Capital Letters welcomes renters reform white paper

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CAPITAL LETTERS WELCOMES RENTERS REFORM WHITE PAPER

 17th June 2022

family

Our statement about the Government white paper, A New Deal for Private Renters, published by the Department of Levelling Up, Housing and Communities on 16 June 2022. Sue Coulson, Chief Executive, said:

“Capital Letters welcomes the publication of the Fairer Private Rented Sector White Paper, which will lead to the end of no-fault evictions and finally make “no DSS” discrimination illegal.

“For too long vulnerable tenants at risk of homeless have been unfairly treated by a few bad landlords in the private rented sector. They have been prevented from renting simply because they are on low incomes and claim benefits. Or, when they do find a home, they do not feel secure in their home because of the threat of eviction if they complain about sub-standard accommodation.

“The white paper shows that the government is serious about ending the unfair treatment of tenants, and we look forward to supporting the development and implementation of the proposed new policies.

“We will continue to work with the majority of responsible landlords so more families can move out of temporary accommodation or avoid the stress of insecure or unsuitable accommodation by finding good quality homes in the private rented sector.”

Capital Letters was set up in response to London’s homelessness crisis. We find private rented properties so families can move out of temporary accommodation or avoid being made homeless. Capital Letters is owned by two-thirds of the councils in London and is funded by the government.

 

Sue Coulson

Sue Coulson

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Why we need more decent homes in the private rented sector

An old and dishevelled looking property with a semi broken door and weathered windows that have the paint peeling off

Why we need more decent homes in the private rented sector

By Sue Coulson                                                                                                                                           10th February 2022

The debate about who and where is being levelled up started in earnest when the Government published its white paper, including a pledge to get private rented houses in order. 

The government press release contained pledges related to the private rented sector, though we need to wait for another white paper on renters reform to see the detail. 

However we know enough to applaud the commitment to reducing the number of homes in the PRS that fail the decent homes standard. 

The proportion of PRS homes that don’t meet the standard halved over the last decade and the government has pledged to halve it again by 2030. This is good news. The landlord sector has done a lot to improve standards but the promised crackdown on bad landlords is necessary.  

Nearly a quarter of properties in the PRS do not meet the decent homes standard. Households receiving benefits who have fewer housing options are most likely to live in sub-standard homes. 

London councillors and parliamentarians have been quick to point out that levelling up isn’t a north-south issue. There are 165,000 Londoners in temporary accommodation, which accounts for two-thirds of the total in England. These households, many with children, need levelling up too, say a London Councils and London MPs. 

Capital Letters was created by councils in London to find private rented properties so families could move out of temporary accommodation. Finding properties at local housing allowance rates remains challenging as the privately rented market becomes more buoyant. 

The latest government homelessness figures released last week showed that the private rented sector is now providing housing for proportionally more families at risk of homelessness.  

The PRS has grown steadily over recent times; we need it to play a larger role in offering homes to families who are either in temporary accommodation or at risk of homelessness.  

In 2019, social housing accounted for about 60% of discharges of main duty by councils in London with that number already starting to fall before the pandemic. By autumn last year, less than half (46%) of discharges were to social housing, while the use of the PRS nearly doubled to about 30% of discharges of main duty. 

To meet the government’s objective of improving standards in the PRS while reducing the alarming numbers of people in temporary accommodation, particularly in London, requires collaboration with private landlords, councils and the government.  

The recent National Audit Office report on private renting concluded that government must do more to support local authorities determined to improve standards in their area. The next white paper will need show how this can be done, including the expected national landlord register. 

In fact, Capital Letters only accepts properties that meet the higher quality and safety criteria demanded of our member councils. We work with landlords who provide good quality properties – so families have a safe and secure home to put down roots. There just needs to be more of them. 

If you’re a London landlord, you can request a quote for the rent and incentive payment up to £4k payable on your property. 

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Safe properties equal peace of mind for everyone

A realtor or real estate appraiser inspecting a home

Safe properties equal peace of mind for everyone

2nd February 2022

Capital Letters works with councils in London to improve standards in the private rented sector. That works for landlords too, says Sue Coulson

A realtor or real estate appraiser

Is your property healthy and safe for tenants? Most landlords can honestly answer yes to that question. 

We work on behalf of two-thirds of the councils in London to find homes for low-income families. Councils need good, safe properties so these families can settle into their new homes. If a family moves into a property that is unsafe or unsuitable, they can soon end up back on the council’s housing list, which is also bad for landlords.

