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10:04 AM, 23rd April 2024, About 2 weeks ago 32
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Labour’s shadow housing secretary, Matthew Pennycook, has proposed a significant change to the Renters (Reform) Bill which would require landlords to wait two years from the start of a tenancy before they can sell or move back into their property.
The change is one of a raft of amendments that could be added to the Bill.
MPs are set to debate the amendment in Parliament tomorrow (Wednesday), including the postponement of the abolition of Section 21 evictions until the court system has been improved.
Not all the amendments will be debated – there are 112 pages of 200 amendments – and many will be agreed on procedural grounds.
The Speaker will decide which amendments will be debated – and the number depends on the time for debate before a vote takes place.
However, another of Mr Pennycook’s amendments would see Section 21 being abolished when Royal Assent is given – not when the court system has been upgraded and backlogs cleared.
Propertymark has stated that these amendments will bring about key changes in the Bill.
Another proposal is the establishment of an initial minimum tenancy, effectively creating a default fixed term of six months in all contracts. This mirrors a standard break clause in many existing contracts.
The original version of the Bill would have allowed tenants to end a tenancy with two months’ notice at any point.
Propertymark argued that this could lead to poor outcomes for both landlords and renters.
The government will now ensure that a mandatory possession ground, allowing landlords to evict students living together in an HMO, applies to any property let to students.
But only if landlords write their intention to use the student possession ground into the tenancy agreement.
To prevent duplication with the introduction of the new property portal, the government will conduct a review of selective licensing and the licensing of HMOs to reduce burdens on landlords.
The Lord Chancellor will also be required to publish an assessment on barriers to possession and the readiness of the courts in advance of abolishing Section 21 for existing tenancies.
The Secretary of State will also be obliged to carry out an independent review of the new law and report to Parliament on the effectiveness of the new possession grounds.
There will also be a review of the impact of moving to periodic tenancies and abolishing fixed terms within 18 months of the measures being applied to existing tenancies.
Additionally, an annual parliamentary update on the state of the private rented sector, including data on the supply, size and location of properties, will be provided.
Propertymark’s head of policy and campaigns, Timothy Douglas, said: “Throughout the passage of the Bill, Propertymark has worked hard to highlight the importance of retaining fixed-term tenancies and the need for improvements to the court system if the abolition of Section 21 is to work.
“Whilst these amendments show that Ministers have listened to our concerns, there are still areas that need further clarity.”
He added: “We are continuing to engage with officials at DLUHC, the Minister and Parliamentarians as the Bill moves to its next stage.”
Other amendments proposed for the Renters (Reform) Bill, include:
From Mr Pennycook there’s an amendment that would see the abolition of section 21 evictions coming into force on Royal Assent, with provisions for any notices served before that date.
He has also tabled an amendment to maintain the homelessness prevention duty owed by local authorities to tenants who have received an eviction notice to vacate a property – and for this to be extended to notices for possession issued under section 8 of the Housing Act 1988.
Not inviting or encouraging bids for rent: Landlords will have to advertise the rent and must not invite offers in excess of that amount to prevent tenant bidding wars.
Plus, he is asking for a government review within two years of the law being introduced to review the impact of the changes to grounds for possession.
The Labour MP also wants to introduce a blanket ban on landlords refusing to rent to families with children and those on benefits and for the landlords’ database to record details of notices of possession served by a landlord in respect of each dwelling of which they are the landlord.
Conservative MP Natalie Elphicke has tabled an amendment that ‘would require landlords to pay a ‘relocation payment’ to tenants when evicting them from their property within two years of the start of the tenancy, except on the grounds of crime and antisocial behaviour.
Helen Morgan has tabled an amendment ‘that a landlord cannot let a property as a short-term or holiday let for at least three months after taking ownership of the property for the purposes of them or their family occupying it.’
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Student HMOs VS Professional HMOs?
Beaver
14:07 PM, 23rd April 2024, About 2 weeks ago
Reply to the comment left by PH at 23/04/2024 - 13:19
I think the deputy leader of the labour party knows very well that relationships don't always work out, and sometimes they don't work out very quickly.
If two people have properties that they live in and are considering living together in one of them this labour proposal would dramatically increase their risk.
