Section 21 Evictions

Section 21 Evictions

31st October 2023



Section 21 allows “no fault” evictions, leading to family homelessness. While some landlords use it as a last resort, others misuse it for arbitrary evictions. The delay in the Renter’s Reform Bill could cause more pre-emptive evictions, especially during holidays. Both landlords and tenants need protection. The urgent need: end Section 21 evictions.


By Sue Edmonds

Section 21 is the largest cause of family homelessness. A family living in rented accommodation is given notice to leave with “no fault” – it’s not arrears, it’s not a breach of tenancy, it’s “no fault”, and they are now homeless as a result.

Section 21 is a double-edged sword used as a last resort – the nuclear option – by good landlords who have been pushed to the end of a difficult relationship with a tenant; there may have been continuous low-level issues, spikes of ASB, arrears accrued and then paid off before action is taken, sometimes for years, and a landlord may just want the tenant to move on. 

It’s sometimes quite difficult being a landlord.

However, Section 21 is used on a whim by unscrupulous landlords who don’t care about the tenant, they just want them gone, to raise the rent, to pause letting, to flip a property, or because the tenant complained about something that the landlord should have sorted but didn’t want to.

It’s sometimes quite difficult being a tenant.

Some good tenants have horrible stories about bad landlords… 

Some good landlords have horrible stories about bad tenants…

No matter what the reason Section 21 often means one thing – homelessness.

The second reading of the Renter’s Reform Bill this week saw the Government kick the idea of banning Section 21 evictions into the long grass of “the justice system needs to be fit for purpose”, an indefinite delay that will mean more families will experience homelessness.

As an organisation that works with landlords, and as a landlord ourselves, we know that there needs to be protection for landlords who want to safeguard their livelihood and their property. As an organisation that works to support tenants, we know there needs to be protection from arbitrary eviction. 

The bolstering of the guidance around evictions where arrears, breeches, ASB are present is welcomed. It gives landlords a clear roadmap, but there also needs to be a pragmatic approach to ensure good landlords aren’t punished, and good tenants aren’t disadvantaged.

The delay in banning Section 21 may have a more practical immediate knock-on though. 

There is an increased and immediate risk that landlords who are concerned about the uncertainty and the implications for them, or landlords who are confused by what is coming could use the nuclear option now as some sort of pre-emptive strike – resulting in tenants being evicted “just in case”, resulting in more households become homeless in the lead up to Christmas…

Section 21 evictions need to end now. We’ve been waiting too long.dmonds

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London rents hit a record high

London rents hit a record high

5th October 2023

The average London rent is at a record high of £2,627 per calendar month according to property site Rightmove.

John Rockley

Commenting on this figure, Daniel Thwaites, our Head of Housing and Property Income said “There is a huge affordability gap in London. The average household income in London is £2,868 per month – and that leaves Londoners with less than £250 a month for every other necessity. The system needs to change.”

Figures released in July this year from our co-commissioned Savills and LSE research found that only 2.3% of homes on Rightmove were advertised at LHA rates.

Amy Cowan, our Head of Acquisitions and Tenancy Sustainment said: “We know that the 2.3% figure is falling, and we can only see what homes are advertised at, not what the agreed rent is – and as BBC research suggests that up to 30 people are bidding on each home – the final rent is probably beyond LHA.”

To counter the market, we’re working with member boroughs to find better ways of supplying affordable housing to Londoners.

Amy went on to say “We are the change we want to see. We recognised that traditional affordable housing procurement was becoming more difficult, so, with the support of our members, we are offering ethical lettings, leases, management, and procurement.”

Daniel Thwaites added, “Landlords, big and small, want to positively affect society and the communities in which they live and work, and our approach means that they see great ESG returns as well as a robust financial result. We are a landlord in our own right, which means our expert team of housing and lettings professionals can take on lease arrangements at guaranteed rent, management contracts across properties, and broker traditional affordable housing straight to our member boroughs. Our unique approach means more affordable homes for our members as we cross-subsidise from our surpluses.”

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The state of Private Rented Sector (PRS) accommodation in London

The state of Private Rented Sector (PRS) accommodation in London

4th August 2023

The state of Private Rented Sector (PRS) Accommodation in London: Analysing Trends and Effective Solutions

Barbara Mettle-Olympio

The impact of the UK housing crisis is far-reaching, affecting individuals and communities across the nation, notably in London and the Southeast. London, housing almost two-thirds of England’s homeless households, has a homeless population equivalent to towns like Blackburn or Oxford, making it a crisis of national significance. Escalating housing costs, coupled with a scarcity of genuinely affordable homes and unsuitable accommodation, have placed a heavy burden on vulnerable individuals and families.

