|
|
Question Title: Letting to the local authority
| Question: 370 |
| I have heard that it is possible to let my property to the local authority. How do such schemes work?
|
| Answer: |
| The individual schemes are operated by both local housing authorities and housing associations. The one operated by our local authority is not untypical. A legal agreement is created whereby a landlord rents out their property to the Council, who then sub-lets to people in need of housing. Typically the local authority will sign a three or five year rent guaranteed contract with the landlord. These types of lettings have become increasingly common in the last couple of years to help fulfil the statutory housing obligations of the local authority to house people that are vulnerable (e.g. single parents), homeless, or those threatened with homelessness. The Government has observed that these types of lettings are better for tenants and better for the public purse than providing temporary housing through bed and breakfast accommodation. Often referred to as "Private Sector Leases" or PSLs, it is the Council that is responsible for paying the rent to the landlord and for managing the property. The property would be managed on a day-to-day basis by the Council. The landlord would have no direct dealings with the tenants. The most important things our local Council will do are: pay you rent quarterly in advance; take care of most internal repairs; make good any damage caused by the occupants, except for fair wear and tear (excluding decorations, carpets and curtains); and manage the property on a day-to-day basis. The Council may also be able to take care of some of the works required to bring the property up to its letting and safety standards. Despite the obvious attractions, there are some drawbacks to such schemes such as lower rents and increased maintenance charges plus some inevitable loss of control (compared with letting directly or letting through an agent) over what is effectively a valuable investment asset. The pros and cons of the schemes are discussed more fully in our special report on PSLs ('PRS LEASING.SAM') To find out more contact your local housing authority directly or on their website available through www.direct.gov.uk.
|
|
References:
|
Pages:
|
Hyperlinks:
|
For more information, discuss on the Forum
|
|
