About the Campaign

The Living Rent Campaign was set up a year ago to campaign for rent controls, greater security, private landlord registration, voluntary ethical good practice landlord and lettings schemes.A petition signed by over 2,500 residents in support of the campaign was presented to the council in October 2014 and the council responded referring with unanimous support our 6 points for the housing committee to consider. • These points were:• 1) developing a licensing scheme for all private landlords as has happened in

Newham;• 2) highlighting the hardship caused to residents of the city by unaffordable private

sector rents;• 3) writing to the government to replace 6 month tenancies with longer tenancies as is

the case in some European countries;• 4) looking into developing ethical lettings agencies in the city, as well as supporting

the expansion of the ethical lettings agency at Sussex University;• 5) looking at setting up an ethical landlord accreditation• 6) supporting the building of homes at a living rent rate so that affordability is based

on people’s incomes not the market rate.

Campaign Events of the last year

Living Rent Campaign Presents Petition of over 2000 names at Hove Town Hall

Campaigners outside before we presented petition to the council

The campaign brought a deputation to Brighton and Hove Council Housing Committee in favour of living rents rather than 80% of market rents for new council housing

Post Card CampaignWe have sent over 400 post cards to your MPs and Councillors

Living Rent campaign postcards

Available here for you to send to your MP or Councillor

“Housing should be a human right not a privilege how would you feel if you were made homeless because there was decent housing around but you couldn’t afford it?”

Postcard comment

Let’s Look at the Private Rented Sector

Private rents are too high• Private rents across the

UK increased by 8.2% in 2014

• Average 3 bed house rent in (Dec 2013) £1449 per month in Brighton and Hove

• Average rent for a 1 bed flat is £867 per month (Home move Oct 2014)

Who are Private Landlords?

More than 78% of all landlords own a single dwelling for rent comprising 40% of the stock (ie approx 1.4 million landlords) (only 3% of landlords own 5+ properties)

“Living rent not market rents - rent is out of control. Do something about it. Also rents are unaffordable stop super rich

building houses in London and forcing up the rents for people who live there. Cap on rents and build affordable homes -

help the homeless”Postcard comment

The market has failed

Less regulated private rented sector has resulted in high rents not decent housing

37% of all private rented homes fail the decent home standard in Brighton and Hove

0% council homes fail the decent home standard in Brighton and Hove

yet Council rents are only aprox 40% of private rents

“Too many private owners taking housing and renting at inflated costs and not maintaining properties or access to streets surrounding stop this or increase their council tax for owners not tenants! Also not enough social housing greater need for its top selling off social housing. Also Ridiculous that families and individuals are being penalised in all ways with low pay high cost of living and high rents with no /little social housing” Postcard comment

Profitability of private rentingParagon calculated that between 1996 and 2013 the following investment returns

(clearly showing buy to let landlords are doing well!)

Type of investment Average compound interest return

Buy to let 75% LTV loan 16.3%

Buy to let without loan 9.7%

UK commercial loan 7.9%

Equities FTSE all share index 6.8%

Gilts 6.5%

Cash 4.0%

Are Landlords hard up?• On their own admission according to the private

landlord survey • one half of private landlords saved money in the

previous 2 years (and they will benefit from a capital gain on top of this as house prices rise).

• 60% of landlord get more than half of their income from other earnings

Can Landlords afford to get less rent?

Landlord say:• 78% feel their income is enough to meet

the cost of everyday outgoings• 20% of landlords saved £5,000 or more

over the last 2 years • And they are making a lot more on rising

house prices

Lets Not Forget Unethical Letting Agents

The middle man – some letting agents are also profiting from the housing crisis – charging exorbitant fees for contracts and renewals.

Rent controls and security tenancies is seen differently in

different countries

“In UK, USA, Australia and some European countries for instance rent and security regulation are seen as an impediment to investors…” continued over

“Towards a sustainable private rented sector” LSE

Rent controls and security tenancies is seen differently in

different countries

…. In other countries notably Germany, Switzerland and Austria are seen as stabilising the system and reducing the risks for both parties”

“Towards a sustainable private rented sector” LSE

Power of the banks

Banks set conditions when lending to private landlord such as how high the rent should be what kind of tenancy there is and they usually refuse to let the landlord lease the property to the council for a homeless household

”

“The rent and housing market create a dual economy that can only collapse

– REGULATE!”

