Checkmate for the housing sector's white knight?

The government's plans to limit the development of shared residential property will leave the UK's housing supply in "desperate straits", critics claim.

Plans to give councils more control over the development of shared housing in their area have caused controversy among some industry groups, with one claiming the move will be checkmate for the "white knight" of housing supply, the private rented sector.

Housing minister John Healey unveiled the proposals, which would require residential property landlords to apply for planning permission before they could turn a family home into a house in multiple occupation, or HMO, following a consultation that attracted around 900 responses from councils, residents' associations, universities, MPs, campaign groups and individuals.
Mr. Healey said the draft changes to the planning rules, as well as a proposal to allow councils to introduce licensing schemes in "hotspot" areas where HMO owners have not been managing properties properly or keeping up with necessary home improvements, will result in better standards for tenants while ensuring the worst landlords cannot "drag down" good neighbourhoods.

"Councils know their communities and are best placed to help tenants facing landlords who rent unsafe or substandard accommodation and take little responsibility for the problems caused for neighbours," he commented.

But for some, the proposals could ultimately restrict the supply of private rented housing at a time when demand for accommodation is high and funding for builders to construct new residences is drying up.
Earlier this week, the British Property Federation (BPF) went so far as to say private landlords represent the "only way" for the UK to bridge the gap between supply and demand.
However, BPF director of policy Ian Fletcher said support for the sector from the government has been "worryingly muted".

The National Approved Letting Scheme (NALS), which provides accreditation for letting and management agents to help both landlords and tenants, backed the BPF's findings.

A spokesman for the organisation said the private rented sector has been the "white knight" in terms of meeting housing supply ever since the right to buy was introduced in the 1980s.
This caused a severe shortage of local authority properties and housing associations have "struggled to fill the gap", he added.

With the cost of home ownership still on the rise, it remains difficult for young people in particular to get on the property ladder and, according to the National Landlords Association, HMOs are a vital source of affordable accommodation for young professionals, as well as those on low incomes.

The government hopes to enact legislation to bring the new rules on HMOs in by April this year. Getting the right balance between supporting private landlords and cracking down on irresponsible property owners will be crucial.

As the NALS puts it: "Without the private rental sector, we would be in desperate straits."