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 8 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

Monty Bodkin

11:29 AM, 20th September 2023, About 8 months ago

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

I want to reassure Mr Richardson that landlords think the reforms will prove to be bad and his business will continue to suffer unless the reforms are dropped.

Seething Landlord

11:34 AM, 20th September 2023, About 8 months ago

Reply to the comment left by Ian Narbeth at 20/09/2023 - 10:49
(b) penalties for landlords who successfully persuade their tenants to surrender.

I've missed that bit. Can you point me to the clause in the Bill please?

Ian Narbeth

11:38 AM, 20th September 2023, About 8 months ago

Reply to the comment left by Seething Landlord at 20/09/2023 - 11:34
Clause 11.

Beaver

11:55 AM, 20th September 2023, About 8 months ago

Reply to the comment left by Reluctant Landlord at 20/09/2023 - 11:04
So basically if you rent out your home you might not be able to get it back for two years?

Golfman

11:59 AM, 20th September 2023, About 8 months ago

I fundamentally disagree with this entire thesis. As a large portfolio landlord of over 22 years operating a highly reputable business I can agree that most landlords won’t get rid of good tenants. Dont agree that s21 has been abused in the main (few rogues everywhere in life). I have always issued that notice to painful tenants causing nuisance to others or did not pay rent or who wrecked the property. To say s8 or whatever is available is a fallacy. Courts - when given any discretion- will rule in favour of tenants. That’s why s21 is helpful.

Try collecting evidence of tenant anti-social behaviour and getting that passed the courts. Meantime they run riot.

This is just a fact: if I can’t get my property back with certainty- cats chance in hell I will let to less credit worthy tenants (who may otherwise be really good people) or those on benefits. Massive flight to quality.

End result: Shelters fight backfires and hurts those it tried to save. Obvious to anyone. Look at the number of landlords selling up. And impact on rents. Any argument that landlords have suddenly decided to sell as they are ‘retiring’ is well…let’s be kind….make believe. But who leaves the market - the quality of course!!

Basic facts- if I can’t get my place back with certainty- rather not do it at all. Cash now yields more than property!

Enough said. Clueless lot. Like many things in Britain now - it’s policies driven out of envy and vindictiveness. Destroying any motivation to do anything productive is endemic in our society. Sad there is no light at the end of that rabbit hole.

Beaver

12:05 PM, 20th September 2023, About 8 months ago

Reply to the comment left by Golfman at 20/09/2023 - 11:59
I agree with the comments about credit. I might be able to live with giving tenants who have a family six months notice (although I think that if they can leave only giving me 1 months notice the fact I have to give them 2 is already generous to the tenant).

But I can't let to anyone if I can't get it back for 2 years.

Golfman

12:15 PM, 20th September 2023, About 8 months ago

Reply to the comment left by Beaver at 20/09/2023 - 12:05
2 years .. If you’re lucky under the new laws and broken courts

Seething Landlord

12:36 PM, 20th September 2023, About 8 months ago

Reply to the comment left by Ian Narbeth at 20/09/2023 - 11:38Thanks. I'm scratching my head on this one as Clause 11 refers to penalties for breaches of the requirements of Clause 10, which is to do with observing timescales and prohibiting the citation of spurious grounds i.e. misleading the tenant into surrendering the tenancy. Do you see it differently?

Beaver

12:37 PM, 20th September 2023, About 8 months ago

Unlike you I'm a small landlord (like the vast majority of landlords) not one with a large portfolio. If these reforms mean small landlords like me can't get our properties back for two years we will be unable to even consider renting them out whether they are our own principle private residences or mortgaged with a BTL mortgage.

And yes, for accidental landlords who are forced to rent out their agents are going to be forced to apply ever more stringent credit checks. Especially if you can't sell with a sitting tenant or can't get problem tenants out by other means.

Seething Landlord

12:50 PM, 20th September 2023, About 8 months ago

Reply to the comment left by Beaver at 20/09/2023 - 12:37
There is no proposal in the Bill for a 2 year period.

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