Government has ‘spooked’ landlords over the Renters (Reform) Bill

Government has ‘spooked’ landlords over the Renters (Reform) Bill

0:04 AM, 20th September 2023, About 7 months ago 52

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A buy to let mortgage expert has accused the Government of needlessly ‘spooking’ landlords over the proposed Renters’ (Reform) Bill with its language aimed at pleasing tenants.

Gavin Richardson, the boss of Mortgages for Business, says the Government’s proposals to change evictions, including scrapping Section 21 notices, are not as bad as many fear.

He was reacting to reports in some newspapers that some Tory MPs, including some in the Government Whips’ office, want to weaken the Bill.

One newspaper reported: ‘There are a number of landlords in the Whips’ office who are amplifying the level of concern among Tory MPs and holding things up’.

Mr Richardson said: “I want to reassure the Whips that we don’t think the reforms will prove to be that bad for landlords.

“First, sensible landlords — even those working in the Conservative Whips’ office — rarely turf out good tenants who pay their rent as they want them to stick around.”

‘Reform will disproportionately hit the minority of bad landlords’

Mr Richardson continued: “So, this reform will disproportionately hit the minority of bad landlords who have abused Section 21 notices, rather than the reputable end of the market.

“Second, tenancies can still be ended if there has been a breach of the tenancy by the tenant.

“And the government has said it will introduce a new ombudsman to settle disputes between tenants and landlords without the need to go to court.”

He added: “The government has also promised to digitise the courts’ agenda ahead of these reforms to ensure a swift resolution to these cases.

“That will speed up processes where possession cases require them.”

‘The real danger of this reform’

He explains: “Third, the Whips will always be able to end a tenancy if they plan to move back in or sell it — that was the real danger of this reform, anything that inadvertently risked landlords’ ability to realise the value of their housing assets through disposal.

“The loss of full tax relief on mortgage interest payments for individual landlords, and the stamp duty surcharge on additional property purchases were far more significant for landlords.”

He adds: “The fact that the Whips are nervous is understandable, given their own government’s rhetoric.

“I don’t think for a moment that Section 21 exacerbated homelessness as one Tory communities secretary has claimed.

“The government has needlessly spooked landlords — including their own backbenchers — in a bid to curry favour with tenants.”

Mr Richardson says there are 87 MPs from all parties who are landlords who run 167 rental properties with each MP earning more than £10,000 in rent – the level at which such income must be reported in the ‘member’s interests’ register.


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Comments

Beaver

9:25 AM, 20th September 2023, About 7 months ago

I assume that this is an error: “Third, the Whips will always be able to end a tenancy if they plan to move back in or sell it — that was the real danger of this reform, anything that inadvertently risked landlords’ ability to realise the value of their housing assets through disposal."

Or do they mean that the Whips themselves have so many properties that they are also worried they might not be able to move back into their own homes if they'd rented them out to go and be an MP in London.

Stella

9:31 AM, 20th September 2023, About 7 months ago

Is he not worried about the customers he will loose if this becomes law?
I cannot think of any other reason for his apparent lack of understanding of the damage this bill will do to the industry if it becomes law.

Teessider

10:27 AM, 20th September 2023, About 7 months ago

Good landlords have nothing to fear from the RRB. Landlords, by definition, need tenants and there are no reasons to evict a tenant that couldn’t be covered by Section 8.

Politicians and the general public have fallen for ruse of the well-publicised falsehood that a Section 21 Notice is a no-fault eviction. It simply isn’t. It’s a no evidence eviction. Section 8 has a number of grounds that do not apportion blame on the tenant. The RRB plans to introduce more.

There is no reason that a landlord should care I’d S21 is abolished so long as S8 is streamlined. The grounds where the tenant hasn’t been at fault could have much longer notice periods to allow tenants to arrange travel to work and new schools etc., the ground of repossession by the lender could be 12 months notice. The ground for landlord choosing to sell could be 2 years.

Reluctant Landlord

10:32 AM, 20th September 2023, About 7 months ago

So, this reform will disproportionately hit the minority of bad landlords who have abused Section 21 notices, rather than the reputable end of the market.

