A council in London has launched its own letting agency, claiming it is the first initiative of its kind in the capital.
The agency will target tenants who do not qualify for a council house but who struggle to pay private rents. The tenants will not be charged any agency fees.
Landlords will be invited to hand their properties to the council’s not-for-profit agency for management. It will find the tenants and guarantee the rent.
It will only take properties from landlords approved by the London Landlord Accreditation Scheme.
Last week, Hackney Council authorised the scheme, which it said is made possible by the Localism Act.
A pilot scheme is due to launch in the New Year and be rolled out in full in the summer.
Cllr Karen Alcock, Hackney Council cabinet member for property and housing policy, said: “Hackney is a place where some rents are going up considerably, and what the council is trying to do is to find different levels of affordability for people.
“Rather than going to agencies and the property going to the highest bidder, we’re working on longer tenancies, and trying to create a more stable rental market for those who can’t afford to rent but earn too much to get a council house. “
We’re trying to help people stay in the borough in properties of a good standard.”
Cllr Alcock also urged other councils to follow suit, adding: “There is talk of a London-wide letting agency, but what I wanted to do is get on with it. It would be great if this become something other boroughs in London did.”
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Comments
a working weekday Tuesday when LAT had not been updated by 8 am?
I suppose with no new news were are probably best off talking between ourselves.
Has anyone got any idea what 'The Lettings Revolution' is all about? from experience I know how much it costs to employ and service 10 BDMs and can't work out what revolution there could possibly be that hasn't already been tried or that will pay to feed 10 reps, return a profit for investors and as suggested by the advert provide an income for Agents.
Hackney are at it again - all Smoke & Mirrors!
Just WHO is paying?
More detail please.
Get over it! Wait until they encounter real problems and lets see if they can cope.
On the one hand it's a disgrace - unlike a private company, the Council don't need to return a profit and will have most of their overheads covered.
On the other hand, it's hilarious. Lets see how they get on in a competitive market even with all these advantages.
I would be amazed if this was being done without some kind of support, either financially or adminstratively, from the local authority. In which case it it would be completely unfair on exisiting agents.
Excellent idea.
Set up and managed a social letting agency for a local charity which was self funding by year three and thereafter producing a surplus of £20k for other homless
10% charge to landlord no other fees plus NO tenant fees.
So we pay councils business rates so that they can set up services that compete with local business. This sort of thing should be outlawed.
Where's the other half of the story?
How much are they charging landlords?
The concern here must be that the service is totally self sustaining and not supported by the tax payer in any way; salaries, office space, utilities etc must be paid for out of fees.