Generation Rent urges Lords to deliver stronger tenant protection from eviction

There are a few reasons that explain the rise in Section 21 Notices.

(1) Section 24. Taxing turnover rather than profit.

(2) Rising interest rates. Landlords are struggling with higher interest rates (exacerbated by Section 24). Higher interest rates also means better investments are available without the stress of tenants, councils and Westminster.

(3) Stagnant or falling house prices. With the prospect of lower prices, landlords need to be more ruthless when it comes to making a profit.

(4) Renters (Reform) Bill. Savvy landlords are exiting the sector ahead of yet more punitive legislation. If they think we have had a flood of Se Timon 21 Notices, prepare for a tsunami of Section 21 Notices this year.

(5) Landlords tend to be older people. Unless the next generation wants to become landlords, we really should consider what we are leaving our children. Mine don’t want property. An y tenant that becomes a burden will be somebody else’s burden soon enough.

Reply to the comment left by Cider Drinker at 01/05/2024 – 16:42
I think instead of “ruthless” it is better just to say realistic. As they are unable to deduct their finance costs many landlords have found themselves in a position where they are no longer making a profit after tax, where they are making a loss, or where the profit after tax that they are making is less than if they just stuck the money in premium bonds.

But most landlords want good long-term tenants. It is the government and the Bank of England that have made that activity less attractive and more risky. But in the short period since we have been unable to deduct our finance costs I have seen the agent that I use switch from advising me to keep rents slightly lower than market rent to minimise the risk of void periods to raising rent. The reason for the switch is that as the risk goes up and as landlords face more and more controls the only sensible and reasonable response to mitigating that risk is to push up the rent as high as possible.

There’s nothing ‘ruthless’ about that. It’s the only sensible response to a situation where as a result of government policy you find yourself facing more risk.

To suggest landlords are evicting tenants so they can relet is laughable.

Reply to the comment left by Martin Roberts at 01/05/2024 – 17:27
Except that is where landlords have had to evict to make improvements because they believed that they would be unable to rent their properties going forward unless they improved their EPC ratings. In these situations, of course, when the landlord re-lets the property it’s going to be at a higher rent.

But again, tenants don’t benefit from this and it is not landlords that are at fault here: The real reason for the disruption is local and central government meddling in the market and restricting choice so that they can pretend they are doing the right thing whilst they are grandstanding at climate change summits.

Reply to the comment left by Beaver at 01/05/2024 – 17:59
Absolutely.

Reply to the comment left by Cider Drinker at 01/05/2024 – 14:47
But you don’t evict every tenant throughout your period of ownership. Most will leave of their own accord.
You only sell each house once. Some of us have owned some of our houses for over 30 years

Don’t you believe it that you will be able to gain possession to sell one minor mistake or not in court will scupper that on advice from G Rent and co look at Scotland they are all effectively sitting tenants
Due to Mandatory to Discretionary change