Our housing negotiators reject properties when landlords are unwilling or unable to carry out necessary safety improvements, such as fitting fire doors or window restrictors. But most landlords quickly sort out any issues highlighted by our inspections.

Anhar Ali, one of our newer landlords from Tower Hamlets, found the inspection was useful. “You have to keep tenants safe and make sure you are within the law,” he said. “I’ve learned a lot from Capital Letters about how to make sure my property is up to standard.”

Quality standards in the private rented sector have steadily improved over the last decade. The proportion of properties in England failing to meet the government’s decent homes standard has halved since 2010.

But there are still too many non-decent homes out there! The reputation of the private rented sector is undermined by properties that no one would live in if they had a choice. Sadly, people on the edge of homelessness do not.

As demand for affordable housing continues to rise, councils know that a partnership with the private rented sector is an essential part of their housing strategy. But they also want to ensure properties are safe and push up the quality of private rented properties in their area by requiring minimum room sizes, fire and other safety measures and natural light.

To support that goal, our housing negotiators are trained in the requirements of the Housing Health and Safety Rating System (HHSRS) when they inspect properties, which helps landlords comply with the 2004 Housing Act. 

Everyone agrees that HHSRS could be simpler. Following a consultation with landlords in 2019, the government is now reviewing the guidance. 

Gordon Hinchcliffe of Foundations UK is a long-time HHSRS expert who trained our negotiator team. He explains the government designed HHSRS so councils can take enforcement action against landlords who do not provide properties of a good enough standard and potentially put the health and safety of their tenants at risk

Most landlords we work with are relieved to have one of our negotiators deal with the detail of HHSRS for them. We see inspections as an opportunity to help landlords meet their legal obligations so they can confidently offer their tenants a safe and suitable property.

Why not book a free inspection with one our trained negotiators and we will connect you to families across London looking for a secure and settled home?

If you’re a London landlord, you can request a quote for the rent and incentive payment up to £4k payable on your property. 

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Is ESG investment a solution to the homelessness crisis? Find out what our expert panel concluded

Multiple people having a virtual meeting. CEO of Capital Letters Sue Coulson in the far left of the image with a quote underneath saying "This is an opportunity to build and find more homes that are refurbished"

Is ESG investment a solution to the homelessness crisis? Find out what our expert panel concluded

16th December 2021

Capital Letters and Inside Housing magazine brought together leading experts to discuss new investment models to increase housing supply and helping low-income families access the private rented sector. Find out what they concluded.

Demand for properties in London is growing strongly again, which is bad news for low-income families in temporary accommodation or at risk of being made homeless. That’s why Capital Letters has been developing a separate business to increase the supply of rented properties available to low-income families in London. 

We are in advanced talks with three property investment companies, including QSix, looking to develop long-term portfolios. Our business plan is based on around £1.5bn of investment over four years to create up to 4,000 additional rental properties at below-market and affordable rents.

By aggregating their future demand through Capital Letters, our member councils in London have created a single, simplified investment opportunity that will help to tackle the homelessness crisis head-on. Private capital investors are increasingly looking for investment with “environmental, social and governance” (ESG) returns.

Capital Letters sponsored a roundtable event hosted by Inside Housing magazine, which brought together leading local government, housing and investment figures to explore the potential of new public/private investment models to tackle the homeless crisis.

“I think that Capital Letters is potentially a game-changer by providing pan-London access for institutional capital,” said Ben Stirling, co-head of affordable housing at QSix.

Read the full report on the event here.

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Winner of the Capital Letters “What’s My Rent?” challenge announced

Winner of the 'Guess the Rent' game poses next to a wall with the logo of her company and behind her and her manager standing beside her

Winner of the Capital Letters “What’s My Rent?” challenge announced

9th December 2021

Thanks to everyone who entered the Capital Letters “What’s My Rent?” challenge at the ARLA Propertymark show on 7 December 2021. The data has been crunched and we have a winner!

Congratulations to Katie Aherne, senior lettings consultant at Austin Residential in Ruislip, London. She beat off stiff competition, including from her manager, to win a £100 Amazon voucher.

“I had a great day at the ARLA Propertymark show and this is the icing on the cake,” said Katie after finding out she had won. “The property is in an area I know well and the agency does good business there. So it’s good to know I have my finger on the pulse of the market there.”

Entrants were asked to estimate the rent on a property in Earl’s Crescent, Harrow, which was handy as Katie had good local knowledge of the area. She estimated the rent at £1550 pcm.

