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9:34 AM, 13th September 2022, About 2 years ago 22
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The newly published Decent Homes Standard is yet another example of lawmakers laying down rules without any understanding of the rental market – but the new prime minister has promised a sea change.
New prime minister Liz Truss says she feels landlords have been treated unfairly by previous governments and wants to create a less hostile environment.
In an exclusive interview, NRLA chief executive Ben Beadle told Property118 that he had spoken personally with Ms Truss at a leadership hustings and received firm assurances on the issue.
“She told me directly that she felt that landlords had been harshly treated these past years under a Conservative government and she wanted to create an environment that rather than landlords selling their properties and leaving the sector, that actually they remain and wish to invest,” said Mr Beadle.
“That’s a marked change from what we have seen for these past years and we shall be pushing hard to make sure that translates into more appropriate policies.”
He called for a major change of direction on housing policy.
“We need to see some ‘big C’ conservative policies now. The last administration has been hell bent on shrinking the sector, bashing landlords and looking at landlords as a cash cows.
“Actually, we are the only people that are providing homes to a significant level. I’m very happy that they are judged to a higher standard but we really do need a change of tack.
“I’m looking at the new administration to review section 24 mortgage interest changes; I would like them to do something about stamp duty to make it more attractive for people to invest; I’d like them to build social housing; remove the freeze on the local housing allowance so people can better afford rents in their area, and I’d like them to look again at the way Department for Work & Pensions treats landlords when it comes to Universal Credit, which is frankly a disgrace.”
Mr Beadle’s comments came just days after the release of the government’s new Decent Homes Standard discussion document, drawn up under the previous administration.
It seeks to imposes a minimum standard on homes in the private rented sector (PRS), previously reserved for public sector housing.
While most of its provisions are uncontentious, many landlords are concerned about the reference to properties having a ‘reasonable degree of thermal comfort’, which they fear could be tied into the projected rise in minimum EPC ratings from E to C.
The new rules apply to new tenancies from 2025 and all existing tenancies from 2028. It is already illegal to let a property with an F or G rating, unless it is a listed building, when exemptions apply.
Mr Beadle said he had been giving evidence recently to the Fuel Fuel Poverty Commission – and had made the point that “while we all know we’ve got to play our part” on climate change, “lobbing in a hand grenade [on EPC ratings] 18 months ago and then having radio silence since is spooking people”.
He continued: “I think landlords can help governments achieve their aspirations. But I’m afraid if there isn’t help then landlords will sell some of their stock. We are already seeing a shrinking private rented sector – 260,000 homes have left the sector in the last five years, and look at what we are seeing: costs increase across the board, demand massively outstripping supply, yet rents are rising 3.2%, a rate lower than the social sector which was 4.1% in April.
“If we have landlords selling their properties, not only is there a likelihood that property will not stay in the private rented sector, reducing the pool of property available, the property won’t be available anyway. It will go into the owner-occupier sector and the government will be no better off.”
Mr Beadle said the NRLA wanted to see a far more pragmatic approach to energy. “Yes, we accept the private rented sector will need to play its part, but there does need to be support to enable landlords and property owners to help government achieve their aspirations.”
His comments were echoed by Ian Maitland, president of the South West Landlords’ Association, who said landlords had been pilloried for too long.
“Shelter takes statistics from a very small proportion of properties, they extrapolate them and then they feed them to government, and gullible ministers who then produce legislation that is totally unfit for purpose.
“Councils are as worried as our members are about the words ‘reasonable degree of thermal comfort’ when landlords are under so many other pressures from the legislation brought in by Mr Osborne in 2014.
“With interest rates going up, and the removal of mortgage interest relief, we can run through a list of how landlords have been over-regulated and overtaxed over the past eight or ten years, and to add this burden will surely send even more out of the market. Certainly many older landlords are getting out now.”
Mr Maitland added that the people who drew up the legislation were clearly unfamiliar with the standard of build in areas such as the West Country.
“Some of their properties are horrendous and you will never get them to an D, never mind a C. Cornwall is a really good example. There is a dire shortage of housing, and they still can’t bring them up to a C.
“Does the local authority stamp on them and stop them letting them, so increasing the homelessness level? That’s the council saying that, not us. It’s not been well thought out.”
Mr Maitland said he had taken advantage of the Covid-era Green Homes grant, and applied external cladding to some of his terraced Victorian properties in Plymouth, at a cost of around £18,000-£20,000 per building.
