Landlord Action comments on Fairer Private Rented Sector White Paper

Landlord Action comments on Fairer Private Rented Sector White Paper

9:55 AM, 23rd June 2022, About 2 days ago 5

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The long-awaited Government White Paper, ‘A Fairer Private Rented Sector’, has finally been released which, amongst other significant changes to the sector, confirms the abolition of Section 21 and starts to map out the future of evictions. Moving forward, landlords will always need to provide a reason for ending a tenancy, such as wishing to sell the property or wanting to move back in.

Paul Shamplina, founder of Landlord Action and Chief Commercial Officer for the Hamilton Fraser Group, comments on the impending changes:
“Whilst this will be unnerving for some landlords, the reality is that this has been a long-time coming and I believe those landlords who are committed to buy-to-let will remain.

“The changes offer tenants greater security as part of a plan to create longer tenancies. However, implementing more mandatory grounds of possession under Section 8 should also strike a chord with tenants, demonstrating that rent arrears, criminal and anti-social behaviour will not be tolerated.

“Previously, landlords have used Section 21 in these cases because trying to collate witness statements from co-tenants and neighbours has been challenging and often fruitless where the ground was discretionary. Knowing this procedure is mandatory will mean a judge has to grant possession as long as the requirements are met and evidence provided.

“I think it is disappointing that the notice period for the existing arrears eviction ground will be increased from two to four weeks, but I welcome the new mandatory ground for repeated serious arrears to prevent tenants paying off a small amount of arrears to stay below the eviction threshold. However, I believe falling into series arrears twice in three years should be sufficient enough for mandatory eviction rather than the proposed three cases.

“It is positive news that the changes have not been rushed in and the transition will be in two stages with at least six months’ notice of the dates that they will take effect, and at least 12 months between the two dates. With concerns surrounding the cost of living, rising interest rates and impending changes to EPCs, I do think it is likely we will see an initial spike of landlords using Section 21 before the changes come in, of which the unintended consequence will be that perfectly good tenants will be evicted.

“35% of Landlord Action’s instructions currently use Section 21 notices, so this is an indication of how much additional resource the court system will require, and a new robust system must be implemented to give landlords and agents the reassurance they need.

“However, much of what had been announced was expected.  It will take time for landlords to adapt and understand the new rules but as with everything, the market will adjust and find its new norm.”

Contact Landlord Action

Specialists in tenant eviction and debt collection. Regulated by The Law Society.


Comments

David Smith

12:24 PM, 23rd June 2022, About 2 days ago

Does the new proposed legislation that remove’s Section 21 and the other changes apply to Company Contract’s that already fell outside AST’s ?
Dave Smith

Luke P

17:45 PM, 23rd June 2022, About A day ago

What exactly have/will the Courts be doing to cater for this additional capacity (previously dealt with under s.21)? Or are they just doing their usual ‘we are the high and might Courts and we will (continue) to do things in our own sweet time, regardless of how big the backlog grows’…??

Monty Bodkin

21:41 PM, 23rd June 2022, About A day ago

"I believe those landlords who are committed to buy-to-let will remain."

'Committed definition; Loyal and willing to give your time and energy to something that you believe in.'

Being a landlord is optional, its not a belief.

Anyone claiming this won't have a major effect on the market are living in La La land or spinning their own agenda.

Golfman

9:43 AM, 24th June 2022, About 16 hours ago

I have always had the utmost of regard for everything Paul has said. But saying that many landlords will remain in this sector in the future is misguided.

Think about it - you are losing complete control of your asset worth hundreds of thousands - with no predictability or certainty on being able to get it back.

I have been a landlord for over 25years with a huge portfolio and sadly - correctly pointed out by Paul- will now be letting perfectly good tenants go so I can sell up. I had intended to NEVER sell any property. I am now done.... if I have taken such an about turn I can sure as hell say that for many other landlords who were less committed than me who will now exit. The best days of the BTL trade are well behind us - not because you can't make a return - but the risks now outweigh the benefits- even for top notch/high compliance focused ones like me. If you can not see the system and risks are severely stacked against you....heaven help.

Steve Masters

13:14 PM, 24th June 2022, About 12 hours ago

If you remember or research the housing market in the 80's and 90's you will find that the Housing Act 1988 transformed the housing market.
Taken from Alan Boswell's website:-
"Why was the Housing Act 1988 introduced?
The act was designed to make the private rental sector fair to both tenants and landlords.
Before it was introduced, tenancies were ‘protected and statutory’ which meant property laws were heavily skewed towards the tenant. Tenants could even claim the right to stay in a rental property indefinitely and eventually pass it on to their children or other relatives. Fundamentally, it meant landlords had little control over their own properties and many shied away from the rental market.
Meanwhile, the landscape of the property market was shifting as the Thatcher government’s Right to Buy scheme saw council tenants buy up the houses they lived in. This, together with an already shrinking private rental market resulted in a lack of rental properties which paved the way for the Housing Act 1988.
What were the outcomes of the Housing Act 1988?
The act was designed to redress the balance between tenant and landlord rights and give landlords greater control over possession of their properties. By doing this, the government also hoped to revive the flagging private rental market."

Back to my own words:
And did the private rental market revive? Sure did, it boomed.
Recent and proposed housing legislation has reversed the powers of the Housing Act 1988 and skewed the balance of control away from landlords and back towards tenants again. What will be the outcome?
It will have the reverse effect.
If you look up the antonyms, ie the reverse for 'revive' you will find words like:-
bore
break
damage
depress
destroy
discourage
dishearten
dissuade
dull
hurt
kill
ruin
weaken
agitate
annoy
deaden
disturb
sadden
trouble
upset
My rents are going up and up and I'm seriously considering selling up. That will be another 30+ people who will find it a struggle to find somewhere else to live.
How does that help tenants?

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