Another government failure brings a £1 Billion unprecedented repercussion!
A 1 Billion Pound unprecedented repercussion!
An article by inside housing examined the figures from 290 local authorities and calculated that last year alone, local councils’ temporary accommodation spend neared £1bn (£937m).
With this figure being reported as a 56% increase in just 5 years, we can’t help but think this is part of the repercussion resulting from years of chipping away at private landlords’ incomes, rights and support.
The pressure that the Government has placed on the sector has meant that more and more landlords are calling time on their rental properties and selling up. Or they’ve decided that they need to protect their shrinking incomes further by letting only to tenants with a glowing credit rating and putting an outright ban on DSS tenants.
This in turn has resulted in a simple supply and demand issue where there just aren’t enough rental properties to go around, especially for those on housing benefits. So, when councils can’t find an available council property, and there’s no private rentals to turn to, they have to fork out for B&B’s, hotels and guest houses to keep families off the street – to the tune of one Billion pounds.
Q – So, who pays for this money down the drain?
A – Every. Single. Tax. Payer!
All of us that go to work day in and day out to see nearly a third of our pay cheques disappear each month so that between us we can stump up £1bn for temporary accommodation that, in a parallel universe, with a foreword thinking Government, just wouldn’t have been needed.
Why has no one over the last 10 years stopped to consider the simple principle that if you put too much pressure on something it will crumble? And if the private rental sector and its Landlords begin to crumble then the most basic economic concept of supply and demand tips the wrong way.
Instead of making things difficult for Landords, the Government should be taking steps to make things easier than ever in recognition of the fact that without them, the system isn’t strong enough to support itself.
It’s not the only example of the Government not appreciating or understanding all of its stakeholders. The same is true in healthcare and education – if everyone pulled out of private healthcare or private schools, the state system would be flooded and broken. When will the Government begin to recognise and reward those that keep the country afloat?
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