In fact, Capital Letters recently agreed rent of £1543 with a £4000 incentive payment for a two-year tenancy agreement. 

Susi Stevens, lettings manager at Austin Residential, said:

“I’m not surprised Katie was able to estimate the rent correctly and she even beaten me! She knows that patch very well and has a sharp eye for properties. Our landlords can be assured we know the local market.”

The average estimate for the rent by participants in the “What’s My Rent?” challenge was £1601, which was close to the actual rent of £1543. Exactly half the participants went higher and half lower. So collectively the participants were about bang on.

“We introduced a lot of agents to our free tenant finder service with incentive payments at the ARLA Propertymark show,” said Capital Letters area manager, Jinelle Gannon. “Although the challenge was a bit of fun, it does show the rents we are able to achieve will meet the expectations of many landlords.”

About Capital Letters

Capital Letters works in partnership with London councils and private landlords and agents to homes for families. 

Our free service gives landlords easy and efficient access to suitable tenants across London.  Hundreds of landlords and agents already find tenants through Capital Letters.  

To find out more about our free tenants finder service and incentive payments, go to www.CapitalLetters.org.uk/landlords or email info@CapitalLetters.org.uk

 

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Say yes to DSS – why landlords should let to families on benefits

A man looking at his young son on a scooter while he holds his daughter in one arm and a red primary school back on the other hand

Say yes to DSS – why landlords should let to families on benefits

By Sue Coulson                                                                                                                                29th November 2021

Are you blessed with long, trouble-free tenancies with no voids and an amazing agent? If the answer is yes, you may be hard to convince!

A shot of a father and two young sons walking down a path in residential area. The older boy is wearing his school uniform and riding on a push scooter. The younger boy is wearing casual clothing and is being carried by with father. 
The government press release contained pledges related to the private rented sector, though we need to wait for another white paper on renters reform to see the detail. 

However we know enough to applaud the commitment to reducing the number of homes in the PRS that fail the decent homes standard. 

The proportion of PRS homes that don’t meet the standard halved over the last decade and the government has pledged to halve it again by 2030. This is good news. The landlord sector has done a lot to improve standards but the promised crackdown on bad landlords is necessary.  

Nearly a quarter of properties in the PRS do not meet the decent homes standard. Households receiving benefits who have fewer housing options are most likely to live in sub-standard homes. 

London councillors and parliamentarians have been quick to point out that levelling up isn’t a north-south issue. There are 165,000 Londoners in temporary accommodation, which accounts for two-thirds of the total in England. These households, many with children, need levelling up too, say a London Councils and London MPs. 

Capital Letters was created by councils in London to find private rented properties so families could move out of temporary accommodation. Finding properties at local housing allowance rates remains challenging as the privately rented market becomes more buoyant. 

The latest government homelessness figures released last week showed that the private rented sector is now providing housing for proportionally more families at risk of homelessness.  

The PRS has grown steadily over recent times; we need it to play a larger role in offering homes to families who are either in temporary accommodation or at risk of homelessness.  

In 2019, social housing accounted for about 60% of discharges of main duty by councils in London with that number already starting to fall before the pandemic. By autumn last year, less than half (46%) of discharges were to social housing, while the use of the PRS nearly doubled to about 30% of discharges of main duty. 

To meet the government’s objective of improving standards in the PRS while reducing the alarming numbers of people in temporary accommodation, particularly in London, requires collaboration with private landlords, councils and the government.  

The recent National Audit Office report on private renting concluded that government must do more to support local authorities determined to improve standards in their area. The next white paper will need show how this can be done, including the expected national landlord register. 

In fact, Capital Letters only accepts properties that meet the higher quality and safety criteria demanded of our member councils. We work with landlords who provide good quality properties – so families have a safe and secure home to put down roots. There just needs to be more of them. 

If you’re a landlord, you can request a quote for the rent and incentive payment up to £4k payable on your property. 

More news and blogs

How tenancy support is reducing rent arrears for landlords

Mother and child walking towards a flat door

How tenancy support is reducing rent arrears for landlords

24th November 2021

Capital Letters deals with the benefits systems so you don’t have to, says Therisa Tidy, whose team has recovered over £700,000 this year 

 

Landlords letting their properties to families that receive benefits need to become experts in Universal Credit – or work with people who are. The benefits system is a regular payer once claims are set up but a change in circumstances can delay payments. 

We always advise landlords to be prepared for a delay in rent after a new tenant moves in while reassuring them that they will get paid. One east London landlord summed up the experience: 

“Normally payments start coming when they are due, but sometimes tenants cannot pursue their claims on their own. In this case, I asked Capital Letters to intervene so they could pursue this case professionally. Now the whole arrears have been cleared and I am very thankful to them for providing this service.” 

