One of Labour’s activist groups is calling for a future government to ‘cough up’ £15bn over a decade to buy 500000 private rental properties.

The Fabian Society has just issued a somewhat lengthy policy statement saying…. “the government should introduce a locally led scheme to purchase 500000 private rental properties and turn them into social rented homes.

“This scheme should largely focus on purchasing homes that are empty, non-decent or energy inefficient (ie below EPC C). Local authorities and housing associations should have the right of first refusal to purchase any houses of multiple occupancy or ex-council houses sold under right to buy when they are being sold.

“The government should consider reforming tax reliefs or exemptions to encourage the sale of properties to local authorities and housing associations under this scheme, and to make it cheaper to refurbish these properties for example by removing or reducing VAT on energy efficiency improvements, for example.”

The policy statement also includes a demand that a future government must introduce its own private rented leasing scheme allowing private landlords leasing residential properties to local authorities for at least five years.

“It would improve access to affordable and good quality homes in the private rented sector, particularly for those in receipt of benefits, who are vulnerable, or at risk of homelessness.

“Risk for the landlord would be reduced as management of the properties would be put in the hands of local authorities which would also be responsible for providing additional tailored support and advice. Rent would be guaranteed for the landlord and payable at the level of the local area’s local housing allowance (LHA) rate with a management fee deducted which would be shared by the authorities involved.”

The group also supports other activists’ calls demanding “stronger renter protections and greater security of tenure.”

It wants Section 21 evictions to be scrapped and a “move to periodic tenancies with limited grounds for repossession.” If introduced it means that landlords will be stopped from evicting tenants within the first year of a new tenancy even if they wish to sell up or move into the property themselves.

It also calls for the period for eviction notices should become four months rather than the current two month timescale, and a new regulation that would permanently outlaw evictions form taking place over the winter.

On top of its wish list the group now wants landlords to provide a ‘relocation payment’ for renters who have to move out because of selling up or wishing to move back into the property or to house close family. If landlords increase rents above a future government percentage threshold  forces tenants to move out then the landlord should give them a relocation payment.

“These payments should be worth at least two months’ rent. Relocation payments will shift power to tenants, protecting them from landlords seeking to exploit unaffordable rent increases to circumvent security for tenants” says the society’s statement.

The Fabians also want all private rentals to be included on the property portal such as short term holiday lets and Airbnbs.

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See details of our CHG Guaranteed Rent Scheme here