3 September 2014
With the sustained upward pressure on property prices even the Governmentâ€™s Help to Buy Scheme isnâ€™t enough to get everybody on the housing ladder. For millions of people there is no hope of ever achieving the Thatcherite Utopia of a home owning society.
For many the wage/purchase price gap is simply too high. For others mortgage eligibility is limited due to insecure work contracts or self employment and many are happy to have the flexibility that home ownership cannot offer.
Like it or not, the rental market is here to stay. So isnâ€™t it time it cleaned itâ€™s act up?
The last serious piece of legislation in the private rental sector was over 20 years ago when Assured Shorthold Tenancies were created, opening up the market to a new generation tenants and buy to let landlords. And it worked pretty well for many years. The supply of property increased and rents remained fairly constant.
But following the credit crunch many people found themselves unable to find a mortgage. This has eased lately but increased prices have compounded the problem. Cue rising rents and tenants having to accept high fees and poor quality housing.
There are a few things that could be done as soon as possible to allow more people access to a decent home. These include;
Some simple carrot not stick ideas could even out the unfair two tier system we currently have.