Government claims Renters’ Rights Act benefits landlords

The government claim the Renters’ Rights Act provides “tangible benefits” to landlords despite admitting it has introduced no measures to help small landlords.

The act came into force on 1 May this year, bringing major changes, including the abolition of Section 21 evictions and giving tenants the right to request permission to keep a pet.

Landlords are also required to provide tenants with the Renters’ Rights Act Information Sheet or risk fines of up to £7,000.

RRA provides tangible benefits

In a written parliamentary question, Labour MP Tony Vaughan asked what steps the government was taking to support small-scale landlords in the private rented sector.

In response, housing minister Matthew Pennycook said: “The Renters’ Rights Act will provide tangible benefits for responsible landlords who provide high-quality homes and a good service to their tenants, including simpler regulation and clear and expanded possession grounds, so that landlords can regain their properties quickly when necessary.

“The government has not introduced any specific measures to support small-scale landlords in the private rented sector.”

Landlords will see a gross benefit of just £9 per year

Despite Mr Pennycook’s claim that the Act will provide tangible benefits, the government’s own impact assessment estimates landlords will see a gross benefit of just £9 per property per year, while tenants are expected to benefit by £28 per household annually.

The government also claims the Renters’ Rights Act will result in only a small number of landlords leaving the sector.

The assessment said: “There is a risk that costs from the legislation may result in some landlords leaving the sector. This is difficult to estimate precisely, though we would expect it to be substantially mitigated by the additional cost per rented property being a very small fraction of average annual rent and asset value.”

However, research by the National Residential Landlords Association (NRLA) reveals, with 41% of landlords saying they plan to sell properties within the next 12 months, compared with just 6% who intend to buy.