Landlords will face a Labour government keen on PRS reform

Landlords will face a Labour government keen on PRS reform

8:54 AM, 5th July 2024, About A week ago 21

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Landlords will face a Labour government keen to reform the private rented sector (PRS) after it won a landslide victory in the General Election.

Sir Keir Starmer will be the new prime minister, with deputy Angela Rayner set to make three housing policy announcements in the next few weeks.

That will include the building of 1.5m homes and the possibility of PRS reforms.

Ms Rayner has said previously that Section 21 ‘no-fault’ evictions would end on day one but there’s no sign that will happen.

However, the property market is struggling, and house prices fell 0.2% in June, Halifax reports.

Worst result in their history

The Conservatives have lost power after 14 years to rack up the worst result in their history.

Sir Keir said: “Change begins now.”

Tory leader Rishi Sunak said the scale of the Labour victory was a ‘sobering verdict’.

The Lib Dems have also made huge gains, while Reform has four MPs – including leader Nigel Farage – and have the third-highest number of votes nationally.

Eviction expert predicts surge in S21 notices

Eviction expert Paul Shamplina, of Landlord Action, said: “With Labour’s election win and their commitment to abolishing Section 21 ‘no-fault’ evictions, there will be significant concern within the landlord community today about the future of their properties and tenancies.

“Although Labour pledged to scrap Section 21 from day one, recent statements by Labour’s deputy leader, Angela Rayner, on LBC Radio, admitted that the practicalities of this promise are far more complex, as we already know.

“An immediate ban on Section 21 evictions is not feasible without first addressing the current inefficiencies within the court system.

“Rayner’s acknowledgment of this highlights the need for a balanced approach that considers both the rights of renters and the practicalities faced by landlords.”

Landlords serving Section 21 notices

Mr Shamplina adds: “Nevertheless, given Labour’s pledge, we now anticipate a further surge in the number of landlords serving Section 21 notices in the coming months.

“Landlords are likely to act pre-emptively to protect their interests before any legislative changes take effect.

“At Landlord Action, we have already seen an increase in instructions for Section 21 notices as many landlords move to secure their rental income or prepare their properties for sale.

“The primary concern for landlords is that without the ability to use Section 21, they might face significant challenges in managing problematic tenancies effectively.”

‘Drive more landlords to take action’

He continued: “The uncertainty surrounding the timing and implementation of these changes is likely to drive more landlords to take action now, rather than risk being unable to address issues swiftly in the future.

“While the intention behind scrapping Section 21 is to protect tenants from unfair evictions, it’s crucial that the transition is handled carefully.

“This will help avoid unintended consequences that could reduce the availability of rental properties and ultimately harm both landlords and tenants.”

‘We congratulate Labour’

The chief executive of the National Residential Landlords Association, Ben Beadle, said: “We congratulate Labour on its election to office.

“The party’s manifesto committed to fundamental reforms to the private rented sector. This includes ending section 21 ‘no explanation’ repossessions.

“We stand ready to work constructively with the new government to ensure changes are fair and workable for tenants and responsible landlords and are sustainable for the years to come.”

He added: “It is vital, however, that reform does not make worse an already chronic shortage of rental properties to meet demand.”

‘What’s happening with renters reform’

Oli Sherlock, the managing director of insurance at Goodlord, said: “The new Government must give the market clarity on what’s happening with renters reform.

“If similar legislation to the previous Bill is set to go through, we need clear information on details and timelines.

“The election-induced delay is also an opportunity to ensure concerns around Section 21 and court backlogs are effectively addressed before legislation hits the statute books.”

He adds: “Lastly, we need consistency of leadership. This isn’t Premiership football; we can’t afford to have another merry-go-round of Housing Ministers – the sector is far too fragile.

“Long-term planning, consistent leadership, and clarity over details is what the market is calling out for as we enter this new chapter.”


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moneymanager

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9:57 AM, 5th July 2024, About A week ago

Beadle doffs his cap.

Ofer Moses

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10:51 AM, 5th July 2024, About A week ago

Ben Beadle often states"Tenants and responsible Landlords", suggesting there are irresponsible Landlords and no irresponsible Tenants.
He should state "Responsible Tenants and responsible Landlords"
Or simply "Tenants and Landlords"

Beaver

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11:02 AM, 5th July 2024, About A week ago

Reply to the comment left by Ofer Moses at 05/07/2024 - 10:51
As a small-portfolio landlord I have very serious concerns about what Angela Rayner is going to come up with for the PRS. But at the same time they haven't got their proposals through parliament yet.

Even so, I'm pleased for the Scottish electorate that they saw through the SNP and effectively kicked them in to touch.

Jason

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11:07 AM, 5th July 2024, About A week ago

So labour are in with a major victory of about 412 seats but was it really. Labours vote share was only 34% vs Conservative 24% and Reform in third by 14%.

