Landlords in the Doldrums since Section 21 ban announced

by Property 118

8:54 AM, 14th August 2019
About 4 days ago

Landlords in the Doldrums since Section 21 ban announced

Make Text Bigger
Landlords in the Doldrums since Section 21 ban announced

Landlord confidence in their own lettings business has reached a record low, according to research* by the NLA. In their survey for Q2 2019, only 29% of landlords said their business expectations for the next three months were good or very good, the lowest level since the survey began in Q4 2006. Confidence levels dropped significantly in the second half of 2015 in response to George Osborne’s changes to landlord taxation, but had until now remained above 35%.

This represents a marked shift in confidence since the Government announced its proposal to abolish section 21 no-fault evictions.

Regionally, confidence is highest in the East Midlands and in Yorkshire and the Humber (both 34%), and lowest in the North East (18%) and Central London (19%).

Richard Lambert, CEO of the NLA, says: “With the amount of change that has occurred over the last four years and now the proposal to abolish no-fault evictions without any certainty that the courts will be able to cope with the increase in cases this will create, it’s no wonder that landlords are pessimistic about their future.

“Landlords need to be confident in their own businesses for the private rented sector to function properly. Given that it’s expected to compensate for the lack of social housing, it is vital that this confidence is restored.”

Landlord Rosy Hopkins is one landlord considering leaving the market, saying: “We are currently experiencing difficulties with a hostile tenant, who regularly calls us at silly hours, swears at us, and generally swears at and is abusive towards other tenants. We are again issuing a Section 21 to evict him.

“Without recourse to Section 21 we would undoubtedly have lost several decent tenants and would be stuck. I appreciate they are in contravention of their leases, but also understand how difficult it could be to prove that.

“We are actively considering selling our properties, which is no doubt what the government is trying to achieve.  After the new tax burdens, which may well cripple us, and steal our hard-earned retirement income, and all the new/threatened legislation, we have just about had enough.”

*NLA Landlord Panel Survey Q2 2019 (738 respondents)



Comments

Cathie Hawkins

9:41 AM, 14th August 2019
About 4 days ago

I wonder what would happen if all of us landlords on here put all our properties on the market at the same time (20% above market price!). Would it even make the news? Would it make those that will have to rehouse all our tenants sit up? Or would they change the law so you can't sell your asset at all?

paul robinson

10:08 AM, 14th August 2019
About 4 days ago

Section 21 consultation - 75 page document pdf. Plus Q&A document.

Am I missing something - search for “licensed HMO or Shared Tenancy” and only listed once, with no real substance or relevance.

Having met my local MP at his surgery I’d encourage all Landlords to do the same - voice your concerns and impact over scrapping section 21!!

The student and young professional shared & licensed HMO rental market needs fixed term tenancies and the vehicle of section 21 to accommodate this, plus give sufficient swift support to deal with antisocial behaviour And other matters if occurring in a HMO, where decent tenants could be continued to be affected by that housemate, if such means are not easily available to the landlord.

Fixed term tenancies and the great benefit they bring to all parties in shared HMO are too long to list here, but fundamentally provide good quality accommodation to young professionals at a competitive price point, allowing them to save and getting on the property ladder themselves.

The government need look at the very different rental demographic, all across the UK and not as they have done with the tenant fee ban, role out “one size fits all” changes.

The proposed changes will again have a detrimental effect on decent tenants in fairly managed shared & licensed HMO’s and completely go against the governments goal of providing good quality rental accommodation as a fair price!

SM

12:32 PM, 14th August 2019
About 4 days ago

Hi
I’ve been in to see my MP again, this time regarding the abolition of Section 21 and the fact that many MP’s don’t appear to be willing to discuss issues facing Landlords. My MP was very sympathetic and of the belief that if you raise costs at any point of the Rental Value Chain they will be passed on to Tenants. My MP also confirmed that it was an MP’s job to hear the concerns of their Constituents, regardless of who you actually voted for. A letter has already gone from my MP to the Minister for Housing, expressing my concerns, and a response received. I also have a commitment that after summer recess questions will be asked about the objective of the abolition of section 21.
Please can everyone write to their MP, ask for an appointment and talk to them about the market and the effects that Government legislation is having on the market.


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

Don't worry Boris - Fergus will give you a home

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More