More social than private tenants will be evicted due to COVID19 eviction ban

More tenants in social housing will be evicted than tenants in private rented housing.  This 2 minute read explains why.

Notice-of-Eviction

Imagine you are a Housing Finance Director for a council or housing association and arrears have gone through the roof due to COVID19.  Thank God for the affordable rent scheme you think as we can evict as many existing tenants paying the social rent level and easily replace them with a new tenant paying the affordable rent level the very next week and which averages 47% more in rent across England.

You also silently pray and give thanks to the Conservative Party for allowing this SR to AR conversion process which every social (sic) landlord can do freely and without any scrutiny as the 200,000 to date conversions have proved.  Your only regret is that you are a Housing Finance Director with housing in an average rent area and so you will only get the 47% uplift in rent.  Oh why couldn’t I work in London say for Clarion Housing Association in Bromley where a 2 bed social rent of £112 per week converts to an affordable rent of £335 per week which the official figures show for 2018/19.

Still you have an easy route now and had long before the COVID19 contagion, a massive financial incentive with the AR conversion process to evict the existing tenant paying the social rent level so you can replace the next week in the exact same property and get 47% more in rent!

You are also smiling inwardly as the end of the 3-month eviction ban sees the typical focus on the proverbially nasty private landlord as the only ones who will evict when you know it is highly likely that the ‘social’ landlord will evict far more than the private landlord due to this average 47% rent increase the AR conversion process allows.

You also smile at the fact the COVID19 eviction ban will have a seismic change on how social landlords allocate properties and you can cherry pick the better more financially sound new tenant at will and who will jump at the chance of the additional security of tenure you can give to the former private sector tenant who will now be giving your bottom line an average 47% more in income.

Yes life is very good for the Housing Finance Directors due to COVID19 and the increase in arrears it brings is very much a short-term issue and will be more than mitigated in a very short period with the AR conversion policy.

It’s Monday 31 May and you scan the housing and national media and note the Chartered Institute of Housing has published a COVID19 recovery plan and which does not say a single word about the SR to AR conversion process in its claimed solutions. How much you enjoyed reading Machiavelli’s Il Principe during the lockdown while clearly the CIH PR team were heavily engrossed in Aristophanes you ponder.

How lucky we are to have 50 years of housing thought which has the central theme of nasty private landlord versus beneficent social landlord being the norm.  Just imagine if the private landlord could have a guaranteed replacement tenant paying 47% more than the existing one and what they would do!  The public would have no doubt the private landlord would evict for this huge financial reward yet they ridiculously believe that ‘social’ landlords won’t do this!  Talk about having their head in the Clouds … but enough of Aristophanes!

Conclusion

Council and housing association landlords WILL evict more tenants than private landlords do as a result of COVID19.  These social (sic) rented sector or SRS landlords have a massive financial incentive to evict and an incentive that is NOT available to the private landlord. 

While the Conservative government policy is still to allow the affordable (sic) rent regime this offensive and systemic incentive to evict the tenant paying the social rent level will see social tenants evicted in huge numbers and record numbers after the end of the eviction ban and many more than by the ‘nasty’ private landlord. 

 

 

 

 

4 thoughts on “More social than private tenants will be evicted due to COVID19 eviction ban

  1. Why haven’t All Social Housing converted their tenants over onto AR ? Why do they have to evict them to convert onto AR, or is it because it can only be done on new tenancies ?

    Like

  2. Hi there.
    I can see the clear financial incentive, but I think the argument could do with some data to back up the claim that the social sector will evict more than the private. I understand this is usually the case anyway, but if I wrote this argument in an article I think the link between financial incentive for SR and the number of SR evictions compared to PRS evictions would need more corroboration.

    Liked by 1 person

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s