Some tenants may need help sorting out their claims. In a survey before the pandemic, 82% of landlords reported rent arrears after a new claim for Universal Credit or if the tenant had moved to Universal Credit (UC) from housing benefit. The number of people claiming UC has doubled during the pandemic and arrears in the private rented sector have increased, according to the latest government figures. 

But not every landlord signed up to become an expert in the benefits system! So what are their alternatives? 

Capital Letters works with landlords and two-thirds of the councils in London to find private rented properties so families can move out of temporary accommodation. Tenants sign an AST agreement with the landlord and Capital Letters pays a non-returnable cash incentive when the property is let.  

But the service doesn’t end there. Capital Letters has over 25 tenancy sustainment advisors who help tenants and landlords sort any problems throughout the tenancy. This year our team has secured a total of £773,000 in back-dated payments – most of which went straight to the landlord. Tenancy sustainment advisor Waheed recently secured nearly £10,000 for a landlord after arrears built up over six months.  

“The landlord called us because the tenant couldn’t deal with the stress of making the claim,” says Waheed. “Sometimes when the landlord comes knocking, the tenant doesn’t know how to answer.”

In fact, these long-running cases are unusual. Our team usually finds a solution before the landlord even knew the tenant needed help.

“Using our knowledge of the benefits system, we sort out claims so payment can start within weeks of the tenant moving in,” says Omolere, another advisor. “By responding quickly, we can usually prevent any arrears building up.”  

So what are the advantages of working with Capital Letters? Firstly, we make the process easy. We can help with claims for direct rent payments, which gives landlords peace of mind. Finally, as Omolere and Waheed explained, we make sure Universal Credit applications are set up correctly, minimising arrears. 

Therisa Tidy is a tenancy sustainment service manager. Let Capital Letters find your next tenant and receive cash payment. Please contact us on info@CapitalLetters.org.uk or 020 3906 7460.

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Capital Letters is making a difference to homelessness in London, finds independent review

Mother helping her two young daughters at the kitchen table as they eat

Capital Letters is making a difference to homelessness in London, finds independent review

11th November 2021

There is growing evidence that Capital Letters is making a positive impact on homelessness, according to an independent review by LSE London.

Capital Letters was set up in 2019 by a group of London councils to enable more families to access affordable homes in the private rented sector (PRS). The councils have pooled their property procurement capacity, and Capital Letters now has 21 members covering two-thirds of the boroughs in London. 

By August 2021, Capital Letters had offered over 7500 properties to London councils since its launch and the LSE report notes that the pace of procurement had increased significantly over the last six months.  

Two-thirds (67%) of families renting through Capital Letters were housed in-borough, compared to 41% for London as a whole, according to the latest Inter-Borough Accommodation Agreement figures. 

Capital Letters works with private landlords in London to find properties at local housing allowance (LHA) rates so families can move out of temporary accommodation or avoid homelessness. It also provides a tenancy sustainment service once the property is let to support both tenants and landlords to ensure the tenancy is successful. As a non-profit company, Capital Letters was set up to disrupt the private rental market and increase access to good quality PRS homes for families on benefits.  

“The potential for increasing the proportion of households who can be offered an assured shorthold tenancy (AST) in this way is clearly a major reason for Capital Letters’ existence. Its progress especially over the last six months suggests that the potential benefits are increasingly being realised,” conclude the LSE team, led by housing economics expert, Professor Christine Whitehead. 

The LSE report highlights a potential saving of £4,000 per property over two years compared to the costs of housing a family in temporary accommodation.  

“The more boroughs that become active members, the more value comes from the pan-London agreements on standardised incentive payments to landlords and on quality standards. In addition, a reduction in inter-borough competition strengthens Capital Letters’ capacity to negotiate, reduces costs and increases supply.” 

As well as finding properties for boroughs, Capital Letters also offers a tenancy sustainment service to both families and landlords, including help with benefit claims and maximising household income to improve affordability. By the end of August, the company has secured over £650,000 in benefits and grants for families since the start of 2021. 

Capital Letters evaluates the success of the tenancy sustainment service through two key measures: the income accessed on behalf of families, and the number of tenancies maintained.  

“The numbers of evictions are tiny in relation to the number of tenancies created, although there is a recognition that numbers may increase as the eviction pause is lifted over time,” says the report. “Positive feedback from landlords provides further justification for the team’s activities.” 

