ROOF Blog

Tenants living in social housing would be able to benefit from a national house-swap scheme planned by the Conservatives, Grant Shapps, the shadow housing minister, said today.

He told the National Housing Federation conference that the Tories wanted to make it as easy for social tenants to move as it is for people living in private housing.

Under the current arrangements, social tenants are four times less likely to move than people who rent privately.

‘If you are a social tenant, you don’t have the same opportunities as other renters or home-owners. The system means that your aspirations are squeezed, your expectations lowered, and your horizons are limited,’ Mr Shapps said.

‘Today I can announce that a future Conservative government will facilitate a nationwide affordable-house-swap programme.

‘We will introduce an open database connectivity platform to ensure that – for the first time ever – every family in social housing will have the chance to relocate by exchanging their home for another one, anywhere in the country.’

Shelter is calling for greater tax breaks for householders who rent a room to lodgers, because the tax threshold – the amount a person can receive in income before paying tax – is so low it puts people off from offering a room to potential renters.

The present threshold of £4,250 hasn’t changed since it was set in 1997, despite rent rises of more than 110 per cent since then.

But Shelter believes many more homeowners, especially those struggling with mortgage costs, would rent out a room if they didn’t have to worry about tax repercussions.

Shelter director of policy and campaigns Kay Boycott said:

‘In the current economic climate, many homeowners are battling to meet their mortgage payments and many are looking for options to maximise their income.

‘If the rent-a-room threshold was higher and the scheme better publicised, it could prove a real incentive for people to take in a lodger, and the take up of rent-a-room opportunities could increase.’

Shelter is calling for the threshold to be raised to £9,000 a year to reflect rising rents, which would cost the Treasury around £5 million per annum, plus a publicity drive to ensure greater take up of the scheme.

Struggling buy-to-let landlords are eating humble pie when it comes to finding tenants.

Checks and references traditionally carried out on tenants to assess their reliability in paying up are now being reversed as renters seek assurances the owner of their new home is legitimate and not on the verge of being repossessed.

David Underwood, a lettings consultant at Darwoods in St Albans, Herts, has noticed a ‘marked shift’ in emphasis:

‘Tenants have been far more interested in landlords’ backgrounds and are asking more questions about where their deposit is being held,’ he says.

It would seem that tenants’ concerns are well founded. When the Council of Mortgage Lenders (CML) started compiling buy-to-let data in the second half of 2005, only 200 investment properties were in mortgage arrears of three months or more.

By the first half of this year, this had soared to 5,400. Repossessions of investment homes also climbed, from 400 to 2,800, during the same period.