Landlords and agents set to bear brunt of £33M cost of Renters’ Rights Bill
9:33 AM, 26th November 2024, 1 year ago
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The impact of the Renters’ Rights Bill is expected to cost £33 million a year, but the government insists it will not trigger a mass exodus of landlords.
According to the government’s impact assessment, the estimated cost for landlords is £12 per rented property annually, while agents are expected to face an average cost of £1,700 per year.
The government admits most of the costs (excluding those related to Awaab’s Law and the Decent Homes Standard) will fall on landlords, with the majority impacting private landlords, and a smaller portion affecting social housing landlords.
Landlords will only benefit by £9 a year
The assessment also estimates tenants will benefit by just £28 per household per year. Landlords are expected to see a gross benefit of only £9 per property annually, largely from reduced letting agent fees due to fewer household moves and shorter void periods.
The government claims the Renters’ Rights Bill will only cause a small number of landlords to exit the market.
The assessment said: “There is a risk that costs from the legislation may result in some landlords leaving the sector. This is difficult to estimate precisely, though we would expect it to be substantially mitigated by the additional cost per rented property being a very small fraction of average annual rent and asset value.
“The available evidence to date does not suggest that similar reforms to abolish section 21 in Scotland have negatively impacted supply, nor changes introduced by the 2019 Tenant Fees Act, despite concerns they would.”
However, a study by the Scottish Association of Landlords shows a reduction of 22,000 rental properties in Scotland in just one year due to government policies and anti-landlord rhetoric.
A survey by the National Residential Landlords Association (NRLA) found that 41% of landlords plan to sell properties within the next 12 months, compared to only 6% who intend to buy.
Replaced by more professional landlords
The government claims that those most affected by the costs of the Renters’ Rights Bill will be the landlords providing the poorest service to their tenants.
The assessment said: “Landlords facing the greatest costs as a result of these measures will be the ones providing the poorest service to their tenants, we anticipate they are more likely to exit the sector as a result of these changes, which leaves the potential for them to be replaced by more professional landlords.”
The assessment also reveals that the government has turned down the idea of a specialist housing court, saying the costs would be too high. Instead, they plan to digitise the court process, which they say will make things simpler for landlords.
The full impact assessment can be seen here
Tags:
government impact assessment, housing court digitisation, housing policies, landlord costs, Landlord regulations, landlords leaving market, National Residential Landlords Association, Private Landlords, Property market, rental property costs, Rental Property Market, renters rights bill, Renters’ Rights cost, Scottish Association of Landlords, tenant benefits
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Member Since May 2022 - Comments: 108
9:55 AM, 30th November 2024, About 1 year ago
Reply to the comment left by NewYorkie at 26/11/2024 – 11:01
Good luck, don’t blame you. I would say a good decision reading your pass comments highlighting your attitude to climate change etc.
I assume “NewYorker” strongly indicates you are from New York City? If so, and I could be wrong, explains lots.
Member Since November 2019 - Comments: 150
10:30 AM, 30th November 2024, About 1 year ago
They Have Produced a 142 Page impact assessment on the PRS which according to them Houses 11 Million Private Tenants.
Have they actually consulted any Actual Landlords ?
Rents have increased as Fastest Rates since 2015.
There is A Shortage of Property to Rent.
Private Rental Sector is costing NHS 340 million a year . Do to our Tenants being ill .
I have not read very Far But main Points do not mention key issues .
Section 24
Constant Anti Landlord Legislation
High Interest Rate increasing from 2% to 10.
And are Council Tenants not getting ill.
Never mind
These Experts are a lot cleaver than us.
Member Since October 2024 - Comments: 49
7:43 AM, 2nd January 2025, About 1 year ago
Banks and major landlords like Lloyds Bank and Legal and General will become landlords of choice and will choose tenants very carefully.
They will build their property portfolio very carefully too ,choosing modern energy efficient homes that meet or exceed EPC requirements.
Local authorities will not be able to bully them of force them into making unwarranted repairs or taking the side of mendacious and vexatious tenants who fail to turn on radiators ,open windows to air properties,create damp by cooking without ventilation,bring in large and unsuitable pets or allow unruly children to run amok.
The full force of the Renters Reform Bill and other schemes will be applied to any small pockets of ordinary landlords left after the cull.
Since modern housebuilding methods like 3D printing and Hof Haus methods or construction robots are not being employed not enough houses will ever be built.
This is compounded by a shortage of 250,000 construction workers and most building materials.
Add to that an excess of 47 million people over our optimum population of 35 million the strategy is clear.
1) Use homelessness as a tool to control poor and marginalised people
2) Tax the poorest pensioners and get them and others to live unhealthy lives so that they die off faster as has been the case since 2017
3)Obscure the fact that we are 17 million houses short by pretending that the shortage is much smaller
4)Fail to create new money by not exporting and stimulating entrepreneurial activity ( lowest growth rates of all European countries since Covid at 2.25%versus Italy ,5.5% and USA 10% plus)
5) Creating only non productive employment in the civil service,councils with 80% overmanning in practically all cases.
6) Allowing 1.8 million businesses to be “zombies” producing tax losses and not generating new jobs out of a total of 4.4 million companies registered at Companies House and actually trading.
( Source: Price Waterhouse Coopers)
7) Allowing the UK to have the worst worker productivity in Western Europe bar Greece
There are other things being encouraged none of which help the process of creating responsible tenants,more housing stock and solvent councils.
The solution for landlords is to sell up ,move into physical gold,silver and whisky plus cryptocurrency if they know what they are doing or look at renting in properly run countries.