Michael Gove discusses his ‘once in a generation’ Renters’ Reform legislation

Michael Gove discusses his ‘once in a generation’ Renters’ Reform legislation

14:03 PM, 17th May 2023, About 11 months ago 8

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The housing secretary Michael Gove has spoken for the first time about the Renters’ Reform Bill and what the potential impact of it will be on landlords and tenants.

Speaking on Radio 2’s Jeremy Vine show, Mr Gove was asked what the problems with section 21 were.

He replied: “The problem with no-fault evictions these so-called section 21 evictions is that they are used by a small minority of rogue landlords to intimidate tenants.

“So, when you have tenants living in sub-standard housing and they may raise questions about damp or mould, sometimes you have some landlords who say, ‘Look, if you carry on complaining like this you are out.”

However, there was no mention by anyone that revenge evictions are already prohibited under the Deregulation Act.

‘The same difficult landlords will also use section 21’

He continued: “It is also the case that some of the same difficult landlords will also use section 21 to say to people, ‘We are going to put your rent up and we are going to put it up at an extortionate level and again, if you complain you are out’.

“And that uncertainty, that potential for intimidation which I say is restricted to a small minority and obviously for the tenants affected it means they can’t raise their concerns and get the fair treatment that they deserve.”

When asked whether the abolition of section 21 would make it more difficult to evict tenants and make life more difficult generally for landlords as a result by Jeremy Vine, Mr Gove said: “No, I think it’s also the case that this legislation will make it easier for the overwhelming majority of landlords who do a brilliant job.”

He said that the country needs a ‘healthy private rented sector’ and added: “It’s also the case that we take steps to ensure that if tenants are antisocial that the landlord can evict them more quickly and also if tenants are persistently and deliberately evading their responsibility to pay their rent, then they can also be evicted more quickly, as well.”

How landlords can prove that their tenant has been antisocial

Mr Gove was then asked how landlords can prove that their tenant has been antisocial and he replied: “In the same way that you would for any type of antisocial behaviour, you can refer it to the courts and, of course, we are not talking about the trivial stuff, we are talking about the type of behaviour that actually causes problems for other residents, other tenants as well.

“The courts are well used to deciding whether or not someone has been deliberately and consistently antisocial.”

The housing secretary was also asked whether there was anything in the new legislation that would help landlords run their businesses, Mr Gove enthusiastically said: “As well as making it easier to get rid of antisocial tenants and, indeed, and to ensure that tenants do not play fast and loose when it comes to paying their bills, it is also the case that the new Ombudsman that we are creating is a way of making sure that short of actually going to court, you can have some of these disputes resolved.”

‘Creating a property portal across the country’

He continued: “We are also creating a property portal across the country which makes it clear what the obligations on landlords are because one of the concerns that landlords have raised with me is that you have some local authorities that have different rules from others on what landlords are expected to do.

“And what they want is a degree of uniformity and coherence which both reinforces the good reputation of the private rented sector but also avoids confusion.”

Mr Gove also confirmed that landlords will no longer have the opportunity of doubling the rent for a tenant they do not like, and he also highlighted to Jeremy Vine that rent increases in the PRS have been lower than the rate of inflation.

If there was a rent rise that was ‘way out of whack’

He also said that if there was a rent rise that was ‘way out of whack’ this would be an issue for the Ombudsman, and then a tribunal.

When asked about the legal right to have a pet in a rented property, Mr Gove said he was very ‘pro-pet’ and ‘so are the overwhelming majority of people in this country’.

He said that the right of a tenant to request a pet is a ‘fair one’ and he said a landlord can refuse a pet that considers the nature of the property and the ‘nature of the pet’.

He also underlined that the responsibility of paying for pet insurance will be the tenant’s so the landlord can claim for damage to the property.

Whether landlords can advertise ‘No pets, no-one on benefits’

When asked whether landlords can advertise ‘No pets, no-one on benefits’ Mr Gove gave a simple answer of ‘No’.

A landlord sent a comment into the show who said he was frustrated and was now selling five flats because he was fed up with people telling him what to do.

Mr Gove responded: “If a landlord does want to sell, I can entirely understand their reasons for doing so.

“But the relationship between the landlord and tenant is an important one. Landlords care not just about their properties but also about their tenants.”

