After a two-decade hiatus, Preston City Council has resumed its role as a social housing landlord by registering as a local authority provider of social housing. This development marks a significant step in addressing the ongoing shortage of affordable, quality rental homes in the city, with the council’s initial acquisition comprising 18 homes. The move reflects broader challenges in the UK’s social housing sector, where demand continues to outstrip supply, and councils are exploring direct ownership to better meet local housing needs.
Council’s Return to Social Housing Ownership
Preston City Council’s decision to re-enter the social housing market follows a 20-year period during which it transferred its housing stock to a housing association, Community Gateway Association. Since then, social and affordable housing in Preston has been predominantly provided by registered providers rather than the council itself. The recent registration as a local authority social housing provider removes a key regulatory barrier, enabling the council to hold and manage housing stock directly once again.
This shift is part of a strategic ambition to regain control over the supply and allocation of social rented homes, which are typically offered at lower rents than other affordable housing options. By becoming a registered provider, the council can now build or acquire properties and ensure they are let at social rent levels to households most in need.
Addressing Housing Demand and Quality Concerns
Demand for social and affordable housing in Preston remains high, with lengthy waiting lists and many households living in substandard private rented accommodation. The council leader has highlighted the increasing reliance on temporary accommodation as a symptom of the wider housing shortage. This return to direct ownership is intended to help alleviate these pressures by increasing the availability of secure, quality homes at social rent.
Local authorities across the UK face similar challenges, with many experiencing growing demand for social housing amid constrained supply. Preston’s move reflects a broader recognition that councils may need to take a more active role in providing social housing to address local needs effectively, especially where private and third-sector providers have been unable to fully meet demand.
Initial Acquisition and Management Arrangements
The council has secured an agreement to purchase 18 homes from a developer as its first step back into social housing provision. While modest in scale, this acquisition represents a tangible start to rebuilding the council’s housing stock. To manage these properties, the council plans to appoint a registered provider responsible for housing management, repairs, statutory compliance, and regulatory support.
This partnership approach allows the council to benefit from the expertise and operational capacity of established housing providers while retaining ownership and control over the homes. It also ensures that the properties meet regulatory standards and that tenants receive appropriate management services.
Social Rent Supply and Recent Affordable Housing Delivery
Preston has seen the delivery of over 1,700 affordable homes in the past five years, primarily through registered providers either developing new properties or purchasing affordable units from private developers. However, the council notes that only a small proportion of these have been offered at social rent levels, which are generally more affordable than other types of affordable housing such as affordable rent or shared ownership.
By directly owning homes let at social rent, the council aims to increase the availability of genuinely affordable housing options for priority households. This approach may help to address affordability gaps and improve housing stability for lower-income residents.
What this means for landlords
For private landlords and letting agents, the council’s return to social housing provision may signal a shift in the local housing landscape. Increased social housing supply could affect demand dynamics in the private rented sector, particularly for lower-income tenants who might otherwise seek private accommodation. Landlords should consider monitoring local housing policies and allocations to understand potential impacts on tenant demand and rental market conditions.
Additionally, the council’s partnership with registered providers to manage social housing stock highlights the ongoing importance of compliance with housing standards and regulatory requirements. Landlords should ensure they remain up to date with relevant legislation, including the Renters’ Rights Act and other compliance obligations, to maintain good practice and avoid enforcement risks.
What TLA members should consider
- Review local housing strategies and council announcements to anticipate changes in social housing supply and demand in your area.
- Ensure rental properties meet all statutory compliance requirements, including safety standards and tenancy regulations, to remain competitive and compliant.
- Consider how increased social housing provision might influence tenant profiles and rental demand within your portfolio.
- Engage with professional development opportunities such as the TLA Academy to stay informed on housing law and compliance updates.
- Explore partnership or networking opportunities with local housing providers and councils to better understand the evolving housing market.
- Utilise resources such as the Renters’ Rights Act compliance pack and the Landlord Legal Support Hub for guidance on managing tenancy and regulatory obligations.
TLA Training Academy
The Landlord Association provides structured guidance, compliance education and practical support for landlords, letting agents and property professionals. Members can access training and resources designed to help them stay organised, informed and prepared.
Landlords can explore the Academy here: https://landlordassociation.org.uk/tla-academy/
Those looking to join and access member support can register here: https://landlordassociation.org.uk/get-started-with-the-landlord-association/
TLA update
The Landlord Association is continuing to expand its support, resources and partner network for landlords, tenants, agents and property professionals across the UK. Service providers interested in working with TLA can register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/
Source: www.property118.com
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