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It’s early on a Monday morning and the sliding doors to the office of Hastings Council haven’t stopped moving backwards and forwards. This is where the homeless come in desperation.

Eunice Dolby is sitting in the waiting area surrounded by suitcases containing all of her possessions.

The 77-year-old lost her husband last year and now she’s lost her home.

After 18 years as a tenant, her landlord used a Section 21 “no-fault” eviction notice to get her out.

Eunice was left homeless
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It’s the first time 77-year-old Eunice Dolby has been made homeless

“The bailiffs turned up at quarter past 10,” she says.

“I’ve always had somewhere to live. I’ve never been on the streets in my life.”

As she’s describing what happened, her head lowers and she catches her breath.

“I kept it clean and tidy, I’ve left it spotless. I never thought I’d be homeless.”

Sky's Nick Martin speaks to Eunice
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After 18 years as a tenant, Eunice’s landlord used a Section 21 eviction notice to remove her

Eunice carries her belongings
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Eunice carries her belongings out on to the streets

A few minutes later, 18-year-old Leah Gartside comes through the door with her 14-month-old baby Livia in a buggy. They’ve been living with her parents who’ve also got a Section 21 notice – the landlord wants to sell up.

“We’ve been good tenants, there’ve been no complaints. We love living there, we’ve been there for 16 years,” she says.

Leah’s come to get help before things get worse and the bailiffs are on the doorstep.

Leah and her daughter Livia
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Leah, 18, and her 14-month-old daughter Livia

Leah's daughter Livia
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Leah, Livia and her parents were living happily together until they got a Section 21 notice

I’m told that this is a typical Monday morning for the on-duty housing officers. I’m here to spend some time with them, to understand why Britain is gripped by a housing crisis that is causing misery for thousands of people.

And local councils are bearing the brunt because they have a legal duty to put a roof over the heads of homeless people eligible for help.

Housing officer and Leah
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Housing officer Phil with Leah

“I would say the one biggest stress in life is losing your home and not knowing where you’re going to sleep from one night to the next,” says the duty officer, Phil Veness.

He has pages and pages of appointments booked on his screen, plus they handle emergencies like Eunice.

Leah is working but she cannot afford to rent from a private landlord in Hastings.

England map

Winner and losers

The seaside town has boomed in the last few years with an increasing number of boutiques, restaurants and bars. Hybrid working after COVID means more people can live by the coast and commute into London.

House prices have seen the biggest relative rise than anywhere else in England over the last decade. Tourism is worth £288m a year.

And there are now around 1,000 Airbnb properties to rent. Passing estate agent windows, you can see the high price for small flats up for rent, often over £1,000 a month.

But popularity has a price. There are not enough homes to go around.

For sale signs in Hastings.

As in many coastal towns, the rental market is broken. Homes that are available cost a lot of money. New analysis by the Joseph Rowntree Foundation (JRF) shows that housing benefit was paying a quarter of all private rents in Hastings.

The housing benefit bill here is £28m a year and 22% of those properties are substandard.

In England, landlords who rent out homes which are below the decent homes standard receive £1.6bn in house benefits per year, (equivalent to £1 in every £5 spent on housing benefit in the private rented sector).

In other words, according to the JRF, benefits are subsidising poor quality homes.

Hastings map

Darren Baxter, principal policy adviser at JRF, says: “Taxpayers and local councils shouldn’t be footing the bill for poor-quality properties owned by private landlords.

“We need to get this dysfunctional system working again. Strategically bringing private homes back into social ownership is a rapid way to fix this crisis.”

But it’s still not enough. Housing benefit is calculated to reflect the local private rental market – the amount given from central government has been frozen since 2020 and will only go up from next month. It has not kept pace with rents.

This means that in Hastings, like many other parts of the country, there is a gap between the amount of benefit paid and rents charged.

I was told that some landlords have been known to evict their tenants, make their property available for temporary accommodation at a higher rate only then to house tenants who have been made homeless in the first place.

Section 21 evictions

‘I worry about the kids’

Chelsea Braiden is surrounded by bags and boxes again. Last year she and her two sons Harley, aged seven, and Jesse, six, were evicted from the flat they were renting because the landlord wanted the property back. And now they are packing up again.

