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Newham Wants To Buy Out Landlords


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http://www.landlordtoday.co.uk/news_features/Local-authority-draws-up-plans-to-bulk-buy-private-rental-properties

A local council is considering buying up large swathes of private rental accommodation in a bid to crack down on unscrupulous landlords and offer longer, more secure tenancies.

It would then become the landlord itself of these properties, hoping to see rising capital values and good rental income.

If the plans comes off, Newham Council in London would effectively ‘nationalise’ the local private rented sector.

The authority wants to set up an investment vehicle to buy up poor-quality private rented sector properties. It could also use cash from institutional investors, including the council’s own pension fund. Currently, although local councils are having to make budget cuts, borrowing is cheap.

*IF*

the price is right - ie: very very low - then this is a good idea.

expecting rising capital values would be a foolish idea - you can only benefit by everything else getting more expensive too which would make housing in the area dearer.

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Surely they would be better off granting them self planning permission and building some new purpose build rentals otherwist it will cost them $ to get the properties up to scratch.

OR

These landlords are desperate to offload there crappy portfolios to there mates at the local council?

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Surely they would be better off granting them self planning permission and building some new purpose build rentals otherwist it will cost them $ to get the properties up to scratch.

in Newham? It is in the center of bleedin' London, one of the most densely developed parts of the UK. Doh.

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in Newham? It is in the center of bleedin' London, one of the most densely developed parts of the UK. Doh.

Also covers quite a bit of river frontage and along the A13. Room for quite a few high rise developments still I'd have thought,

However I guess they want to buy out local landlords, so that existing tenants stay in their homes, are better maintained, with more secure tenancies, rather that sh*tty AST.

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http://www.landlordtoday.co.uk/news_features/Local-authority-draws-up-plans-to-bulk-buy-private-rental-properties

A local council is considering buying up large swathes of private rental accommodation in a bid to crack down on unscrupulous landlords and offer longer, more secure tenancies.

It would then become the landlord itself of these properties, hoping to see rising capital values and good rental income.

If the plans comes off, Newham Council in London would effectively ‘nationalise’ the local private rented sector.

The authority wants to set up an investment vehicle to buy up poor-quality private rented sector properties. It could also use cash from institutional investors, including the council’s own pension fund. Currently, although local councils are having to make budget cuts, borrowing is cheap.

*IF*

the price is right - ie: very very low - then this is a good idea.

expecting rising capital values would be a foolish idea - you can only benefit by everything else getting more expensive too which would make housing in the area dearer.

Even if they overpay (which they will) it must surely work out cheaper over the long term to own the properties, rather than pouring frightening amounts of public money into LLs' pockets every year. HB rates on even the crappiest rentals anywhere in London are not exactly cheap.

It'd be interesting to know exactly how much Newham pours into private LLs' pockets each year.

Not sure how long it is since any local govt. thought over the long term, though, rather than just until they need to get re-elected.

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I don't know where Newham is exactly, but I guess the area will be hit hard by the cap on housing benefit.

I wonder what calculations are going through their heads ahead of time, and who will benefit? Can't think of anything that strikes me as just and fair.

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Even if they overpay (which they will) it must surely work out cheaper over the long term to own the properties, rather than pouring frightening amounts of public money into LLs' pockets every year. HB rates on even the crappiest rentals anywhere in London are not exactly cheap.

It'd be interesting to know exactly how much Newham pours into private LLs' pockets each year.

Not sure how long it is since any local govt. thought over the long term, though, rather than just until they need to get re-elected.

Is there no existing FOI request?

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I don't know where Newham is exactly, but I guess the area will be hit hard by the cap on housing benefit.

It's somewhere in London and mentioned in a run of Property Week stories I was intending to post up, but forgot to. A Property Week campaign called "Site Life" to find temporary uses for vacant sites and now with political backing. Especially sites those where new building works are scheduled to begin in 2+ years.

The competition began in November and is part of a £3.7bn Newham-wide masterplan, which includes a new town centre just north of the Canning Town "meanwhile" site.

The mayor of Newham, Sir Robin Wales, said: "Meanwhile London is adding another dimension to the transformation of Newham. London is moving east and there is huge potential here for investment, growth and greater prosperity."

Google cache Property Week story 11th March 2011.

Other "Site Life" example at Property Week.

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I don't know where Newham is exactly, but I guess the area will be hit hard by the cap on housing benefit.

