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

13:03 PM, 20th September 2023, About 8 months ago

Reply to the comment left by Seething Landlord at 20/09/2023 - 12:50
Exactly.
It was a daft suggestion from someone clearly anti landlord who hasn't thought through the consequences.

Beaver

13:26 PM, 20th September 2023, About 8 months ago

So have I misunderstood the previous post on this thread by Reluctant Landlord that said:

"wheres the 'reasonable and proportionate' angle on this exactly?

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

Seething Landlord

13:44 PM, 20th September 2023, About 8 months ago

Reply to the comment left by Beaver at 20/09/2023 - 13:26
Yes, it originated in a post from Teessider about what he might think reasonable. You will have to follow the links back if you can be bothered to do so.

Ian Narbeth

13:47 PM, 20th September 2023, About 8 months ago

Reply to the comment left by Seething Landlord at 20/09/2023 - 12:36
It includes that there was defect in the landlord's notice seeking possession. At present if that happens and the case gets to court the landlord will lose.

What section 11 says is that if the tenant surrenders rather than go to court, the local housing authority can impose a financial penalty on the landlord if it is satisfied beyond a reasonable doubt that the notice was defective.

That will make it riskier for landlords to accept a surrender without an order for possession. Even if a tenant, realising his case is hopeless, agrees to go, the landlord will remain at risk if there was an error in his paperwork. This would apply even if the landlord agreed to waive some arrears. The tenant can always say: "I would not have left if I hadn't thought the claim would succeed."

In other areas of commerce if litigating parties settle a dispute and it later turns out the claimant had made a mistake in his claim form, he isn't fined up to £5000.

The Act will not make it easier to evict defaulting tenants. Landlords, especially those who try to evict without paying for professional advice, will be at risk of financial penalties in circumstances where the tenant has defaulted. Moreover, the Act further complicates an already complicated system which is to the detriment of the involuntary creditor, the landlord.

Beaver

13:53 PM, 20th September 2023, About 8 months ago

Reply to the comment left by Ian Narbeth at 20/09/2023 - 13:47
So if this is correct, and what you say seems reasonable:

"Even if a tenant, realising his case is hopeless, agrees to go, the landlord will remain at risk if there was an error in his paperwork."

Then this would make renting a property very high risk for the majority of landlords renting out other than through an agent who really knew the process of eviction well.

Seething Landlord

14:11 PM, 20th September 2023, About 8 months ago

Reply to the comment left by Ian Narbeth at 20/09/2023 - 13:47
Yes, I agree with all that up to a point but the defect in the notice would have to relate to one or more of the matters specified in Clause 10, which seem to be designed to prevent the landlord taking advantage of the tenant's ignorance.

There is nothing I can see that would prevent the landlord offering a financial incentive for the tenant to surrender the tenancy, as long as he has not served proceedings that would fail if tested in Court because they are fundamentally flawed.

Ian Narbeth

14:15 PM, 20th September 2023, About 8 months ago

Reply to the comment left by Seething Landlord at 20/09/2023 - 14:11
But the key is "as long as he has not served proceedings etc". The tenant might offer to go without a fight if arrears are written off only after receiving a claim.

Seething Landlord

14:37 PM, 20th September 2023, About 8 months ago

Reply to the comment left by Ian Narbeth at 20/09/2023 - 14:15
Yes, that could happen. As you said before, landlords will be exposed to penalties if they get it wrong, although the chances of the LA becoming aware and having the time and energy to prove the offence to the required standard may be somewhat remote.

Easy rider

15:24 PM, 20th September 2023, About 8 months ago

Reply to the comment left by Beaver at 20/09/2023 - 13:26
Yes, I’m serious.

I have been a landlord for half of my adult life and I believe tenants should not be evicted just because the landlord wants to sell.

Landlords should be encouraged to sell to tenants or other landlords. Two years notice would be some encouragement.

Seething Landlord

15:57 PM, 20th September 2023, About 8 months ago

Reply to the comment left by George Pearson at 20/09/2023 - 15:24
I think you are the only one in step on this.

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