“I’m stressed because I worry about the kids. That we’re not going to have the right suitable home before things get hard,” Chelsea says.

The stakes are high for Chelsea and she really needs a suitable home to live in because both of her boys are very ill.

Chelsea has two sons
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Chelsea needs spacious accommodation for her two sons, who suffer from Duchenne muscular dystrophy

Harley and Jesse have Duchenne Muscular Dystrophy, a severe muscle-wasting disease that gets worse over time. They will both need wheelchairs and help breathing. There is no cure. It’s likely they won’t live beyond the age of 30.

“I think it’s going to be difficult to find that suitable property that is big enough for both of these kids to live in. It’s not going to be just for now. It’s got to be until they pass away.”

They are living in a tiny bungalow on the edge of town. The doors aren’t wide enough for wheelchairs.

“You just worry that you’re not going to give them the best life that they should have. You see other children that age and they have decent homes, where they can be kids. My kids can’t just be kids, that’s what’s so difficult.

“And while they’re still walking, I want to give them what they need as kids.”

Read more:
Families housed in single rooms beyond legal time limit
The horror of living in a damp ridden home
The housing battle – which party will get Britain building?

National picture is bleak

There are 500 households living in temporary accommodation in Hastings and it’s costing the council a fortune. In 2019, the council spent £730,000 on temporary accommodation.

Within the next year, the council estimates that bill will rise to £5.6m. This is a third of the total budget for the whole town – pushing the council to the brink of bankruptcy.

Nationally, the picture is also bleak. Analysis by the Local Government Association shows that the number of households living in temporary accommodation is the highest since records began in 1998, costing councils at least £1.74bn in 2022/23.

But there are glimmers of hope. After packing up, Chelsea’s taking her sons to see their new house for the first time. It’s a bright modern property with a downstairs bathroom and easier access for the boys.

Their housing officer, Vanessa Stock, has relocated four households to make the move possible. But it is still temporary.

Vanessa Stock, housing officer
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Housing officer Vanessa Stock with Chelsea

Chelsea says she has looked for private rentals but cannot afford it. She works part-time around school hours, but it’s not enough.

Like thousands of others, she is priced out of the market.

Temporary accommodation numbers

Waiting game

There are more than a million people in England waiting for something more permanent – affordable social housing. The rent for social housing is linked to local wages so cheaper than a private landlord. Tenancies are also more secure.

Housing manager Alan Sheppard shows what he calls the “housing register”. It is effectively the waiting list for a house.

On this day there are just six available properties for 1,500 households.

“So as you can see, the supply is nowhere meeting the demand,” Alan says.

Alan Sheppard
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Housing officer Alan Sheppard says ‘supply is nowhere meeting the demand’

‘I don’t get anywhere’

On the other side of town is a former nursing home that has been converted into bedsits.

In the communal hallway some pushchairs are parked up. Most of the bedsits are for homeless mums and their children. Like 20-year-old Jessica, who lives in a small room with her two-year-old son Leo. This is the only home he has ever known.

Jessica is used to this. She has been stuck in temporary housing for five years since she was 15. She knows the housing register system well. She is one of the 1,500 households clicking and hoping, week after week.

“When I became homeless, we went to about five estate agents in town. Everywhere we walked into turned us down.

“I wake up and wait. I wonder if I am going to get a house today. I bid and get nowhere. I get excited thinking maybe I am going to get lucky. But I don’t get anywhere.”

And she’s worried about her son, Leo.

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Two-year-old grows up living in one room

“He’s so used to being in a trapped room that the outside world for him is hard to deal with,” says Jessica.

“Even just going for a walk or going out to a playgroup is strange for him.”

And as each day passes, the council must pay for the accommodation.

Buying back

One solution is to roll back the clock.

In the 1980s, millions of council houses were sold to tenants under the Right to Buy scheme. Now many councils are buying back the homes they once owned to cope with the crisis.

This has been possible with the help of government money. The £1.2bn Local Authority Housing Fund has been split between 203 councils – partly to house Ukranian and Afghan refugees, but also help others in poor quality, expensive temporary accommodation.

