Steep rise in the number of buy-to-let mortgages going into arrears — Transcript

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1. 0:00it is indeed more bad news for renters
2. 0:03because property professionals at the
3. 0:05Royal chartered Institute of surveyors
4. 0:07expect rents to rise again in the next
5. 0:11three months and that is the last thing
6. 0:13that renters want to hear so let's put
7. 0:16this into some context look at this this
8. 0:18is for England only and shows the the
9. 0:20chunk of your income spent on housing if
10. 0:23you have a mortgage about 22 but now
11. 0:28let's bring in renters way bigger chunk
12. 0:32of income going on housing if you are
13. 0:34renting about 33 or a third of your
14. 0:38earnings these numbers take us up to
15. 0:40last year before the latest Extremes in
16. 0:43the rental and mortgage markets so it's
17. 0:45likely actually in situations even more
18. 0:47eye-watering now so renters get stuck
19. 0:51renting because they're spending so much
20. 0:53of their money on rent and today's data
21. 0:56shows that demand for rentals is indeed
22. 1:00Sky High look there's the demand but
23. 1:03where are they going to live these
24. 1:05people look at what's happening to new
25. 1:07landlord instructions the red line here
26. 1:09a key indicator of Supply well clearly
27. 1:13when demand outstrips Supply like this
28. 1:16it's usually the power is with the
29. 1:18people who set the prices the landlords
30. 1:21so no wonder Matt that rents are set to
31. 1:24Rice Kieran thanks very much indeed but
32. 1:27joining me now is probably need the
33. 1:28chief executive of Housing and homeless
34. 1:31charity
35. 1:32shelter uh welcome to the program Polly
36. 1:34I mean these are pretty dismal numbers
37. 1:35aren't they but let's start with the
38. 1:37case of Cairo whitmell
39. 1:39um which was uh which we had earlier
40. 1:41thanks to Amelia Jen and the fact that
41. 1:44you know she has not been able to find
42. 1:46housing for a year
43. 1:48stuck in hospital for a year
44. 1:52um and the councilors now apologize for
45. 1:54this but the government is blaming the
46. 1:56council and it's not taking any
47. 1:58responsibility itself of course you make
48. 1:59it up
49. 2:01no well I mean what we're seeing here is
50. 2:04the impact now you know the situation in
51. 2:07housing in this country has become such
52. 2:10a catastrophe that we're now seeing how
53. 2:13it's impacting the NHS
54. 2:15um where you've got you know a child
55. 2:17homeless in hospital I mean and and you
56. 2:21know
57. 2:22we're seeing um many many people with
58. 2:26long-term illnesses with mental health
59. 2:28issues and with disabilities who are
60. 2:31homeless and in temporary accommodation
61. 2:33as well actually more than half of
62. 2:35people in temporary accommodation have
63. 2:38an illness or a mental health issue or a
64. 2:40disability so we're seeing a housing
65. 2:43system that is in absolute meltdown and
66. 2:46then that in turn is impacting on the
67. 2:48NHS which as we know is already severely
68. 2:51overburdened and has its own crisis and
69. 2:54and that's before you even get into
70. 2:55talking about the unaffordability crisis
71. 2:58in private renting that you were just
72. 3:00talking about just then sure but when
73. 3:02feeds into the other now the waiting
74. 3:04list for socializing of 1.2 million is
75. 3:06that unprecedented
76. 3:09it is um getting higher all the time yes
77. 3:12and I mean frankly until the government
78. 3:15starts investing in building social
79. 3:17housing this issue can only get worse
80. 3:20um there are people in private renting
81. 3:22it's increasingly unaffordable people
82. 3:24cannot afford it they desperately need
83. 3:26social homes you've got people like Paul
84. 3:28Kyra and her family who desperately need
85. 3:30social homes you've got 1.2 million on
86. 3:33the waiting list and rising and we are
87. 3:36just not seeing the political will I'm
88. 3:38afraid to solve this crisis we really do
89. 3:42need some significant change and it's
90. 3:45urgent because you know
91. 3:48on every side I guess the housing system
92. 3:51now is in meltdown everywhere you look
93. 3:54it's getting worse but is is the thing
94. 3:57that is most to blame here the state of
95. 3:59the market
96. 4:02the thing that's most to blame is
97. 4:04Decades of failure to invest in social
98. 4:07housing so we're actually going
99. 4:09backwards every year in terms of
100. 4:11delivery of new social homes that's the
101. 4:14main thing then you've also that is
102. 4:16feeding the affordability crisis and the
103. 4:19level of demand at the bottom end of the
104. 4:21private renting Market of course then
105. 4:23you've got the issue of interest rates
106. 4:27and mortgages Rising which in turn gets
107. 4:29passed on to renters and that then also
108. 4:32feeds what you were referring to earlier
109. 4:34which is the dramatic increase in the
110. 4:36cost of private renting so that's
111. 4:39another issue and of course that isn't
112. 4:42helped by the fact that housing benefits
113. 4:45which is intended to make up the
114. 4:47difference between people's incomes and
115. 4:49the cost of their rent isn't making up
116. 4:51that difference anymore so that in turn
117. 4:53is also feeding homelessness so we've
118. 4:56got people homeless in hospital we've
119. 4:57got people at home pretty visible
120. 4:59accommodations across the board then
121. 5:01isn't it and there's not much we can do
122. 5:02about interest rates but is there a
123. 5:04short-term fix is there a short-term fix
124. 5:07to any of this
125. 5:10um yeah I mean the government needs to
126. 5:12unfreeze housing benefit uh definitely
127. 5:15so that it does actually bridge the gap
128. 5:18because until we start building homes
129. 5:20that people on low incomes can actually
130. 5:22afford to live in the only other way to
131. 5:24resolve that issue is to help people's
132. 5:27incomes so that they can afford their
133. 5:29rent so that's one thing that needs to
134. 5:31happen the government needs to bring
135. 5:33forward its renters Reform Bill which
136. 5:35has been promised for years and we
137. 5:36didn't actually see the second reading
138. 5:38before recess which you know is a yet
139. 5:40another delay to a bill that's been
140. 5:42promised for quite some time but there's
141. 5:44no getting away from it I don't want to
142. 5:46sound like a broken record but the
143. 5:47government has got to build social
144. 5:49housing okay all right gonna leave it
145. 5:52there Pauline thank you very much indeed