Yet despite the new cladding, together with double-glazing and central heating, they still don’t meet a EPC rating of C.
He explained that external cladding also increased the likelihood of condensation and that steps have to be taken to increase the internal airflow to get rid of moisture-laden air and prevent condensation.
Landlords can only hope that the new prime minister is true to her word and instructs her new Housing Secretary Simon Clarke to have a rethink on EPCs, the energy aspect of the Decent Homes Standard – and the Renters’ Reform Bill.
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Graham Turrell, Landlord & Entrepreneur
16:34 PM, 13th September 2022, About 2 years ago
If it comes to pass, it will be the first real piece of PRS policy good news I for one have heard since pre-2014.
Spinning my prayer wheels, crossing everything, and not naming the Scottish Play (and, "cap" in hand, I not referring to the SNP housing legislation :-0)
Reluctant Landlord
17:00 PM, 13th September 2022, About 2 years ago
Reply to the comment left by Graham Turrell, Landlord & Entrepreneur at 13/09/2022 - 16:34
I may actually take up religion if this comes to pass.
a real miracle will have occurred!
Old Mrs Landlord
18:08 PM, 13th September 2022, About 2 years ago
Reply to the comment left by Mick Roberts at 13/09/2022 - 15:05
Mick, from your post it seems you are under the impression the paragraph you quoted is something said by Liz Truss but these are actually the words of Ben Beadle, chief executive of the NRLA. Would be great to hear something like that from a PM or Housing Minister.
Mick Roberts
5:45 AM, 14th September 2022, About 2 years ago
Reply to the comment left by Old Mrs Landlord at 13/09/2022 - 18:08
Oh I see, yes I now see that now you've pointed it out. Silly me. Thought it was too good to be true.
Old Mrs Landlord
8:57 AM, 14th September 2022, About 2 years ago
Reply to the comment left by Mick Roberts at 14/09/2022 - 05:45
Unfortunately it was too good to be true but you made me re-read it, hoping for a moment that I had got the wrong of the stick.
Laura Delow
10:55 AM, 14th September 2022, About 2 years ago
Some of what has been introduced these last few years has been needed in the PRS, but unfortunately much has been extremely destructive & the horizon looks even more bleak. Having been chipped away at year on year, I'm now feeling extremely worn down & have been toying with selling the whole portfolio (already sold 2). I've lost count of the changes thrown at us. In fact I tried to recall/list them albeit in no particular order. Have I missed anything?
1. Amendments to the Deregulation Act introduced in 2015 to end confusion over tenant deposits
2. New Section 8 notice must be used from April 2015
3. New standard form of Section 21 (form 6A) introduced under the Deregulation Act update
4. Tougher lending restrictions for Portfolio Landlords owning 4 or more properties
5. Tenants Deposits to be protected in Gov’t approved scheme
6. Letting agents to join Gov’t approved Property Redress Scheme
7. Lettings agents who handle tenant/landlord funds to belong to a Client Money Protection Scheme
8. Wear & Tear Allowance removed
9. Abolition of Mortgage Interest Relief phased in over 4 years from 2017 - effect is we are taxed on turnover not profit
10. Universal Credit impact on Landlords
11. Landlords to comply with GDPR
12. Right to Rent checks
13. Cap on Tenant Deposits
14. How to Rent checklist for renting in England
15. Tenant Fee Act – ban on tenant fees
16. New Smoke & Carbon Monoxide alarm regulations
17. New Electrical Safety regulations
18. Responsible for Legionella Risk Assessment
19. Fire Risk assessments
20. Homes Fitness for Human Habitation Act 2018 replaces Landlord & Tenant Act
21. Min MEES rating - EPC rating E targeted to be C for new tenancies 2025 & all tenancies by 2028
22. 3% SDLT levy
23. CGT rates 18-28% on chargeable gains from property
24. Filing of Capital Gain / payment of CGT within 30 days quietly slipped in which most didn't even realise albeit extended to 60 days recently
25. Covid-19 tenant protection measures impact negatively on Landlords
26. Selective/Additional/HMO Licence with unwarranted high Fees
27. MTD
28. Renters Reform Bill to include measures to abolish Section 21, introduce Periodic Tenancies & so called Lifetime Deposits, an update to the Gov’s Model Tenancy Agreement to allow tenants the right to keep pets, regular PATs for all supplied appliances, rent review notice periods, minimum housing standards by widening the Decent Homes Standard to include the PRS, mandatory Ombudsman membership, new Property Portal…
What have I missed?