Hastings Council has used this, alongside the Move on Fund to fund the purchase of 50 houses along with their own budget.

“Needs must,” says Chris Hancock, director of housing at Hastings Borough Council.

Chris Hancock
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Chris Hancock, director of housing at Hastings Council, says 50 houses have been bought back with the help of government funding

He shows one of the three-bed, ex-council houses with a garden that was bought back from the open market last year.

“We can either keep going, spending £500 a week on temporary accommodation, which just isn’t good enough, or bite the bullet and start building up our portfolio again…

“We can’t afford for people to be in emergency accommodation. We don’t want people living in one room in bed and breakfasts. We want people to be in a home.”

Share of budget on temporary accommodation

The government says it’s committed to delivering 300,000 homes a year, including spending £11.5bn on affordable homes.

In 2021/22, just 7,528 new social homes were delivered. Nowhere near enough for the 1.1 million people on the waiting list.

Empty houses

A block of flats in a pretty, leafy part of Hastings lies empty. It is owned by Orbit, a local housing association.

Clifton Court
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Clifton Court (two central blocks) lie empty in Hastings

Local campaigner Grace Lally is using colourful chalk spray to emblazon walls with slogans questioning why this block is empty.

She says Orbit is deliberately neglecting social housing stock so that it can be sold privately for profit.

“Last summer the people living here were moved out – the housing association said the flats didn’t meet modern thermal efficiency standards. Most of the houses in Hastings are probably not up to modern thermal efficiency standards,” she said.

“It’s just another drain of social housing out of the system. [There are] 53 flats that could be going to people who are on the waiting list. This is a scam. This is not okay.”

Grace Lally
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Local campaigner Grace Lally says local housing associations are deliberately neglecting social housing stock in favour of selling privately for profit

A spokesperson for Orbit said: “Orbit is a not-for-profit housing association. We will therefore aim to provide as much affordable housing on the site as planning and environmental decisions allow.

“We took the decision to decommission Clifton Court with plans to redevelop the scheme into new affordable homes given the existing building could no longer meet customers’ needs… We cannot confirm what proportion of the new development will be earmarked for social housing as this will form part of the planning process.”

The mainstream political parties agree on the need for more homes to be built.

The government says it’s “on track” to meet its manifesto commitment of building one million more homes before the end of this parliament and defended the use of temporary accommodation.

A spokesperson for the Department for Levelling Up, Housing and Communities said: “Temporary accommodation is a vital safety net to make sure families are not left without a roof over their heads. Figures show that the majority of families who have been in temporary accommodation for long periods of time are living in council-owned properties or private rented sector homes rented by the local authority. This provides a suitable home whilst families wait for settled accommodation, and councils have a responsibility to help families find this as quickly as possible.

“That’s why we are giving them £1.2bn over three years through the Homelessness Prevention Grant, and our £11.5bn Affordable Homes Programme will go further to deliver thousands more affordable homes to rent and buy across the country.”

Leah and her daughter Livia
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There is a six-year wait for a three-bedroom flat

Angela Rayner, Labour’s deputy leader and shadow housing secretary is making big promises ahead of the election.

“After 14 years of failure, the Conservatives have utterly failed to deliver the safe, secure and affordable homes Britain needs,” she said.

“Labour will put an end to the Tories’ housing emergency by ending the scourge of no-fault evictions, getting Britain building again with 1.5 million new homes, and delivering the biggest boost to affordable, social and council housing for a generation.”

No quick fix

Back at the front desk, Phil has nearly completed his meeting with Leah, the single mum we met at the council offices in the morning.

She is just the latest in a long line of people who need a home.

Phil says: “For a one-person property the average waiting time in Hastings is four years.

“For a two-bedroom place, it’s five years. And for a three-bedroom, it’s six years.”

Leah shakes her head. Her journey into the unknown is just beginning.

This is the first special report in Faultlines, a Sky News series that aims to explore some of the biggest issues facing Britain in an election year.

You can watch Nick Martin’s full report today at 10.30am, 12.30pm, 2.30pm and 6.30pm on Sky News, in the video above or on YouTube.