Adding to these challenges, London’s acute shortage of socially rented homes has led local boroughs to rely on the private rented sector (PRS), which now constitutes 30% of the city’s homes—10% higher than the national average. Yet, within the PRS, which is undergoing significant shifts, questions arise about the present state of supply and its potential impact on tenants.

A joint report by Savills and the London School of Economics titled “Supply of Private Rented Sector Accommodation in London” draws insights from platforms such as Zoopla and Rightmove, along with interviews featuring landlords and industry experts. This comprehensive study indicates a noticeable decline in the number of properties entering the rental market. This emerging trend has sparked discussions and raised concerns, including why landlords are progressively exiting the market, potentially leading to an overall reduction in the availability of rental properties.

Supply of Private Rented Sector Accommodation in London: Key Findings

  • Falling rental listings across all bedroom types, with significant declines in larger properties
  • More rented properties are being listed for sale, potentially impacting demand
  • Asking rents have surged by 20%, and the freeze in Local Housing Allowance (LHA) rates affects affordability
  • Tenant turnover has decreased with tenants staying longer in their rented properties due to limited vacant homes and restricted access to homeownership
  • New buy-to-let mortgages have reduced, and indication that more landlords have left the sector
  • Survey data also indicates that landlords are reducing their portfolios, especially in the lower market segments, impacting the most vulnerable tenants
  • Economic factors are increasing landlords’ costs, impacting lower-income households and local authority supply of properties
  • Amid rising costs and policy changes, landlords’ fears of non-payment of rent and property damage affect letting decisions

Supply of Private Rented Sector Accommodation in London: Recommendations

  • Urgent Review and Long-Term Strategy
    Conduct a cross-departmental review to analyse the impact of recent PRS policies and economic factors on supply. Develop a long-term PRS strategy to ensure an adequate supply of quality homes to meet demand.
  • Enhance Purchasing Power
    Increase Local Housing Allowance (LHA) rates to align with current market rents. Raise the Housing Benefit rebate for councils accommodating households in leased temporary accommodation. Rebase LHA rates to the 30th percentile of current market rents to enhance affordability.
  • Reduce Competition
    Implement agreements to limit competition between public sector bodies in the procurement of accommodations, preventing price inflation through procurement practices.
  • Incentivise Landlords
    Offer financial incentives for landlords to participate in the lower end of the market. Local authorities could provide financial support for property improvements and long-term lower-priced rentals. Consider national tax reliefs or incentives for landlords catering to the lower market segment.
  • Public Acquisition
    Enable local authorities to acquire properties leaving LHA or temporary accommodation sectors. Provide grants or capital funding for these acquisitions to ensure tenants can continue occupancy and maintain the property’s purpose.
  • Address Landlord Anxiety
    Promote networking channels for landlords to access factual information and insights. Establish a pan-London PRS network to develop joint initiatives and advocate for change. Enhance councils’ enforcement activities to reassure landlords about health and safety regulations.
  • Mitigate Fears
    Collaborate with local authorities and DWP to reduce landlord exposure to rent arrears and poor tenant behaviour. Promote deposit guarantee schemes and insurance products tailored for landlords.
  • Regulatory Costs Analysis
    Understand the impact of regulations on various landlord types. Assess the potential effects of the Renters Reform Bill on PRS supply and balance risk and reward for landlords while maintaining quality expectations.

In conclusion, the PRS fulfils diverse housing needs, often compensating for gaps in the property market. While local authorities and housing initiatives depend on a well-functioning PRS to address immediate housing demands, there’s a push for reduced reliance on this sector in the long term by certain tenant groups and housing charities due to ongoing affordability concerns.

The research findings have prompted recommendations for short-term interventions that could alleviate challenges faced by landlords, tenants, and local authorities, safeguarding access to PRS properties for vulnerable populations. However, it’s acknowledged that these recommendations, while essential, won’t fully tackle the complex factors and structural issues underlying the housing crisis.


Read the full report >

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Can repurposing commercial properties into residential homes help solve the UK housing crisis?

Can repurposing commercial properties into residential homes help solve the UK housing crisis?

28 July 2023



As the demand for housing continues to outpace the supply, addressing the crisis has become an urgent and complex task that requires innovative solutions and efforts from policymakers, developers, and communities alike.

Barbara Mettle-Olympio

With soaring property prices, a shortage of affordable housing, and rising interest rates and rental costs, the housing crisis has left countless individuals and families struggling to secure suitable and stable accommodation. This situation has also given rise to a host of challenges, including homelessness, overcrowding, and a widening wealth gap.

