Recommendations to government for a post section 21 PRS

Recommendations to government for a post section 21 PRS

9:33 AM, 25th May 2022, About 3 months ago 18

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The Lettings Industry Council (TLIC), formed Theresa Wallace from Savills (UK) Ltd and Kate Faulkner, has released a report which makes recommendations based on the expected changes to be introduced in the Renter’s Reform Bill. The report, released today (25 May 2022), aims to help the Government understand what can work in practice and to encourage a PRS that works for all.

The report considers what changes could be made to smooth the path for the abolition of section 21 notices, improvements to the court process, as well as ways to improve property conditions and help those locked in tenancies and unable to move due to financial constraints.

Some of the report’s key recommendations include:

  • Every tenancy should have a written tenancy agreement in place or at the very least a written Statement of Terms. In the absence of either of these then the Government’s model tenancy agreement should be used as the default agreement.
  • A review of the accelerated procedure is needed to reduce the listing of PRS claims and prioritise these cases so they can be taken out of the system without delay.
  • Clarifying the route for dealing with abandonment cases, enabling a process without recourse to the court to further reduce unnecessary court cases where a tenant has clearly already left the property.
  • Prioritising cases with high or persistent rent arrears, dropping review hearings, and employing more judges will further reduce the workload and strain on the courts.
  • Mediation should be a recommendation in all cases, other than where there is evidence the tenant cannot afford to pay the rent. Costs can be kept to a minimum and could reduce court hearings by up to 25%.
  • Government should consider its own bond/loan solution or finance local authorities to issue their own bond guarantees. This option could be available solely for tenants on Universal Credit and/or in receipt of specified benefits to ensure that the deposit problem is specifically targeted to the right demographic.
  • By embedding use of the Unique Property Reference Number (UPRN) within the Renter’s Reform Bill discrete data points across different existing public and private databases can be joined together. Property safety records can be captured and collated within a property portal, to form one comprehensive safety record delivering a safe property at low cost. A property portal linked to a landlord redress scheme will ultimately provide a Landlord Register enabling direct communication with landlords and education on property safety, legislation and better remote enforcement.
  • A Regulator for Regulation. The sector is like a puzzle with lots of pieces that need to be joined up. A regulator would tie all of the pieces together – tenants need one portal door to enter which then signposts them to where they need to go.

Theresa Wallace, Chair of The Lettings Industry Council (TLIC), said:

“Each year, in an attempt to combat some of the issues experienced in the private rented sector, including sub-standard properties, rogue and naïve landlords, and untrained agents, more and more legislation has been introduced, confusing even diligent landlords with the complexities in providing a rental home.

“So far, these changes to legislation, which often come at a financial cost to the landlord, have just compounded the problems further and is a core reason given for why landlords are exiting the sector, leaving a shortfall of available rental properties.

“As a result, in 2022 we are experiencing the biggest crisis we have seen surrounding the shortage of rental property.  We need to encourage investment into the market and that includes private landlord investment.

“The Renter’s Reform Bill provides a once in a generation opportunity to improve the lives of Renter’s.  However, in order to achieve maximum impact and create true strategic change, we believe it is crucial to phase in these significant changes in a considered manner over a period of time, avoiding unexpected unintended consequences which only hurt those we are seeking to protect the most – tenants.

“This report seeks to find a balance between encouraging investment in the sector to increase available homes and ensure they are of consistent good quality through natural supply and demand competition.”

You can read the full report HERE



Comments

Chris Bradley View Profile

10:40 AM, 25th May 2022, About 3 months ago

Nothing in this article makes me want to invest, only sell up quicker.

it just looks like the government wants a landlord register, where all the safety checks are recorded centrally so that any deviation from the due date etc, can be easier to prosecute.
There is no mention of a similar register for Tenants, where they can sit courses on how to look after a property, how to change a lightbulb, or how to identify and deal with mould caused by condensation from disabling extractor fans and switching of heating to save costs, which damage landlords property, or even courses on the improtance of paying your rent, so that you don't get evicted

Simon Orr

11:01 AM, 25th May 2022, About 3 months ago

I think the Gov are failing to see this is a business we are running not something for pin money ! we take substantial risks with our investments , swamping us in red tape EPC C then lots of boiler replacements heat source pumps the don't work...
Currently Hydrogen is being trailed in the North East 20%80% mix...some common sense surely needs to prevail , or there will be a huge lack of housing and huge rent rises

Monty Bodkin

11:16 AM, 25th May 2022, About 3 months ago

"This report seeks to find a balance between encouraging investment in the sector to increase available homes"

How does any of this report encourage investment?

NewYorkie View Profile

13:00 PM, 25th May 2022, About 3 months ago

There are already 168 pieces of legislation affecting the PRS, and not one piece is there to protect the rights of landlords. The problem is the legislation has been created piecemeal, isn't joined up, and ultimately, there are insufficient resources to enforce it. How will yet another piece of legislation be any different?

Luke P

14:25 PM, 25th May 2022, About 3 months ago

It still feels very much like a backward step...let's consider why S.21 and Accelerated Possession came about in the first place...it was to prevent every single case going to Hearing...because that's, largely, impractical and slows the whole process/system/'merry-go-round' down.

Now we want to go back the way and make everything go before a Judge. The Courts like to think they hold a privileged position in that they can't take as long as the choose/is necessary and so have no incentive to 'hurry up'. This is madness and a return to pre-1988. It's literally watching (bad) history repeat itself. In another 30 years and a stagnant rental market, politicians that haven't even been born yet will be scratching their heads and wondering if they could perhaps implement a system that could be done on paper to alleviate the (seemingly ever-increasing) Court backlog).

Sigh!

LaLo

15:57 PM, 25th May 2022, About 3 months ago

I’ve said before - I’m sure they’re chasing tenants votes as they outnumber L/Ls roughly 4 - 1 simple! Write/email Michael Gove direct and give your opinion as I have done re’ section 21 and EPC ‘C’. Put his name into Google and e-Mail addresses will come up.

NewYorkie View Profile

16:57 PM, 25th May 2022, About 3 months ago

Reply to the comment left by Luke P at 25/05/2022 - 14:25
Before I retired, I was selling a software solution for virtual hearings, and two of my use cases in the UK were the backlog of eviction hearings, and mediation.

18 months on, and the backlog is even worse, and the courts are yet to roll-out suitable technology to help reduce it.

Luke P

19:47 PM, 25th May 2022, About 3 months ago

Reply to the comment left by NewYorkie at 25/05/2022 - 16:57
Why am I not surprised. And all those on-paper S.21 cases are now gonna be loaded on top of the backlog on the form of S.8 cases 😤

Old Mrs Landlord

23:15 PM, 25th May 2022, About 3 months ago

Reply to the comment left by NewYorkie at 25/05/2022 - 13:00
If you had taken the trouble to read the report you would know that is exactly what it says and what it seeks to change.

Peter Gill

9:35 AM, 26th May 2022, About 2 months ago

Propaganda from the far left has been allowed without proper challenge to trick the gullible into believing that landlords are going around issuing S21 Notices on a whim, when nothing could be further from the truth.

No landlord in their right mind would want to lose a good tenant, but where is our defence against our accusers. We all know that most of the time “a no fault eviction” is a fallacy but where is the statistical evidence in support of what every landlord knows, and that is that 99% of S21s are served for a reason.

Perhaps it would be prudent for the Government to keep S21s on the statute books for a couple more years with the proviso that a reason is given by the landlord, then at least an informed decision could be made whether to scrap it or not.

Peter Gill

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