Abolition of section 21 is the biggest concern of landlords in 2024

Abolition of section 21 is the biggest concern of landlords in 2024

0:03 AM, 28th December 2023, About 6 months ago 4

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A new survey reveals that landlords in England and Wales are worried about the upcoming changes in the rental market – and the abolition of Section 21 evictions is their biggest fear for 2024.

That’s according to Zero Deposit after 1,042 landlords were questioned and most of them (89%) have between one and three properties in their buy to let portfolio.

The survey found that just 21% of landlords are optimistic about the rental market for the year ahead, while 24% were pessimistic and 55% remained neutral.

When asked about their plans to increase rents in the new year, 24% of landlords intend to increase rents, while 68% will maintain them at current levels, and 8% intend to reduce them.

‘Abolition of Section 21 evictions remain a concern’

The firm’s chief executive, Sam Reynolds, said: “It’s clear that the Renters (Reform) Bill and the abolition of Section 21 evictions, in particular, remain a concern for many landlords.

“It’s seen as fundamental to protecting their property when significant issues arise and with so many factors now working against them, many landlords have reached their tipping point and have exited the market.

“This comes at a time where more stimulus is needed to encourage landlords to invest in the sector, such as a more lenient tax regime.”

He added: “Without this, and in the absence of any meaningful progress in the building of new homes, the supply of rental stock will remain insufficient and rental prices will continue to rise in 2024.”

Repairing and running their BTL portfolio

The cost of maintaining, repairing and running their BTL portfolio ranked top among the biggest challenges in the year ahead, followed by legislative changes.

Finding and retaining good quality tenants also ranked high along with higher interest rates for buy to let mortgages.

The abolition of Section 21 evictions ranked top as the biggest potential challenge for landlords in 2024.

And limits to rent price increases and changes to notice periods ranked second, while greater rights for tenants when it comes to owning pets came third.

Mr Reynolds said: “Landlords electing to not increase rents, despite a vast number of reasons to do so, speaks to an understanding of their tenant’s financial constraints.

“In many cases, and in my experience, this underlines the impact of a positive relationship between landlords and tenants with just a small proportion planning to increase rents in the new year.”


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Comments

Martin Roberts

19:04 PM, 28th December 2023, About 6 months ago

Who'd a thought?

Old Mrs Landlord

21:26 PM, 28th December 2023, About 6 months ago

Reply to the comment left by Martin Roberts at 28/12/2023 - 19:04
As I see it, the main worry is the combination of removal of fixed term tenancies at the same time as Section 21, meaning someone whose character the landlord has minimal knowledge of can be in the property indefinitely, doing all sorts of damage and failing to pay rent. The courts will be years behind with evictions while tenants have free legal aid and can claim mental illness brought on by the stress of being asked to fulfil their contractual responsibilities and then claim that the property is unfit for human habitation.so the landlord should be fined and they should receive compensation. The risk -v-reward ratio is so skewed that few private landlords will remain after a year or two. Rent controls will be the final nail in the coffin of the PRS.

Freda Blogs

11:26 AM, 29th December 2023, About 6 months ago

Reply to the comment left by Old Mrs Landlord at 28/12/2023 - 21:26
Spot on!

TheMaluka

15:22 PM, 30th December 2023, About 6 months ago

Reply to the comment left by Old Mrs Landlord at 28/12/2023 - 21:26
“. . . . someone whose character the landlord has minimal knowledge of can be in the property indefinitely”
It’s a bit like marriage but at least with marriage divorce is possible and spouses are not inheritable.

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