Of the 400 tenants housed through Capital Letters who are nearing the end of their two-year AST, so far only six were identified as at risk of eviction in the LSE report. 

Jackie Odunoye, Chair of the Capital Letters board, said: 

“Despite the impact of Covid on the private rented market in London, this review shows that Capital Letters is making a real positive difference to families at risk of homelessness with more able to find secure and settled homes.  

“We are determined to increase significantly the number of properties we offer our member councils and provide support to families and landlords to ensure the tenancy is a success.” 

Cllr Darren Rodwell, London Councils’ Executive Member for Housing & Planning, said:  

“Capital Letters is a key part of the boroughs’ pan-London approach. Through working together, we are strengthening our market position and securing better housing options for homeless households. But we’re always determined to learn and adapt depending on what works best, and this report will certainly be useful for guiding the future development of Capital Letters and our joint efforts.” 

Laurence Coaker, head of housing needs at Brent Council and a member of the Capital Letters board, said:  

“The LSE report highlights that the jewel in the crown of Capital Letters is the tenancy sustainment service which supports both tenants and landlords – something that no other service provider does. This is key to persuading landlords to let to tenants on low incomes.” 

Mark Meehan, chief housing officer at Hammersmith and Fulham council and chair of the pan-London needs and homeless group, said: 

“Homelessness is predicted to get worse in London, particularly for families, as the impact of the Covid pandemic and the eviction pause is realised. Last year we showed what we can achieve when London councils work together and now this report evidences that our partnership led by Capital Letters has improved outcomes for homeless families.” 

Jeff Crudgington of Cot Estates, which has let over 60 properties through Capital Letters, said:  

“We work with Capital Letters whenever we can because it’s easier and we have access to tenants across London. We have developed our LHA-rate letting service because Capital Letters has made it possible and they are having a real impact on this part of the market.” 

DOWNLOAD THE FULL REPORT HERE.  

Notes 

  • The London School of Economics established LSE London as a centre of research excellence on the economic and social issues of the London region, including housing, finance and governance. LSE London was commissioned to produce an independent evaluation of Capital Letters after its first 18 months of operation.  
  • Capital Letters was set up with support by London Councils to improve collaboration between boroughs and reduce competition for properties. The government funds Capital Letters as part of its commitment to reducing homelessness via the Department for Levelling Up, Housing and Communities. 
  • The following London boroughs are members of Capital Letters: Barking & Dagenham; Brent; Camden; Croydon; Ealing; Enfield; Hackney; Hammersmith & Fulham; Haringey; Harrow; Havering; Lewisham; Newham; Redbridge; Tower Hamlets; Waltham Forest and Westminster. Greenwich and Merton are the latest councils to join and are currently onboarding. Bexley and Southwark are full members but not currently active.  

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Nurturing networks to tackle homelessness

Image of Zoom call between former homeless person and the UK Minister for Homelessness

Nurturing networks to tackle homelessness

By Sue Coulson                                                                                                                                                   18th May 2021

I have been thinking a lot about the importance of networks in tackling homelessness. Resilience was the theme of an absorbing series of debates hosted by the Centre for Homelessness Impact this week.

 

The events certainly had an impact, not least because we heard from people with lived experience of homelessness.

Kirsty described in uncomfortable detail the reality of living with children in a women’s refuge, surrounded by the effects of trauma and poor mental health. We also heard powerful testimony from Jade, who became unexpectedly homeless after losing her job during the pandemic. She found her support network of friends was out of reach in lockdown.

“I would have used Google to find what services were available, but without a charged phone I didn’t know where to look,” she said, referring to that other kind of network that we all rely on.

Having shared her story, Jade got the chance to question the homelessness minister, Eddie Hughes MP. With remarkable poise, she challenged him to improve access for homeless young people with no experience of public services.

What we need, said the minister, drawing on his own experience of working at a YMCA, is intensive support and not one-off interventions. “Some people we are working with are having some real difficulties, and sometimes they demand and need our patience and understanding.”

Absolutely! I am so reassured to hear this from the minister. We know from our experience of working with private landlords in London is that families need ongoing support if the tenancy is going to be a success.

Our job is to ensure families can put down roots and have their support network around them, and their children can carry on going to school. Talking about resilience this week made me realise more than ever that tackling homelessness means so much more than finding a house. We need the partnerships, relationships and collaboration to enable people develop effective support networks while ensuring housing decisions do not damage the networks they already have so these houses become homes.

Just ask Jade or Kirsty

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