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There is no link between rent controls and a small

Private Rented Sector (PRS)

Germany has rent controls and 43% live in the private rented sector compared to around 20% in the UK

Households affordability in Brighton

“The assessment of affordable housing need report (2012) identified 88,000 households (72%) in Brighton and Hove who cannot afford to (either buy or rent) without some kind of subsidy or spending a disproportionate level of their income on housing costs”

•The Housing Act 1980 was an Act of Parliament passed by the Parliament of the United Kingdom that gave five million council house tenants in England and Wales the Right to Buy their house from their local authority.

•The Act came into force on the 3 October 1980 and is seen as a defining policy of Thatcherism

• Michael Heseltine was Environment Secretary at the time. On proposing the Bill to Parliament in 1979 Heseltine said it "lays the foundations for one of the most important social revolutions of this century”

• Gerald Kaufman, then Labour shadow cabinet said the Act would "not provide a single new home and [would] deprive many homeless people or families living in tower blocks from getting suitable accommodation".

• The Labour Party was vehemently opposed to the Act but by the general election of 1987 had dropped its opposition to the Right to Buy.

Right to Buy

One of the first council houses sold under Margaret Thatcher’s Right To Buy scheme has been purchased for more than 20 times its original value.The neat terraced property of 39 Amersham Road in Harold Hill, near Romford in Essex, was first sold in 1980 to its council tenants for just over £8,000.Margaret Thatcher herself handed over the keys

Daily Telegraph April 2013

Right to buy

• Between 2004 and 2014 Brighton council got £9.4 million from the right to buy that it could have used on building new council houses

• Since then under the new system the Council has £10.3 m ring fenced for new council house building

Right to buy• Over 1.5 million homes have been lost to the

public through the right to buy

• The right to buy is being abolished in Scotland

• Since 1997 BHCC has built 15 new council houses (with over 200 now in the pipeline)

• It is claimed that one third of ex-council homes now owned by wealthy landlords

Public Sector Homes lost through Right to Buy in BHCC• Since 1997/8 1,342 council houses have been sold in Brighton under

the Right to Buy

• An average of around 80 each year

• 15 new council homes have been completed since 1997 with 200+ now in the pipeline

Empty properties

There are over 800,000 empty properties in the UK

“People are desperate for housing here in Brighton – please do something to stop

landlords keeping empty properties”

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SHOUT manifestoSocial Housing Under Threat

Propose 100,000 new council houses a year by lifting borrowing caps and increasing housing grant

http://www.4socialhousing.co.uk/

“Stop selling OUR housing please! Build more social housing!”

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The Clipped Wing Generation“Over half of working adults aged 20 – 34 who live at home with their parents (52%) are worried that this is holding them back from having an independent life. The majority (75%) of young adults living at home with their parents were working. Of the 2.62 million people aged 20 - 34 that were living at home with their parents at the time of the 2011 Census, nearly 2 million (1.97 million) of these were working”https://england.shelter.org.uk/__data/assets/pdf_file/0007/906820/2014_07_The_Clipped_Wing_Generation_FINAL.pdf

“My son and all his friends are now living with their ageing mothers are in their twenties

and unable to find affordable independent homes! All born and brought up in Brighton still

with parents. To MP - Our children in their twenties cannot afford private rents and have to

live with their mothers in their twenties.”

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Housing benefit costs

• Around £10 billion of public money goes to private landlords in housing benefit each year

• This sum could support borrowing to build 2 million new homes at a cost of £100,000 each

Poverty and private renting- the future• “Private rents are forecast to rise more rapidly than incomes over the

period (2008-2040) leading to 45-50% of private tenants living in poverty by 2040• “If social rents were to move towards 65 % of market levels, an

additional 1.3 – 1.5 million people could be placed in poverty by 2040”• “The likely increase in poverty is likely to be greater than these figures

imply because Housing Benefit is likely to be less generous in the future, and more people will be living in private rented housing” Joseph Rowntree

“Homelessness is increasing due to government acting only in the interest of the rich.

I myself have lived in a tent for 2 years”

Postcard comment

In Brighton and Hove 2013/14 • the govt. paid £112m in rent allowances for

private rented and HA Landlords

In 2015/16• Brighton and Hove’s entire council housing

investment was £41 million

Election Debate for Council Candidates• The next event will be a debate for prospective councillors to answer

your questions on what they will do if elected?

• Date - 29th April• Time - 7pm• Venue – Brighthelm Centre, Stanmer Room

Get Involved with the Living Rent Campaign

The next campaign meeting:Thursday 16th April 7pmUpstairs at The Southover PubSouthover StreetBrighton BN2 9UF

Before you leave tonight add your email address to our list and we will keep you updated. www.livingrent.org.uk

“We know you care for these issues and wish to signal our support for this campaign”

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