If Truss & Clarke make good on their word to stop (maybe even reverse) the harsh treatment of landlords, it might just make me reconsider my position to remain a landlord.
Graham Turrell, Landlord & Entrepreneur
11:13 AM, 14th September 2022, About 2 years ago
Reply to the comment left by Laura Delow at 14/09/2022 - 10:55
It's a good list, and around 40% of those I would argue are Good Things for the health of the sector. Cruelly ironic that the remaining 60% are causing a swaithe of landlords to reduce supply and indeed abandon the sector, probably for good, thus rendering the 40% irrelevant.
The biggest bomb of all of course is Section 24 of the Finance Act, which as well as being disastrous for the viability of much of established BTL (where the experienced landlords mostly inhabit), sends the loudest and most disgraceful signal possible from UKGOV that in their eyes what we operate are a new Sole Trader category - "second class SMEs".
Luke P
11:54 AM, 14th September 2022, About 2 years ago
I'll believe it when I see it Benny-boy! All just words and this was *before* she was PM at a hustings. She may have since had quiet words in her ear to the contrary. I also dislike the way in which you only appear to have raised you head once you know you have a somewhat sympathetic ear. You have an awful long way to go yet, Ben. Prove it to yourself and separate out membership benefits (advice line/forms etc) with your lobby activities and see how many LLs actually back you with their money for that beyond the practical, day-to-day assistance they really join for. Plastic politician wannabe.
Mick Roberts
12:51 PM, 14th September 2022, About 2 years ago
Reply to the comment left by Laura Delow at 14/09/2022 - 10:55
Wow well pointed out Laura.
I'll put mine here if anything any good to u-I include this when telling tenants I wish to sell their house within 10 years as can't carry on doing what Govt & Councils require as I get older. And your super cheap rent certainly doesn't pay for it.
Most of u r very good. But are u perfect? Read Licensing conditions and tell yourself:
1. Could u comply with all them.
2. Would u take any tenant on that wasn't the most prim proper person ever?
3. If u was a landlord getting older, would u want to be dealing with that for EVERY house EVERY tenant?
4. Could u be doing with giving out 200 pages to each tenant each house.
5. Would u take a Benefit tenant on after being told u had to comply with them conditions?
Selective Licensing conditions Feb 2022
https://docs.google.com/document/d/1sD_HRl57ANNw4PBAb-FGRU7h-0Qby9Vm5xLioH_nA7c/edit?usp=sharing
Below is other reasons which are forcing my hand:
We now have to do Fitness tests HHSRS on new rentals £150 each house.
Electrical Installation Condition reports organisation & implementation £300+ each house.
Selective Licensing £890 just for one house.
Legionnaires checks £70 each house.
EPC’s £80 each house.
EPC’s soon to a C each house approx £10,000
Data protection checks £40.
Carbon Monoxide detectors & smoke detectors, when wired, £300 each house.
Getting registered with Information Commission officer £40.
Floorplans, Inventories £90 each house.
Landlord has to criminal check himself & has to prove he has Right to live in UK
Increased staffing admin behind the scenes.
As you’ve seen, checks/inspections on your houses now with smoke alarms-Should be much more detailed checks.
Consultant & Legal fees to keep pace with legislation & staff training.
Letting Agent costs for new tenancies & house swaps £70pm each house.
All the above is extra costs we din’t have when many of u moved in.
Below are other reasons why Landlords are packing up & why u can’t get anywhere any more, & remaining Landlords charging what rent they like:
1. Wear n tear allowance scrapped.
2. Stamp duty for BTLs.
3. 100% council tax payable on void properties from day 1 (not even a 25% discount).
4. Reduction in deposit amounts ( 5 weeks is woefully inadequate).
5. Unable to take pet deposits.
6. Council tax single banding for HMOs.
7. Section 24 tax, no other business is unable to offset their costs.
8. Numerous unfair decisions against landlords made by the deposit schemes, whilst landlords are unable to have a rogue tenant database, only a rogue landlord list.
9. Scrapping of fees for application and referencing which has led to higher costs from agents.
10. The lack of help with COVID and the court system being unfit for purpose, with a further insult of section 21 being scrapped!
Judith Wordsworth
13:24 PM, 14th September 2022, About 2 years ago
Well it's a start.
Still looking forward to my Zoom meeting with Alex Chalk MP this Friday to discuss the situation.
Anyone want anything raised please PM me your questions