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

Text Size

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.


Share This Article


Comments

Monty Bodkin

16:01 PM, 20th September 2023, About 8 months ago

Reply to the comment left by George Pearson at 20/09/2023 - 15:24That would wipe out 'accidental' landlords at a stroke.
A minority of pro landlords might like that idea but it would cause misery for hundreds of thousands of tenants.
Being a landlord is optional.

Beaver

16:09 PM, 20th September 2023, About 8 months ago

Reply to the comment left by George Pearson at 20/09/2023 - 15:24
I think that you are entitled to believe whatever you want to believe. Personally, I don't really have a problem with giving tenants who have children six months' notice because they've got to get schools etc. sorted out. As long as they are paying, getting on with the neighbours and looking after the property that is.

The problem is though that if it were true (and a previous post says that it may not be) that you couldn't get your property back, or sell it for up to two years then it's likely that a high proportion of landlords would be unable to rent their properties.

So do believe what you want but whatever the RRB says, if the 'law of unintended consequences' means that many landlords may no longer be able to rent their properties out then that will create further upward pressure on rents.

Beaver

16:11 PM, 20th September 2023, About 8 months ago

Reply to the comment left by Monty Bodkin at 20/09/2023 - 16:01
Yes I think this comment is true Monty. And for landlords who are for some reason temporarily renting out their own principle private residence rather than a BTL property with a BTL mortgage and there is a risk of them being unable to get their home back when they need to, they will be unable to contemplate doing it.

Seething Landlord

16:31 PM, 20th September 2023, About 8 months ago

Reply to the comment left by Beaver at 20/09/2023 - 16:09
You might find it useful to research what the RRB actually says. Not even Shelter have suggested that a landlord should have to wait 2 years if he wants to sell his property.

Beaver

16:33 PM, 20th September 2023, About 8 months ago

Reply to the comment left by Seething Landlord at 20/09/2023 - 16:31
It's why I'm on this thread. To find out what it does say from other people who know more about it than I do. If it doesn't say 2 years then it doesn't say 2 years. I thought it said that if the landlord needed to move back into the property then that was mandatory grounds for possession and you got it back in 2 months. I read something else on this thread.

dismayed landlord

16:47 PM, 20th September 2023, About 8 months ago

Reply to the comment left by Ian Narbeth at 20/09/2023 - 13:47
What happens if the tenants ask •I’ll go for £xxxxx . If it’s at their instigation? Same as asking the landlord to serve them a S21 to get a LA property?

Beaver

16:50 PM, 20th September 2023, About 8 months ago

Reply to the comment left by dismayed landlord at 20/09/2023 - 16:47
So other people on here know more about this than I do, particularly about evicting tenants. Having done a quick google search it looks as though there's a pretty good summary here:

https://www.reedsrains.co.uk/blog/20-things-landlords-need-to-know-about-the-renters-reform-bill-2023#

Reluctant Landlord

10:32 AM, 21st September 2023, About 8 months ago

Reply to the comment left by Seething Landlord at 20/09/2023 - 16:31
I think that a foetus from Gen Rent was recently quoted as saying this should be the case. Total Muppet - they know nothing of the reality of the tripe they spout!

Beaver

10:42 AM, 21st September 2023, About 8 months ago

Reply to the comment left by Reluctant Landlord at 21/09/2023 - 10:32
The link from Reeds Rains above is a really helpful summary; best I've seen so far. But the summary on this link does also appear to hint at some of the potential problems Ian Narbeth has raised on this thread.

Seething Landlord

22:56 PM, 21st September 2023, About 8 months ago

Reply to the comment left by Beaver at 21/09/2023 - 10:42
If you want to know what is in the Bill you can find the full text, the official explanatory notes and briefing papers here https://bills.parliament.uk/bills/3462/publications

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Tax Planning Book Now