Crouchender
15:58 PM, 23rd April 2024, About 2 weeks ago
Reply to the comment left by Beaver at 23/04/2024 - 14:07
Wonder how visible Raynor will be in the debate tomorrow (i.e Below radar presence?) or just leave it to Pennycook
Beaver
16:09 PM, 23rd April 2024, About 2 weeks ago
Reply to the comment left by Crouchender at 23/04/2024 - 15:58I don't know...I suspect that she now has a better understanding of the issue than she did. But the fact that the policy of married owners having to nominate one residence as their own creates a disadvantage to married couples has already been raised in the Rayner debate.
This new labour policy would make the situation worse wouldn't it? Two people both with their own homes thinking of living together and renting one out would have to think twice about this under this new policy. They would be way better off renting one out under the rent-a-room scheme and retaining access to their original home.
Luke P
16:46 PM, 23rd April 2024, About A week ago
Reply to the comment left by GlanACC at 23/04/2024 - 10:33
And to think she's a 'Tory'!
Beaver
17:00 PM, 23rd April 2024, About A week ago
She styles herself a banking and finance expert:
https://cps.org.uk/research/save-100000-homes-from-reposession/
"In this paper, banking and finance expert Natalie Elphicke, outlines her central recommendation that given the rise in house repossessions, governments efforts should be focused on encouraging the courts to be more understanding of those in arrears rather than direct government support as such measures are often expensive and futile."
I'm guessing she's not a landlord trying to regain control of her house. But as a banking and finance expert she ought to be able to understand that if you increase the risk of investing in an activity then fewer people will do it. Or if they do it, they will take steps to mitigate their risks, like putting rents up.
John Nyari
9:40 AM, 27th April 2024, About 7 days ago
It is my prediction (partly because I am helping it come true) that many landlords will leave the market but in slow motion. It is not in my interest (or my tenants) to evict just because of the RRB fiasco. I don't believe my "good" tenants will change their behaviour overnight. However, one day they will leave. It is this point when landlords will decide whether it is worth the risk to re-let. So whilst there may be a flurry of S21s going on I think this is a drop in the ocean compared to the slow withdrawal from the PRS. Whilst the RRB is not necessarily the main driver per-se, it is (as others have said) the systematic removal of property rights coupled with the continual de-incentivising to be a landlord. It is a sad irony that in trying to improve the PRS they will ultimately decimate it. This is all just a part of the journey towards corporate run lettings where the small landlord is hounded out. Once you realise you are swimming more and more against the tide you need to take stock.
TJP
11:36 AM, 28th April 2024, About 6 days ago
If you are unfortunate enough to live in Brent, that will be 2 years, plus listing, say 1 year, plus getting knocked back by the judiciary who are quite happy to invent evidence for the tenant, say another year plus, when you are finally granted a possession order, waiting for the bailiff, another year. So all up, at least 4 years. Whose property is it?
Crouchender
11:42 AM, 28th April 2024, About 6 days ago
Reply to the comment left by John Nyari at 27/04/2024 - 09:40
Completely agree with your view of this slow exit out of PRS as old 'good' tenants vacate.
Politicians will just brush it under the carpet as they do in Scotland and no-one admits their duff policies reduced PRS
GlanACC
12:02 PM, 28th April 2024, About 6 days ago
If you bank with Natwest (RBS) their Freeagent accounting software will handle up to 5 properties and is FREE as long as you hold an account with them. It is not yet 'linked' to HMRC but they say it will be - so my expensive SAGE software is going ...
Beaver
11:00 AM, 29th April 2024, About 5 days ago
Reply to the comment left by John Nyari at 27/04/2024 - 09:40
I agree that there does appear to be a long-term trend disadvantaging small-portfolio landlords and favouring incorporated businesses. It appears to me to be a mixture of social engineering and electioneering but nothing at all to do with creating a healthy, sustainable housing market.
I recall that when the changes were brought in stopping landlords from deducting their finance costs (unless they incorporate) there was some government PR saying that they were trying to avoid another housing boom; but this policy didn't stop house prices going up and it didn't result in a trend towards more sustainable housing. What it has done is to contribute towards a dramatic escalation in rents.