Councillors in Hartlepool say urgent action is needed to tackle a growing housing crisis fuelled by the profiteering of some private landlords.
They are calling for measures to end speculative purchases where properties are bought in bulk and converted into buy-to-let rentals or houses in multiple occupation (HMOs).
This, say councillors, contributes to fragmented, unstable neighbourhoods where local first-time buyers and low-income families are often priced out of the housing market.
At a meeting on Thursday 2nd October, Full Council voted in favour of a motion calling for change.
As a result, a letter is to be sent to the Secretary of State for Housing, Communities and Local Government.
Councillor Karen Oliver, Chair of the Neighbourhood Services Committee, said: “This is not about demonising the private rental sector which does have a role to play in the housing market, but rather all about raising standards.
“We are calling for urgent Government action because we do not believe that the private rental housing market can currently be relied upon to meet the housing needs of our communities in a fair and equitable manner.
“Former council homes continue to be lost to the private sector, reducing the availability of secure, affordable housing for future generations. Housing benefit payments to private landlords also frequently exceed the long-term cost of building new social housing, but without delivering lasting public value.
“Local authorities currently lack the legal and financial tools to prevent speculative property purchases, limit buy-to-let concentrations or repurchase homes at the scale needed.”
The Council is calling on the Government to introduce housing reforms that include:
- A property speculation levy on investors buying residential properties in areas of high deprivation or housing need.
- Changes to Right to Buy rules to give local authorities first refusal on ex-council homes before they are sold on the open market.
- Local caps on buy-to-let properties to allow councils to preserve housing mix and community cohesion.
- Strengthened compulsory purchase powers for councils to acquire sub-standard or harmful properties.
The Council which is currently consulting on the introduction of an Article 4 Direction that, if confirmed, will prevent the conversion of standard houses into small HMOs without planning permission, intends to explore the feasibility of local initiatives – within existing powers – to mitigate the negative impact of housing speculation.
It is also proposing to work with other local authorities and regional partners to form a coalition to advocate for fair housing reforms and stronger local powers.