The All-Party Parliamentary Groups (APPGs) for Ending Homelessness and Housing Market and Housing Delivery have released the report titled Rethinking Commercial to Residential Conversions. This publication explores the idea of repurposing underutilised commercial properties into residential homes as a potential immediate solution to the crisis.

By examining the viability, challenges and benefits of such conversions, the report aims to offer new perspectives and strategies for addressing the pressing housing challenges in England.

Rethinking Commercial to Residential Conversions: Key findings and recommendations:

  • Commercial to residential conversions can play a vital role in expanding the housing supply
    The report highlights that commercial to residential conversions have the potential to make a substantial impact on increasing the housing supply. In England, an estimated 145,000 genuinely affordable homes are needed annually to combat homelessness, with 90,000 of them designated for social rent. Notably, vacant local authority buildings alone present an opportunity for the creation of approximately 20,000 new residential units through commercial to residential conversions. This underlines the significant contribution that such conversions can make in addressing the pressing need for affordable housing in the country.
  • Government should take immediate action to ensure the availability of affordable housing
    Immediate action by the government is crucial to ensure the accessibility of affordable housing. An essential step in this direction is to priorities the proposal by Vicky Ford MP in the Ten-Minute Rule Bill. The bill suggests empowering local authorities with the ability to mandate affordable housing contributions from conversion projects. Adopting this approach can accelerate the provision of affordable housing and secure a greater number of affordable homes in the near future. This proactive approach would significantly contribute to alleviating the housing crisis.
  • Introduce funding methods to incentivise conversions
    The APPGs advocate for the creation of a dedicated funding pool to facilitate the transformation of vacant commercial properties into residential spaces, with a focus on supporting not-for-profit and community-led organisations. This funding pot would serve as a strong incentive for the adoption of high-quality and collaborative strategies, while also supporting the implementation of pilot projects.

However:

  • Standards need to be strengthened to ensure conversion properties are of a high quality
    The report raises concerns about the substandard quality of conversions, which has been facilitated by Permitted Development rules (PDR), which allow modifications to properties without the requirement of full planning permission. It states that due to the implementation of PDR, numerous past conversions have fallen short of meeting the essential standards for comfortable and safe living conditions. Highlighting this issue, the report stresses the urgent need to strengthen regulations and elevate standards to ensure that conversion properties adhere to stringent criteria, promoting the provision of high-quality, habitable, and secure homes.
  • Local authorities also need to have greater input over where the conversions take place
    Granting local authorities greater influence in the decision-making process regarding the locations of conversions is crucial. Local authorities will take into consideration factors such as housing demand, existing infrastructure, and the potential impact on the local community, and thus ensure that conversions contribute to the holistic development and revitalization of their respective areas. This involvement will enable more informed and context-specific choices that will align with the overall goals of local communities and promote sustainable growth and regeneration.
  • Individual councils should have the ability to set affordable housing requirements to meet local need
    Recognising the regional variations and unique challenges in housing needs faced by local communities, it’s important to grant individual councils the authority to establish affordable housing requirements that align with local demand. This approach acknowledges that a one-size-fits-all solution may not effectively address the diverse housing challenges across different regions. By allowing councils to consider factors such as local income levels, housing market conditions, and population demographics, they can tailor affordable housing mandates to suit the specific needs of their communities, ensuring a more targeted and effective response to the pressing housing issues faced by individuals and families in different areas.

In conclusion, the report provides valuable perspectives on the complexities and possibilities of converting commercial properties into residential units. It also serves as a valuable resource for local authorities, policymakers, developers, investors, and communities striving to address the housing crisis through innovative solutions to meet the growing demand for residential accommodations.

Read the full report here APPG for Housing Market and Housing  Delivery and APPG  for Ending Homelessness

Read the full report >

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How can landlords help low-income families manage the rising cost of living?

woman child

How can landlords help low-income families manage the rising cost of living?

By Sue Coulson                                                                                                                                           31st March 2022

You know there’s a problem in the private rented sector when letting agents start talking about the unaffordability of properties for their prospective tenants. 

 

woman child

Agency chain Hamptons recently released research that sounded the alarm that households are about to be hit by ballooning energy bills and other cost of living increases. 

Generally, agents can be relied on to talk up the market to their clients. Could Hamptons be hinting to landlords that they should lower their expectations? The ongoing demand for properties in London suggests not. But perhaps we are nearing the limit of what tenants can afford.

