Local government bodies warn about a crisis in the private rented housing sector after a report finds that 76% of district councils have seen a rise in landlords selling up properties, or converting them to Airbnb short-term lets.
This move has sparked a rise in housing waiting lists making it harder for those in need to find permanent accommodation, says the report by the District Councils Network.
It adds that 48% of these councils say their housing services are under “significant pressure” as landlords move out of this sector.
The report cites one unnamed council in a popular tourist destination in the south-west of England, which has seen an almost 80% plunge in available long-term rental accommodation over the last three years.
The report says tourist destinations are under greater housing pressure, as there is more opportunity for landlords to convert properties into short-term accommodation for holidaymakers.
Last month, rents hit a 13-year high as demand in the central zones of major cities doubled, according to property website Zoopla.
It found that the typical cost of renting a home in the UK, excluding London, now stands at £809 per month, a 6% rise from a year ago.
The Zoopla survey also found that demand for rental homes is 43% above the five-year average, but the number of properties available to rent is 43% lower than usual.
The District Councils Network survey says: “Landlords are leaving the market due to the impact of the pandemic, with tenants unable to afford their rents, landlords requiring to move into a property themselves and a rise in ‘staycations’, leading to a boom in the short term holiday let market.”
It adds that councils warn that housing benefit payments will not be enough for hard to tenants in the longer term, as the government looks set to keep Local Housing Allowance rates, which determines the amount of benefit received, frozen over the next year.
The District Councils Network, which represents almost 200 district councils, calls on the government to increase investment in council housing and allow councils to create permanent housing in their areas
Chair of the District Councils Network Cllr Sam Chapman-Allen says: “This survey reveals a perfect storm of problems creating a crisis in the private rented sector across the country.
“Now the government’s eviction ban has ended, this is a problem that could get worse, with councils also seeing an increase in the numbers of tenants needing housing support due to increased evictions due to rent arrears.
“During the pandemic, district councils and the government worked together to help protect those who are most vulnerable through the Everyone In initiative, the temporary banning of no-fault evictions, and other measures such as furlough and the Universal Credit uplift.
“We need to urgently tackle this issue by permanently lifting housing benefit for tenants in private rented housing and for an increase in government support to invest in a renaissance of council house building to create homes, jobs and growth.”
Local Government Association housing spokesperson Cllr David Renard adds: “These findings are concerning and highlight the need to tackle our severe housing shortage by building more social housing, which is much more affordable than in the private rented sector.
“We have set out the case for building 100,000 social homes for rent each year, which would go a long way towards reducing council housing waiting lists.
“We also need to see a cross-departmental government plan to tackle homelessness with long-term investment in prevention and services to support economically vulnerable people and households, to prevent homelessness from happening in the first place.”
The District Councils Network survey asked 71 district councils about local housing pressures, with responses submitted from June 2021 to the end of November 2022.