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Pizza Hut UK hunts buyer amid Budget tax hike crisis

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Pizza Hut UK hunts buyer amid Budget tax hike crisis

Pizza Hut’s biggest UK franchisee has begun approaching potential bidders as it scrambles to mitigate the looming impact of tax hikes announced in last month’s Budget.

Sky News has learnt that Heart With Smart (HWS), which operates roughly 140 Pizza Hut dine-in restaurants, has instructed advisers to find a buyer or raise tens of millions of pounds in external funding.

City sources said this weekend that the process, which is being handled by Interpath Advisory, had got under way in recent days and was expected to result in a transaction taking place in the next few months.

HWS, which was previously called Pizza Hut Restaurants, employs about 3,000 people, making it one of the most significant businesses in Britain’s casual dining industry.

It is owned by a combination of Pricoa and the company’s management, led by chief executive Jens Hofma.

They led a management buyout reportedly worth £100m in 2018, with the business having previously owned by Rutland Partners, a private equity firm.

One source suggested that as well as the talks with external third parties, it remained possible that a financing solution could be reached with its existing backers.

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HWS licenses the Pizza Hut name from Yum! Brands, the American food giant which also owns KFC.

Insiders suggested that the increases to the national living wage and employers’ national insurance contributions (NICs) unveiled by Rachel Reeves would add approximately £4m to HWS’s annual costs – equivalent to more than half of last year’s earnings before interest, tax, depreciation and amortisation.

One added that the Pizza Hut restaurants’ operation needed additional funding to mitigate the impact of the Budget and put the business on a sustainable financial footing.

The consequences of a failure to find a buyer or new investment were unclear on Saturday, although the emergence of the process comes amid increasingly bleak warnings from across the hospitality industry.

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Last weekend, Sky News revealed that a letter co-ordinated by the trade body UK Hospitality and signed by scores of industry chiefs – including Mr Hofma – told the chancellor that left unaddressed, her Budget tax hikes would result in job losses and business closures within a year.

It also said that the scope for pubs and restaurants to pass on the tax rises in the form of higher prices was limited because of weaker consumer spending power.

That was followed by a similar letter drafted by the British Retail Consortium this week which also warned of rising unemployment across the industry, underlining the Budget backlash from large swathes of the UK economy.

Even before the Budget, hospitality operators were feeling significant pressure, with TGI Fridays collapsing into administration before being sold to a consortium of Breal Capital and Calveton.

Sky News recently revealed that Pizza Express had hired investment bankers to advise on a debt refinancing.

HWS operates all of Pizza Hut’s dine-in restaurants in Britain, but has no involvement with its large number of delivery outlets, which are run by individual franchisees.

Accounts filed at Companies House for HWS4 for the period from 5 December 2022 to 3 December 2023 show that it completed a restructuring of its debt under which its lenders agreed to suspend repayments of some of its borrowings until November next year.

The terms of the same facilities were also extended to September 2027, while it also signed a new 10-year Pizza Hut franchise agreement with Yum Brands which expires in 2032.

“Whilst market conditions have improved noticeably since 2022, consumers remain challenged by higher-than-average levels of inflation, high mortgage costs and slow growth in the economy,” the accounts said.

It added: “The costs of business remain challenging.”

Pizza Hut opened its first UK restaurant in the early 1970s and expanded rapidly over the following 15 years.

In 2020, the company announced that it was closing dozens of restaurants, with the loss of hundreds of jobs, through a company voluntary arrangement (CVA).

At that time, it operated more than 240 sites across the UK.

Mr Hofma and Interpath both declined to comment.

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UK economy grows by 0.1% between July and September – slower than expected

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UK economy grows by 0.1% between July and September - slower than expected

The UK economy grew by 0.1% between July and September, according to the Office for National Statistics (ONS).

However, despite the small positive GDP growth recorded in the third quarter, the economy shrank by 0.1% in September, dragging down overall growth for the quarter.

The growth was also slower than what had been expected by experts and a drop from the 0.5% growth between April and June, the ONS said.

Economists polled by Reuters and the Bank of England had forecast an expansion of 0.2%, slowing from the rapid growth seen over the first half of 2024 when the economy was rebounding from last year’s shallow recession.