How can a LL 'abuse a S21' exactly? its a legal procedure that a LL can use to regain possession of their property.

Its a NO REASON given proceedure, so what evidence is there of abuse, how is this term qualified and moreover where is the exact evidence to prove this???

Reluctant Landlord

10:33 AM, 20th September 2023, About 7 months ago

Reply to the comment left by Teessider at 20/09/2023 - 10:27
wheres the 'reasonable and proportionate' angle on this exactly?

2 years notice by a LL to sell? Are you serious?

Beaver

10:36 AM, 20th September 2023, About 7 months ago

Reply to the comment left by Reluctant Landlord at 20/09/2023 - 10:33
I'd missed that. If you had a tenant living in your principle private residence for some reason presumably you wouldn't need to give that tenant two years notice before selling?

Old Mrs Landlord

10:45 AM, 20th September 2023, About 7 months ago

The R(R)B is honestly named and is exactly what iit is titled, that is, a Renters' Bill. Government claims that it will improve the lot of both renters and landlords are simply not true. This spin has also been parroted by some letting agents. When asked what improvements there are for landlords, politicians insist that this legislation will make it easier for landlords to evict tenants who exhibit ASB, but this single "improvement" is a blatant lie since without Section 21 there will be no mandatory route by which landlords can evict tenants whose behaviour makes the lives of neighbours and other tenants in a communal building a misery. The legislation was a blatant appeal to the tenant vote as there are more tenants than landlords and their advocates, such as Shelter, are extremely vocal and media savvy. However, it seems to be finally dawning on the policy-makers that their years of demonising, scapegoating, over-taxng and over-regulating landlords have backfired with a dreadful negative impact on tenants Government croneys who were planned to replace private landlords and build lots of lovely new rental housing are failing to deliver so, as individual landlords sell up and rents rise, those who wish or need to rent are looking for someone to blame. Politicians who are landlords and back-benchers who hold constituency surgeries can see the damage that has been done and resist voting for measures which risk making matters worse. As the NRLA has said "This crisis is entirely of the government's own making".

Ian Narbeth

10:49 AM, 20th September 2023, About 7 months ago

Lets analyse this:

“First, sensible landlords — even those working in the Conservative Whips’ office — rarely turf out good tenants who pay their rent as they want them to stick around.” Obviously. But sensible landlords also use s21 as it is quicker and easier.

Mr Richardson continued: “So, this reform will disproportionately hit the minority of bad landlords who have abused Section 21 notices, rather than the reputable end of the market. The likes of Shelter say every s21 notice is an abuse.

“Second, tenancies can still be ended if there has been a breach of the tenancy by the tenant. Well thank goodness for that. Don't tell Shelter or they'll campaign against breach of tenancy being a ground for possession. However, the Government has slipped in (a) extra obstacles to using section 8 and (b) penalties for landlords who successfully persuade their tenants to surrender.

“And the government has said it will introduce a new ombudsman to settle disputes between tenants and landlords without the need to go to court.” Which of course will take time and if the tenant is not paying rent, the landlord will be made to mediate before being able to sue.

He added: “The government has also promised to digitise the courts’ agenda ahead of these reforms to ensure a swift resolution to these cases.Have you seen the state of the courts? Have you seen how long it takes to get to court? Have you heard the stories of courts losing papers? Have you seen how well Government's use of IT works? If you think the Government "digitising the court's agenda" will speed things up (especially without spending money) I have a bridge to sell you.

“That will speed up processes where possession cases require them.” And flying pigs will be seen over the capital.

Reluctant Landlord

11:04 AM, 20th September 2023, About 7 months ago

Reply to the comment left by Beaver at 20/09/2023 - 10:36
presume nothing I think. Devil in the detail. Irrespecive really if it is your priciple home or not. Noone can invisage what situation they are going to be in in 2 years time. Look back at two years ago. If a lot of BTL LL's knew waht was coming there would potentially have been a mega crisis afoot now!

Monty Bodkin

11:13 AM, 20th September 2023, About 7 months ago

Reply to the comment left by Teessider at 20/09/2023 - 10:27
"Good landlords have nothing to fear from the RRB."

Landlords are reacting accordingly and predictably to the RRB.
You'd need to be one to understand.

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