But a good many LLs will have bought their properties before prices shot up and will be getting very good yields. Despite which some of them will not maintain or repair their properties to a reasonable standard. I can't understand why councils don't force them to. I have known one council (Nottingham) force the LL of a student let to make repairs - once involved they came down on her like a ton of bricks. (Mind you this was some yrs ago.) If council is paying the rent, the ton of bricks should surely be doubled.

Even since prices have been relatively high you still see on HUTH BTLers looking at a 9-10% yield - they never say it's HB rates but you can bet a lot of them are.

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I don't know where Newham is exactly, but I guess the area will be hit hard by the cap on housing benefit.

Newham is in East London - (west ham, canning town area). It's an area of high unemployment and single income families.

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The question that doesn't get asked, is why are the properties so run down and underinvested yet the rents and housing benefit are so big?

Indeed. In fact I thought that if properties weren't up to scratch councils can take them over and ultimately seize possession if the Landlord doesn't fix them (maybe I'm wrong on this). If this is the case why isn't the council doing this ?

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I wonder how many of their staff have a few BTLs.

Yes. With housing benefits coming down and unsaleable BTL 'portfolios' on their hands, landlords must be quite relieved at the idea of this new artificial demand hitting the market.

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You could not make this up! This is the complete opposite of Maggies 'right to buy'. :lol:

In all serious, I guarantee there is some backhanders going on at Newham as dilapidated and poorly run properties already have legislation for acquiring them already. This whole thing stinks of corruption!

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You could not make this up! This is the complete opposite of Maggies 'right to buy'. :lol:

In all serious, I guarantee there is some backhanders going on at Newham as dilapidated and poorly run properties already have legislation for acquiring them already. This whole thing stinks of corruption!

It is Newham after all,:rolleyes:

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Even if they overpay (which they will) it must surely work out cheaper over the long term to own the properties, rather than pouring frightening amounts of public money into LLs' pockets every year. HB rates on even the crappiest rentals anywhere in London are not exactly cheap.

It'd be interesting to know exactly how much Newham pours into private LLs' pockets each year.

Not sure how long it is since any local govt. thought over the long term, though, rather than just until they need to get re-elected.

Newham doesn't. Central government does. LHA is merely administered by local councils.

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Family member lives in Newham. He was interested by the garden party in the gazebo a few doors down when he first moved in, after a few days went past he realised that the gazebo was a permanent feature of the property, and was inhabited (could see telly glow emerging at night). Reckoned there were 10-15 people in a (nominally) 4 bedder.

Proper slumlord stuff, glad to say it was stopped eventually. People just need to report this stuff, and badger the council until they do something.

This latest plan is bonkers, mind.

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You could not make this up! This is the complete opposite of Maggies 'right to buy'. :lol:

In all serious, I guarantee there is some backhanders going on at Newham as dilapidated and poorly run properties already have legislation for acquiring them already. This whole thing stinks of corruption!

They have had massive corruption at Newham already. Insiders working for the council in cahoots with landlords to defraud housing benefit. Put it down to the great British multicultural experiment. Keeping it all in house would limit the scope for fraud (though I wouldn't bet on it).

A few weeks back visited my old stomping grounds in Newham, North Woolwich to be precise, and now noted the lines and lines of washing on the balconies of studio pads intended for junior banksters, with a predominance of asian women nattering into their mobiles. Think a lot of the new Docklands new build apartments will revert to social or semi-social.

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A few weeks back visited my old stomping grounds in Newham, North Woolwich to be precise, and now noted the lines and lines of washing on the balconies of studio pads intended for junior banksters, with a predominance of asian women nattering into their mobiles. Think a lot of the new Docklands new build apartments will revert to social or semi-social.

Is that the heartland of off-plan luxury apartments (a snip at £750k) now looking like slums (maybe £75k on the open market)?

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I lived in Newham and it is very mixed . I was on a newish development built in the Royal Docks and it was ok.

As the boom progressed I could not beleive the prices being paid for the housing in the parts of Newham that were not that nice.

I was told and I am not sure whether this is true or not, but the council and housing associations were buying up lots of property on the open market and paying the asking prices hence the rise in prices.

Looking back now anyone who invested in Docklands i.e. Canary Wharf , and the Surrounds has done well , but would have been better of buying cheaper older stuff in the crappy parts of Newham as £ for £ they have gone up more.

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