How can 4M votes only return 4 seats (Reform) whereas 9.6M votes return 412. That’s FPTP stable but un representation.

Anyway..

They really need to look at why they are in power and strongly reconsider what they are about to do to the PRS; manifesto are mostly lies anyway so doing a U turn on S21 wouldn’t surprise anyone. The next 5 years is going to be bumpy for landlords. NRLA needs to pipe up and put Rayner on a sensible path. I’m looking forward to seeing S21 banned on day one the first manifesto promises to be broken.

dismayed landlord

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11:17 AM, 5th July 2024, About A week ago

Reply to the comment left by Jason at 05/07/2024 - 11:07Yes - I cannot wait for Monday when S21 are banned. After that we learn the true metal of the labour government. Or a simple return to the bull… of politicians ! Serving my last S21 today. And with luck can sell up completely this tax year. Not prepared to accept any more uncertainty and certainly not prepared to be told what I can do with my assets.

Beaver

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11:25 AM, 5th July 2024, About A week ago

Reply to the comment left by Jason at 05/07/2024 - 11:07
What normally happens after a labour election victory is that all the trade unionists committed to public ownership come out and call for nationalisation and all the communists crawl out of the woodwork and say that the labour party doesn't have to respect the election result either.

But you're right that 34% vote share isn't a mandate for extreme left wing policies and it needs to be remembered that even though this is the worst conservative election result in election history, labour has only just recovered from one of the worst labour results in election history 4 years ago. Keir Starmer has only won because there's an appetite for change stimulated by the likes of Liz Truss and because he's shifted the party towards the centre and right just as Tony Blair did.

In my view Keir Starmer would be well advised to move Angela Rayner "the red queen" from housing into something else where she can do less damage because he's got to try to survive two terms and if she is permitted to follow SNP-style policies they will backfire on him too soon. Also, because she bought her council house and sold it her attacks on the PRS look like hypocrisy. She has no credibility.
But whether he does this or not they haven't got their policies through yet.

That labour policy to force landlords to go to court and for the courts to decide whether the landlord's family would suffer more than the tenant's family was completely barking. That was extreme left-wing madness worthy of the SNP, who fortunately just got kicked out in Scotland. But at the moment we don't know whether they are going to do something that nuts and they can't get all their new legislation through quickly.

Stella

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11:42 AM, 5th July 2024, About A week ago

As Rayner can now do what she likes with no effective opposition we need strong organisations fighting our corner.
The only consolation is that Labour will reap what they sow and it may not be that pretty when more homeless people have to occupy our streets as a result of their policies.

Tom Jenkin

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15:13 PM, 5th July 2024, About A week ago

Reply to the comment left by Beaver at 05/07/2024 - 11:25
Labour actually won 9 million votes , only 57% of the electorate actually voted down 9% on 2019 .
It took 19800 voters to elect each Labour MP , 45,000 to elect each Tory MP , 47500 to elect each Limp Dem MP , 390,000 votes elect each Green MP and 900,000 votes to elect each Reform MP .

There are 47 million people registered to vote in parliamentary elections and Labour actually only won 20% of the vote but won 64% of the seats .

havens havens

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15:56 PM, 5th July 2024, About A week ago

with Labour winning big, it’s definitely shaking things up for landlords. Keir Starmer’s in as PM, and Angela Rayner’s gearing up to announce some housing policies soon. She’s been talking about building loads of new homes and changing up how the rental sector works, like getting rid of Section 21 evictions. But who knows how quickly all that will happen, right?

The housing market’s already feeling the pressure, with prices taking a little dip recently. The Conservatives really took a beating in this election, and even the Lib Dems made some gains. It’s interesting to see Reform picking up steam, too, with Nigel Farage leading the charge.

I’ve been hearing from folks in the industry, like Paul Shamplina from Landlord Action, who are predicting a rush of landlords serving Section 21 notices just to protect themselves before any new rules kick in. It makes sense—scrapping Section 21 overnight would be chaotic without fixing how courts handle these cases first.

Ben Beadle over at the National Residential Landlords Association seems cautiously optimistic, congratulating Labour while also stressing the need for fair reforms that don’t worsen the shortage of rental properties.

Oli Sherlock from Goodlord is spot-on about needing clear plans and consistent leadership in housing policy. We’ve seen too many changes in Housing Ministers lately, and stability is crucial for the sector.

It’s a pivotal moment for landlords and renters alike. How Labour navigates these changes will shape the rental market for years to come.

Gromit

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7:12 AM, 6th July 2024, About 7 days ago

Reply to the comment left by Jason at 05/07/2024 - 11:07
Labour won't have the money to do many of their manifesto pledges, so they'll focus on the no cost pledges like abolishing Sec.21, requiring EPC "C", etc.

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