Prima has completed its latest property acquisition from a local authority’s initiative that helps reduce tenants becoming homeless following Section 21 no-fault evictions.
Knowsley Council’s Private Rented Rescue Scheme allows housing associations to access grant funding to support the buying of properties.
It applies where private landlords have issued Section 21 no-fault notices to tenants so they can sell the property with vacant possession.
The local authority has created a £1 million fund derived from Section 106 contributions paid by developers in lieu of delivering affordable homes on schemes post-planning.
Registered providers can apply for grant to cover the difference in market value of the property to the existing social value and any repair requirements needed to bring the property up to regulatory standards.
It also covered work needed to meet Prima’s own benchmarks which includes all acquisitions having a minimum C-rated Energy Performance Certificate.
Prima has completed the acquisition of seven homes from the scheme so far on the agreement tenancies are assured and rents are set at Local Housing Allowance rates for the area providing a big saving for tenants.
Prima Chief Executive, John Ghader, said: “The Private Rented Rescue Scheme is a fantastic initiative that is making a big difference reducing the number of people at risk of becoming homeless when they have done nothing wrong.
“It gives people good quality, secure homes that are fully regulated and stops families being separated or struggling to find a suitable place to live after being evicted.
“The scheme reduces their monthly rent and provides vital stability because people can continue living in the same home and community where they are close to schools, work, family and friends.
“It also reduces the potential of families being split up when moving into temporary accommodation or having to relocate to a new area which can be heart breaking and really disruptive.”
Cllr Tony Brennan, Cabinet Member for Regeneration and Economic Development at Knowsley Council said: “The scheme has huge benefits for all parties involved but first and foremost it is another layer of support that prevents people becoming homeless.
“By reducing the number of people needing expensive temporary accommodation it saves us a significant amount of money so we can invest in other key services.
“The more properties added to the affordable homes sector in our borough increases options and reduces the number of people being added to our housing waiting list.
“We also know housing associations like Prima provide a range of added value services with wider societal benefits too such as helping tenants find work, accessing training, providing financial support and introducing them to healthy lifestyle initiatives.”
Figures from homelessness charity Crisis show over 32,000 households in England were served with a Section 21 no-fault eviction in 2024, which is a seven per cent increase from the previous year.
While the Renters’ Rights Act will ban Section 21 no-fault evictions from May next year, landlords will be able to evict tenants if they want to sell or move into the property but not in the first 12 months after a tenancy begins.
After that, landlords have to give tenants four months’ notice to leave – double the current time period – and provide a specific reason which must comply with new rules in the Act.
And they can’t re-let the property again for another 16 months from serving notice.
“We really welcome the Renters’ Rights Act banning Section 21 no-fault evictions because it will give people more protection and security,” adds Mr Ghader.
“It is our belief the new legislation will lead to more private landlords selling their properties as many will not want to comply with the new regulations.
“We want to acquire more homes via the Private Rented Rescue Scheme and hope other local authorities look to establish similar models.”
Pictured L-R: Cllr Tony Brennan with John Ghader