to raise questions and comments.

6.    In response to Members’ queries regarding the impact of the Renters Reform White Paper on the Housing Advisory Service it was advised that for landlords, the high market value combined with the cost of improving their properties means that many are exiting the market, and this is a trend that may be expected to continue. These factors have led to a shortage in the supply of privately rented properties and a rise in rent levels. To mitigate these problems the Council are offering landlords the option to lease or sell their property, this is a joined-up piece of work, using the Landlord’s Forum to spread the word. However, the White Paper does not address the main issues of affordability and supply of accommodation in the Private Rented Sector (PRS) and this remains one of the Council’s biggest challenges and contributors to budget pressures.

7.    In response to a question regarding the levels charged for rent it was explained that the decision-making process uses two streams; affordability for tenants and state aid.

8.    Members asked for an update on the portfolio position of Housing Gateway Ltd (HGL). Officers advised that HGL has a portfolio of 660 owned properties and 250 leased properties which means it is one of the largest PRS landlords in the borough. HGL is well placed to meet the proposed requirements of the Renters Reform White Paper.

9.    In response to Members’ concerns regarding requiring more homes Officers acknowledged that this was a desperate and challenging situation. Enfield Council are building new homes but unfortunately this is still not enough to meet demand and this was an issue affecting all London boroughs  The Climate Change Bill was also creating pressures as it will cost Local Authorities a substantial amount of money to modify properties to the required standard.

10. Officers provided further information on the shortage of private rented accommodation across all boroughs and the reasons for this which included landlords exiting the market due to changes in tax laws. As a result of this, and the pent-up demand for accommodation, more residents are having to be housed in commercial hotels, and it was agreed that this was far from ideal.

11. Officers went on to advise that the ideal option to address demand is to build new homes. However, inflationary pressures are making it very difficult to enter into affordable contracts with providers. Therefore, as a result of this Enfield Council’s response has been to switch rapidly to acquiring homes which economically is the next best option.