Renters (Reform) Bill changes make ‘little difference’ to most landlords

Renters (Reform) Bill changes make ‘little difference’ to most landlords

0:03 AM, 12th April 2024, About 2 months ago 3

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An industry expert is downplaying the impact of recent amendments to the Renters (Reform) Bill, claiming they will have minimal impact on most landlords and tenants.

Neil Cobbold, the managing director of PayProp UK, argues the changes announced before Easter ‘amount to very little in real terms’.

He suggests the core of the Bill remains unchanged, despite consultations with the industry.

‘The Bill is more or less intact’

Mr Cobbold said: “When you take a step back and look at the details, these new changes amount to very little in real terms – in fact, the Bill is more or less intact.

“The government has made some tweaks after speaking to the industry but in practical terms, nothing substantial in the Renters (Reform) Bill has changed for the majority of tenants and landlords.”

The Bill’s proposed amendments include delaying a tenant’s ability to give notice early in a tenancy and ensuring a functioning court system before ending Section 21 ‘no-fault’ evictions.

Also, student housing will be included in protections aimed at maintaining student housing availability.

Local authority licensing schemes are also under review.

‘Amendments were billed as a big announcement’

Mr Cobbold says: “Although these amendments were billed as a big announcement, there’s nothing here that is particularly groundbreaking.

“Waiting for reform of the court process before the abolition of Section 21 is something we’ve known about since the Bill was introduced.

“What will be key is the details of this assessment, which we have been calling for since the legislation was introduced.”

He adds: “The abolition of Section 21 has been a policy of every major party since the last election, so it has become a question of whether this government will abolish it or a future one.”

‘Until Section 21 is abolished’

He continued: “Until Section 21 is abolished, landlords will have to think in a slightly more structured way about how they actually evict somebody.

“Having to wait four months before you can give two months’ notice is effectively a six month wait – well it’s at least a six month wait now if an eviction notice is contested, and the matter has to be settled through the legal system. “The only material difference here is that tenants won’t be able to treat the PRS like an Airbnb lite, giving notice as soon as the tenancy begins to secure cheaper rents for a few months in a new location.”

‘Revising the legislation to protect student lets’

Mr Cobbold added: “Revising the legislation to protect student lets is something almost everybody is in favour of – students and landlords alike.

“If the Government didn’t take action there’d be a major problem for the new intake of students at the beginning of the academic year.

“And as far as the property portal removing the need for local authority licensing schemes is concerned, what the government has announced is only a review.

“What the industry is keen to see is the abolition of selective licensing schemes and HMO licences so there is consistency across England – although the question of how enforcement will work is less clear.”

Mr Cobbold also said: “I think these are quite balanced changes that the government is proposing to the Bill – nothing really contentious at all and certainly not a landlord’s charter, as some are claiming.”


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Comments

Paul Essex

12:43 PM, 12th April 2024, About 2 months ago

I guess they are referring to ex landlords and homeless tenants, everyone else is likely to see a huge impact.

Reluctant Landlord

13:04 PM, 12th April 2024, About 2 months ago

maybe it wont impact as many tenants and landlords as they think once it is enacted...
due to there being less LL's still in the PRS by this point, therefore less properties to rent, ergo less tenants...?
The fact that the RRB exists, and this embodies T's rights over a LL's right to fair possession in just timescale alone, means that the real implications are already being played out - right now.
LL's are selling up or being VERY strict who they let to now for fear of what is coming.
You could argue that the longer this takes to get through the parliamentary process, the implications will be such you don't actually need this legislation because of the damage to the PRS it has already caused!
The idea that this legislation was going to "bring in a better deal for renters”, is a joke because ultimately supply will have reduced because of government intervention and attack on LL's, before it even hits the statue books.

Michael Booth

12:47 PM, 18th April 2024, About 2 months ago

If it is has insignificant has you make out why have it.

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