Mr Gove also told listeners that the number of private homes to rent has doubled over the last 20 years and now accounts for one in five homes in the country.

He also said that the new legislation is putting both landlords and tenants in a stronger position and urged landlords to look at the legislation carefully.

Section 21 ‘no-fault’ evictions

The chief executive of the National Residential Landlords Association (NRLA), Ben Beadle, was also on the show and came under fire about the existence of section 21 ‘no-fault’ evictions and whether he thought they were right.

Mr Beadle defended a landlord’s right to use section 21 notices and said that the alternative of using section 8 means going to court.

He said that by using section 21, landlords have an easy route to regaining possession of their property and most tenants will willingly leave.

Not using section 21 as ‘one would expect’

Mr Beadle also said he accepted Mr Gove’s argument that there are some landlords who are not using section 21 as ‘one would expect’ and insisted that if a landlord has an antisocial tenant or one in arrears, then it is the best route to use.

He also said that one of the grounds for eviction in future will be for a landlord to carry out extensive refurbishment of their property.

And when asked about the right for tenants to have a pet, Mr Beadle stressed that there needs to be understanding and offered an example of a tenant in a second floor flat wanting three dogs for a landlord to be able to refuse the request.


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Comments

Paul Essex

17:25 PM, 17th May 2023, About 11 months ago

So easier actually means almost impossible in regards to low level ASB.

Bristol Landlord

1:20 AM, 18th May 2023, About 11 months ago

All my properties are rented only as HMOs on a jointly signed tenancy agreement (AST) and usually to a group of 4 young professionals. As it stands when one tenant gives notice to leave it brings the agreement to an end. Usually I agree to a swap but occasionally I have asked the other 3 to leave as I need to do some major refurbishment.
What I’d like to know is how will it work when there is no longer an AST?
Are all 4 tenants going to be living there not as a group but as 4 individuals each with a separate agreement with me?
And if one leaves then will it be that I cannot reclaim the property if the other 3 also don’t leave?
What then happens if the remaining 3 refuse to admit a fourth sharer and each only want to pay his 25% of the rent?
This situation could keep going until there is just one original tenant in the property.
The whole situation is now extremely uncertain and I’m probably going to sell up asap whilst I still have S21 available.

JaSam

8:04 AM, 18th May 2023, About 11 months ago

"The problem with no-fault evictions these so-called section 21 evictions is that they are used by a small minority of rogue landlords to intimidate tenants. So, when you have tenants living in sub-standard housing and they may raise questions about damp or mould, sometimes you have some landlords who say, ‘Look, if you carry on complaining like this you are out.'"

And what's to stop them now saying the same thing? Instead issue a section 8 saying I'm going to sell the property. It can be marketed for free on places like Strike. Who actually follows up if the sale ever completes?

Don't get me wrong I agree with the intention of this Bill however a rouge is a rouge they will find a way around and good decent landlords suffer more hoops.

Helen Morley

9:05 AM, 18th May 2023, About 11 months ago

Completely agree with JaSam above.
Also, if it is the responsibility of the tenant to pay for pet insurance, how can the landlord claim on the policy? And what redress does the landlord have if the tenant stops the policy?
Has there been any comment on whether the new bill means that, in cases of court-mandated eviction, the local council will -or indeed will not- have the obligation to rehouse?

John

10:00 AM, 18th May 2023, About 11 months ago

This legislation is ill thought out and will ensure that more landlords sell up.
This government is trying to destroy the PRS and when Labour win the next election things will only get worse.
I have been a landlord for over 25 years and have always looked after my tenants and provided quality properties but I sold 2 flats last year where I couldn’t get the EPC to a C and am now seriously considering whether I want to continue as a landlord.

Dylan Morris

10:15 AM, 18th May 2023, About 11 months ago

How about this Gove creature explaining why I can’t deduct my mortgage interest as an expense ? But if I’m incorporated I can ? Why the difference ? That’s why I have to sell up Mr Gove.

Luke P

12:20 PM, 18th May 2023, About 11 months ago

Reply to the comment left by Bristol Landlord at 18/05/2023 - 01:20
A joint and several agreement means they are all responsible for the whole rent amount...there is no 25% 'share'.

TheMaluka

11:46 AM, 20th May 2023, About 11 months ago

Reply to the comment left by Luke P at 18/05/2023 - 12:20
Try convincing the tenants who only want to pay their share!

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