1. ulster.ac.uk The challenges of the Private Rented Sector in meeting housing need: Paddy Gray, and Ursula Mc Anulty University of Ulster

2. Changing Perceptions of PRS Changing perceptions and attitudes towards the private rented sector, Very much like in GB where it is regarded as less of a residualised sector and more of a mainstream housing option. There has been a sizeable increase in the overall proportion of households living in the private rented sector. Mainly due to difficulties accessing the owner occupied sector and contracting levels of social housing The sector is becoming diverse, as it is home not just to low income households or wealthier apartment dwellers, but to more families, young people and children across a range of incomes.

3. Growing proportion of the stock right across the UK. In NI now greater proportion of overall stock that social housing sector = 17% (125k) Size of sector even larger if vacant PRS properties included: 142,000 (19.2%) High vacancy rate in the sector – 17,500 dwellings (12.3% compared to 5.9% in stock as a whole) But vacancy rate has  since 2006 (almost 15%), reflecting ongoing demand Across the UK it is expected to account for more than a third by 2032 Renting is Changing and is now becoming the new norm

4. Growth of PRS in N Ireland

5. Increased difficulties in accessing social housing and owner occupation Satisfaction levels are very high (88% in NI) Provides many benefits: open access, flexibility, greater chance of living in desired area of choice, choice of property type Younger people more likely to go there: Generation Rent More likely to attract those who may have been social housing tenants (60,000 HB cases) Those who can’t access owner occupation (decreasing in proportion of stock) Renting is Changing and is now becoming the new norm

6. Security of tenure v short term renting What is bad for landlords and tenants?

7. ‘Its like you are walking on eggshells. If you break a drawer in your kitchen you think… how much is that going to cost me?’ ‘I managed to squeeze a dog in, but the landlord wanted £75 per month extra to have a dog’ ‘you cant put nothing on the walls, he said. But we have.. because it looks nice.’ Shelter Focus Groups Sept 2012

8. To protect their investment and avoid difficulties with tenants Longer term tenancies and steady income streams through rental. Particularly those who have entered the market close to the price crash in 2007 and who rely on this to pay loans. Many are letting out small numbers of properties on a part time basis and they want their experience to be as simple and as hassle free as possible Most serious concerns that they have are finding good tenants, the size of letting agents fees and damage by tenants. Research has shown that majority of landlords are good but many are amateur What do landlords want?

9. In general 88% satisfied or very satisfied Higher proportion of 25-60 year olds living there since 2006 Worries about increased rents above a certain rate by agents or landlords. Some landlords may not increase for 3 years then bring it up to market rates which can be a shock. Social housing increases year on year so they know to expect this. Stability v lack of certainty Agent fees are increasingly a worry. This can be on top of a deposit and rent in advance How do private renters see it?

10. What are the barriers for more stable renting

11. Annual Gross Household Income (%) (2006 & 2012)

12. Age of Household Reference Person (%) (2006 & 2012

13. Tenure of previous home (2006 and 2012) (%)

14. Length of time in current and previous accommodation (2006 and 2012)

15. Total amount paid in advance for current accommodation (2006 and 2012)

16. Weekly rent of current accommodation (2012) (£) (%)

17. Weekly rent of current and previous accommodation (2006 and 2012) (£) (%)

18. Amount of shortfall respondent has to pay (2012) (£) (%)

19. Satisfaction with services provided by the landlord (2006 and 2012) (%)

20. Satisfaction with repairs and maintenance (2006 and 2012) (%)

21. ulster.ac.uk

22. Intend on staying in their current property for the next 5 years (2006 and 2012) (%)

23. Intend to stay in the PRS for the next 5 years (2006 and 2012) (%)

24. UU research: over a third of landlords (38%) had loan to value ratios of over 76% and a quarter had interest only mortgages. Negative equity? Headwinds like interest rates rising, welfare reforms, reverting from interest only to repayment, special deals running out? Research by Sheffield Hallem University for the DWP - by the end of 2013 44% of Landlords had been affected by arrears as a result of changes to the levels of Local Housing Allowance (LHA). 38% (high LTVs) amounts to 47,654 properties (HCS) If even half of these were to disinvest, or were repossessed, we could have a situation of over 20,000 households being threatened with homelessness. PRS: A Time Bomb Waiting to Explode?

25. Question - what will happen to tenants living with the uncertainty of losing their home if the landlord goes bust and banks repossess the home. It is unlikely that banks will continue to rent the property but will go for a quick sale to recoup part of their loss selling the property at auction at well below market value. If tenant becomes homeless but where do they go? It is unlikely they will be able to afford to buy if they have already been struggling to pay their rent. If awarded homeless status by NIHE they may have to move to an unfamiliar area without the community network they have built up in their existing location.

26. PRS: A Time Bomb Waiting to Explode?

27. The challenges PRS has in meeting housing need