Landlords Corner – Tackling Housing Crisis Will Impact Landlords
News of changes to tackle the housing crisis in one London borough could have implications for landlords, property investors and the lettings market in general. On the 16th of January 2024, the cabinet for Haringey council voted to impose a 200% council tax on properties that have laid empty for a year.
This is a reduction from two years, and the charge will come into effect on 1st April of this year. The council also has plans for a further council tax charge on fully-furnished second homes that lie empty, although this will likely come into effect in 2025.
With around 1,000 properties lying empty over the long-term in Haringey, and 34,000 across London, it is easy to see why this change is underway. It is also fair to assume many other London councils will look on with interest. If this measure reduces the number of empty properties, and brings more money into council coffers, it is likely that similar changes will occur across the capital.
What does this mean for landlords?
If you are interested in how this will impact the London lettings market, we are always here to help, and go into greater detail than we can do in a short article. It is likely that many of these empty properties will be placed onto the rental market. This will increase the supply of property in the local market, which might impact current landlords’ ability to maintain current levels.
Then again, if an area has a greater supply of available rental property, it makes it more appealing to likely tenants. This can drive demand for homes in an area, and existing landlords might experience an uplift in demand for their accommodation.
As with many things in the lettings market, you can argue both outcomes occurring. Until changes happen, you don’t know what will occur, but as experienced property management specialists in Leytonstone, we know the London market well, and can respond positively, whatever occurs.
We also appreciate many property owners will be keen to avoid this higher charge, and might be on the lookout for a skilled and experienced property management specialist. This is our area of expertise, as our reviews show, and if you want more details on how to successfully let a property in London, we are always here to assist you.
The housing crisis must be tackled
Cllr Dana Carlin, Cabinet Member for Finance and Local Investment, said: “We are determined to turn Haringey’s empty dwellings into new homes. Londoners are in the grip of a housing crisis, and bringing unoccupied homes into use is part of the solution. Across the capital, there are more than 34,000 long-term empty homes – that is over half the number of London households that are currently homeless and living in temporary accommodation.”
Dana Carlin continued by saying: “In Haringey, we have more than 13,000 households on our housing waiting list and last year alone we received 4,400 homelessness applications, one of the highest in London. When affordable and good quality homes are in such short supply, empty properties - whether it is a short-term holiday let, a second home, or a home left empty - drive up the cost of renting locally. We believe it’s fair that those who can afford to keep their properties unoccupied for long periods should either contribute more to preventing homelessness or explore more socially responsible ways for their properties to provide them income.”
We are always here to help
Many landlords struggle with paperwork, and staying on top of legislation, but we are here to assist you, ensuring your tenants receive everything they need in your rental property. if you are looking for guidance on the Leytonstone rental market, or you just want a helping hand in complying with rental market regulations, we are always here to assist you.
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