Homeless charities have long highlighted the affordability gap for low-income families who spend a disproportionate amount of their household income on rent. Consumer champion Martin Lewis, the money-saving expert, has also sounded the alarm on the impact of rising energy bills and the cost of living.

Ironically, London renters may not feel the impact of bigger bills because their rent is already so high! In percentage terms, a jump in energy bills will have less impact on their overall cost of living. 

Nonetheless, London tenants are set to spend 55% of their household income on rent and bills in 2022. For households on very low incomes, paying over half your income on rent simply does not leave enough to live on.

As readers of this blog will know, councils are increasingly turning to selective licensing schemes in parts of their boroughs. They tend to licence areas with a high proportion of households claiming benefits so if your properties are in selective licence areas, your tenants are more likely to be affected.

So what can be done about the problem Hamptons has highlighted?

Capital Letters was set up to find private rented properties for people on the edge of affordability. These are the ones that councils have a legal duty to house such as families in temporary accommodation or facing homelessness. 

As demand for properties continues to outstrip supply, finding properties at LHA rates, the proxy for affordability, was already challenging. Nonetheless, many landlords have developed sound businesses by letting some or all their property portfolio to families claiming benefits.

Our one-stop service focuses on taking the hassle and risk out of letting to tenants in the benefits system. We offer landlords upfront incentive payments and help both landlords and tenants navigate the benefits system. 

We generally succeed in preventing tenancies from failing by ensuring benefits claims are completed correctly at the start of the tenancy and helping set up utilities and rent payments.

Looking ahead to a tough year for some tenants, more active support may be needed to help families on low incomes or benefits bridge the affordability gap. Our tenancy sustainment team already respond quickly to the warning signs of a tenancy in trouble. We will be even more alert in the current challenging environment.

Recent research by York University found that landlords letting to low-income families used active tenancy support to reduce the risk of arrears. Others recognised they did not have the time or skills, and use intermediaries such as Capital Letters to support tenancies.

We think that as affordability pressures increase on households on low incomes, some form of active tenancy support will become even more essential as the rising cost of living squeezes households.

Capital Letters is ready to help, but one way or another, landlords will have to find ways to support tenancies to ensure they are successful.

Sue Coulson is the chief executive of Capital Letters. Find out more about our support for landlords and tenants here: www.CapitalLetters.org.uk/landlords

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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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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. 

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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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Is “No DSS” Still a sign of the times?

Mother with boxes around her kneeling down and handing her young son a jumper

Is “no DSS” still a sign of the times?

By Sue Coulson

Overt “DSS” discrimination may be on the decline but landlord reluctance to let properties to households on benefits is still with us. We still have significant barriers to overcome before the private rented sector opens up enough to make a real difference to homeless families.

Several councils in London are reviewing their homelessness strategies. Although action plans differ, there is a shared recognition that the private rented sector is part of the solution to the homelessness crisis. Harrow council recently noted that DSS discrimination “remains a concern”.

Councils rely on landlords willing to let their properties to tenants claiming benefits. Capital Letters staff talk to hundreds of landlords and agents in London every month, and we meet plenty of misconceptions. Occasionally there is outright prejudice.

It’s over a year since a York court heard a landmark case about landlord discrimination against people claiming benefits. This finally set a legal precedent following a lengthy campaign by Shelter and others to stamp out “no DSS” discrimination.

Twelve months after York, Oxford city council voted to stop “no DSS” practices such as preventing tenants on benefits viewing affordable properties.

The cross-party motion – reported as a first for a council in England – stated that “DSS discrimination is one obstacle among many for those on benefits accessing housing”.

In fact, the York claim was upheld under the Equality Act because the claimant was a disabled mother. A blanket no ‘DSS’ policy falls unequally on women and disabled people, who are both more likely to claim benefits.

However, the legal precedent was set. Landlords and agents must now consider prospective tenants individually, not as a category. Respectable agents have removed DSS references from their websites, but less visible discrimination persists.

Councils need good access to the private rented sector to find suitable homes for families to put down roots and settle in their communities. And when councils discharge their legal duty to homeless people, they can also reduce their costs.

These costs are predicted to spiral as a result of lifting the eviction ban and ending the furlough scheme. No wonder many councils are signalling their desire to work with a more professionalised landlord sector that can guarantee housing quality and decent treatment of tenants.

Capital Letters was set up by councils in London to push the business case for landlords letting to tenants on benefits and to drive up standards. Oxford city council’s action has reminded us that we also have a role in challenging prejudice against people who simply need a good quality affordable home.

Sue Coulson is the Chief Executive Officer of Capital Letters.

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