0:03 AM, 5th April 2024, About 2 years ago 14
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Stricter regulations of landlords, including ending Section 21 ‘no-fault’ evictions, wouldn’t lead to a shortage of rental properties, one think tank says.
New research from the Social Market Foundation (SMF) challenges the government’s justification for watering down the Renters (Reform) Bill.
It says by studying other countries, England lags in tenant security with short tenancies which allow landlords to evict tenants without giving a reason.
The research suggests these practices put English renters at a disadvantage.
SMF researcher, Niamh O Regan, said: “English renters get a bad deal, certainly compared to their counterparts in other countries.
“Fixed term tenancies are too short, and no-fault evictions make periodic tenancies too risky.
“What’s more, cash-strapped councils and fragmented dispute resolution services are unable to consistently guarantee minimum standards, allowing bad landlords to continue to operate.”
She adds: “Longer tenancies and stronger protections for tenants would alleviate some of the pressures they face and make long-term renting a more attractive proposition – which it needs to be, given many of us are likely to be renting for much longer in future.”
The SMF says that the Bill should not have been tweaked after opposition from Conservative MPs because fears that landlords would leave are ‘overblown’.
It points to Scotland, which banned ‘no-fault’ evictions in 2017, and saw no decrease in rental supply.
That contradicts research from the Scottish Association of landlords which found there are 22,000 fewer rented homes in Scotland.
The report, entitled ‘Let Down’, highlights alternative approaches used elsewhere with Scotland and Ireland offering indefinite tenancies, providing renters with greater stability.
In Ireland, the SMF says that the private rented sector has doubled in size since similar legislation was introduced.
Along with abolishing Section 21 ‘no-fault’ evictions and adopting longer tenancies, the SMF proposes streamlining the rent dispute system.
It says that complaints can fall under various jurisdictions, making it difficult for tenants.
The report suggests a single point of contact, similar to systems in place in Australia, New Zealand and Ireland.
The SMF further recommends mandatory landlord registration to ensure landlords meet basic standards and deter bad practices.
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Cider Drinker
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Member Since December 2023 - Comments: 1539
8:38 AM, 5th April 2024, About 2 years ago
This think tank need to think again.
The current exodus is just the tip of the iceberg. Properties are illiquid assets. Many landlords are subsidising the tenants and will be waiting for the right opportunity to escape – before their losses become unsustainable.
Reluctant Landlord
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Member Since September 2018 - Comments: 3441 - Articles: 5
8:56 AM, 5th April 2024, About 2 years ago
its true – it wont lead to a shortage of rental properties…
Because there is ALREADY a housing crisis and no supply!
Think Tank’s thinking, sunk.
Cider Drinker
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Member Since December 2023 - Comments: 1539
10:08 AM, 5th April 2024, About 2 years ago
According to the 2021 Census for every hundred properties in England…
21 were rented by private landlords.
17 were rented by social landlords.
62 were owned (30 with a mortgage).
Every year, hundreds of thousands more migrants cross the Channel. Every few will buy their own home. This means they will add to the demand for social and private rentals.
There were 5 million privately rented properties in England. Add half a million migrants (three quarters of a million in 2022) and that’s probably 250,000 more people looking for private rental properties every year. So, over 4 years, there’s potentially 20% more people looking for privately rented accommodation.
Landlords have been leading the sector. That is a fact. With no sign of government easing the pressure, the exodus will accelerate rapidly.
Sadly, I will never have a new tenant. When any leave, I’m out.
Mike231
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Member Since February 2023 - Comments: 21
10:18 AM, 5th April 2024, About 2 years ago
What planet does this think tank live on, sold most of mine over the past 3 years one to go this time next year most landlords I know are selling some or all of there portfolios, one in particular has 30 for sale in a packaged deal, another so called influencer with no knowledge of the real world!
Paul Essex
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Member Since June 2019 - Comments: 712
10:20 AM, 5th April 2024, About 2 years ago
I am also a ‘silent quitter’ when my current tenants leave I will not be replacing them.
I may still be forced to evict if anyone starts raising ‘standards’ higher than EPC C which I have only just managed to reach, or if a discounted right to buy looks likely.
Stella
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Member Since May 2014 - Comments: 603
10:37 AM, 5th April 2024, About 2 years ago
I believe they are on the wrong track with their flawed logic.
It certainly did not improve matters for tenants when they brought in these draconian laws in Ireland, there were queues of people chasing every property. I wonder why that government are busy trying to reverse them now!
The think tank should have considered the reason why Mrs Thatchers government gave us section 21
If my figures are correct pre 1988 housing act the rental market had shrunk to circa 8%
GlanACC
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Member Since March 2023 - Comments: 1484
10:51 AM, 5th April 2024, About 2 years ago
Scotland didn’t see a decrease in rental supply as tenants there pretty much have a property for life. Once in you can’t get them out
John MacAlevey
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Member Since May 2014 - Comments: 137
10:52 AM, 5th April 2024, About 2 years ago
Social Market Foundation..stuffed with socialists & left-leaners.
Martin Roberts
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Member Since November 2016 - Comments: 227
11:39 AM, 5th April 2024, About 2 years ago
Landlords are selling, it’s Government policy to force them out.
They may not like this truth, but truth it is.
GlanACC
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Member Since March 2023 - Comments: 1484
14:12 PM, 5th April 2024, About 2 years ago
Reply to the comment left by Martin Roberts at 05/04/2024 – 11:39
No, governments are not forcing landlords out. It is a consequence of their policies that is doing that. Governments want landlords, small and large as they are cash cows but they are being swayed into policies that don’t stack up financially for existing landlords – and put off new landlords