And the metric that Labour has said it is most focused on – the GDP per capita, or the economic output divided by the number of people in the country – also fell by 0.1%.

Reacting to the figures, Chancellor of the Exchequer Rachel Reeves said: “Improving economic growth is at the heart of everything I am seeking to achieve, which is why I am not satisfied with these numbers,” she said in response to the figures.

“At my budget, I took the difficult choices to fix the foundations and stabilise our public finances.

“Now we are going to deliver growth through investment and reform to create more jobs and more money in people’s pockets, get the NHS back on its feet, rebuild Britain and secure our borders in a decade of national renewal,” Ms Reeves added.

The sluggish services sector – which makes up the bulk of the British economy – was a particular drag on growth over the past three months. It expanded by 0.1%, cancelling out the 0.8% growth in the construction sector

The UK’s GDP for the the most recent quarter is lower than the 0.7% growth in the US and 0.4% in the Eurozone.

The figures have pushed the UK towards the bottom of the G7 growth table for the third quarter of the year.

It was expected to meet the same 0.2% growth figures reported in Germany and Japan – but fell below that after a slow September.

The pound remained stable following the news, hovering around $1.267. The FTSE 100, meanwhile, opened the day down by 0.4%.

The Bank of England last week predicted that Ms Reeves’s first budget as chancellor will increase inflation by up to half a percentage point over the next two years, contributing to a slower decline in interest rates than previously thought.

Announcing a widely anticipated 0.25 percentage point cut in the base rate to 4.75%, the Bank’s Monetary Policy Committee (MPC) forecast that inflation will return “sustainably” to its target of 2% in the first half of 2027, a year later than at its last meeting.

The Bank’s quarterly report found Ms Reeves’s £70bn package of tax and borrowing measures will place upward pressure on prices, as well as delivering a three-quarter point increase to GDP next year.

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Chancellor’s Mansion House speech vows to rip up red tape – saying post-financial crash rules went ‘too far’

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Chancellor's Mansion House speech vows to rip up red tape - saying post-financial crash rules went 'too far'

Chancellor Rachel Reeves has criticised post-financial crash regulation, saying it has “gone too far” – setting a course for cutting red tape in her first speech to Britain’s most important gathering of financiers and business leaders.

Increased rules on lenders that followed the 2008 crisis have had “unintended consequences”, Ms Reeves will say in her Mansion House address to industry and the City of London’s lord mayor.

“The UK has been regulating for risk, but not regulating for growth,” she will say.

It cannot be taken for granted that the UK will remain a global financial centre, she is expected to add.

Money blog: Britain’s most affordable town revealed

It’s anticipated Ms Reeves will on Thursday announce “growth-focused remits” for financial regulators and next year publish the first strategy for financial services growth and competitiveness.

Rachel Reeves
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Rachel Reeves


Bank governor to point out ‘consequences’ of Brexit

Also at the Mansion House dinner the governor of the Bank of England Andrew Bailey will say the UK economy is bigger than we think because we’re not measuring it properly.

A new measure to be used by the Office for National Statistics (ONS) – which will include the value of data – will probably be “worth a per cent or two on GDP”. GDP is a key way of tracking economic growth and counts the value of everything produced.

Brexit has reduced the level of goods coming into the UK, Mr Bailey will also say, and the government must be alert to and welcome opportunities to rebuild relations.

Mr Bailey will caveat he takes no position on “Brexit per se” but does have to point out its consequences.

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Bailey: Inflation expected to rise

In what appears to be a reference to the debate around UK immigration policy, Mr Bailey will also say the UK’s ageing population means there are fewer workers, which should be included in the discussion.

The greying labour force “makes the productivity and investment issue all the more important”.

“I will also say this: when we think about broad policy on labour supply, the economic arguments must feature in the debate,” he’s due to add.

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The exact numbers of people at work are unknown in part due to fewer people answering the phone when the ONS call.

Mr Bailey described this as “a substantial problem”.

He will say: “I do struggle to explain when my fellow [central bank] governors ask me why the British are particularly bad at this. The Bank, alongside other users, including the Treasury, continue to engage with the ONS on efforts to tackle these problems and improve the quality of UK labour market data.”

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