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Paying off your landlord's mortgage can't be right in this day and age. There must be a cleverer way

We must end the vulnerability of tenants caught in a trap only enriches the landlord

Prime minister Harold Wilson is given a standing ovation after his speech at the Labour Party Conference, Blackpool, 1965, months after the Rent Act passed through parliament. Image: ANL / Shutterstock

Only by the creation of truly public housing are we going to end the tyranny of people living in private rented accommodation. Private rented accommodation suits the interests of either the landlord or the tenant. We have just been through – and with the new Renters’ Rights Bill maybe now can get out of – a landlord-favouring period. It would seem that parliament is now about to decide whether we move into a tenant-favouring period. And yes, the signs are it’s now the turn of the tenants.  

When landlords are in favour then many more landlords rent. When landlords feel threatened, whether the threats are perceived or real, they have in the past cashed in their chips and sold. And moved out of landlordism.  

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The vulnerability of the tenant, with such things as section 21 ‘no fault evictions’, undermines the security of the tenant, even if the landlord has no intention of using them. Just the threat itself is a cause of worry for the tenant. Hoping for one of the numerous good landlords and hopefully avoiding one of the dreadful landlords is a ‘hope game’ you would not wish on someone bringing up a family; or even trying to be a single tenant.  

No, if there is a law out there that says a landlord can tell you to leave any time not because of anything you’ve done – you’ve not misbehaved or been a bad payer – then that threat takes the edge off the tenancy and makes the tenant vulnerable.  

Hence ending section 21 has become a priority for those of us who do not want to see insecurity legalised, which at the moment it is.  

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Public house building for the public: mixed usage including the ex-homeless, the trainee doctor, the novice police officer, the disabled, the student studying for a hopefully life-enhancing degree; all and sundry in need of housing should be included as ingredients in a truly public – because at times it may include most of us – housing policy.  

The swings and roundabouts of the rented sector, who’s up and favoured and who’s down and out of favour, could be ameliorated by a vigorous public housing corporation. A public body that addresses all at once through its very creation the more than hundred-year-long crisis around housing, a crisis thrown up in a once vigorous industrial nation that has lost its vigour. An ex-colonial, ex-imperial, once world dominating spent industrial and commercial empire trying to get back on its feet in its post-glory times.  

How do we attack the evils that have accumulated after decade upon decade of the politicisation of our housing stock? How do we address the fact that often the only way some people can get some financial security is by investing in property? There has been no surer way of creating financial security for many than by them becoming a landlord; go to a bank, get a mortgage, rent the property out and get the tenant to pay off your debt. And thereby accumulate the wealth created by an increasingly valuable housing product.  

The housing crisis started so far back that it frightens many people who only want to deal with the crisis now; not knowing that the politicisation of housing that has led to this crisis started over 100 years ago. That there was a period from the end of the First World War until 1956, 38 years, when tenancies were protected. This period was ended by the Tory government, leading to a pro-landlord period.  

And then from 1965 under the Labour government a pro-tenant period reigned, only to be changed again by Thatcher’s regime after 1979 – etc etc. Right up to now, when currently landlords have the edge.  

But the Renters’ Rights Bill will change most of that. And landlords will scurry away from what they see as an oppressive regime and probably sell their property, as they did after Harold Wilson’s Rent Act of 1965 which greatly favoured the tenant over the landlord.  

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There’s a see-saw over housing: but it’s the tenant that gets caught in a vice and put at the mercy of governments and landlords to – hopefully – look after their interest.  

This historical pickle impels us to decision time: we must do all we can to protect the flimsiness of a tenancy agreement made by those struggling to get security for themselves and their families.  

A public housing programme would address the emergency. It would put housing on a war footing. It would innovate. It would bring in new thinking around using different materials – prefabrication for instance – and new land usage. It would borrow land for perhaps 30 years. It could move housing forward on this transitional programme.  

Building housing for 30 years takes the weight off the present and the need to buy land, the most expensive element in creating housing.  

I only throw up these thoughts because I remember the perfectly acceptable ‘prefabs’ that people I knew lived in post the Second World War. Temporary housing that in fact lasted over 50 years. We would not build such housing now because housing technology has moved on. We certainly wouldn’t use asbestos as they did post-war.  

But a truly vigorous and well thought out public housing programme could exploit temporary land-use opportunities. Could use brown field sites.  

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All I know is that we have to end the vulnerability of tenants who are caught in a trap that at the moment only enriches the landlord at their expense. And we have to break this over-100-year-old game of preferring one over the other.  

The damage done to our social housing stock by politically motivated underinvestment will not be washed away anytime soon. So I advocate using all available technologies to end the paucity of our current housing situation. Let’s be brave. And not accept the merry-go-round of people caught in the trap of the private rented sector, which enriches one party only to deplete the other.  

Tenants in most agreements have only one role, and that is to pay off the landlord’s mortgage. That can’t be right in this day and age. There must be a cleverer way to end this tyranny of housing over getting on with your life.  

John Bird is the founder and editor-in-chief of the Big Issue. Read more of his words here.

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