Renters’ Reform Bill – Mortgages and RGI?

Renters’ Reform Bill – Mortgages and RGI?

13:40 PM, 23rd June 2022, About A day ago 6

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Hi Everyone, Has anyone received any information/feedback regarding what mortgage and Rental Guarantee Insurance (RGI) companies’ thoughts are with regards to the proposed new legislation, The Renters’ Reform Bill?

I expect RGI insurance premiums will skyrocket and will certainly not cover ‘benefit tenants’ (as it currently does not). I also foresee mortgagees starting to leave the marketplace in droves, curtailed with the eradication of s21, and tenants on benefits which negate their current T’s and C’s.

Being a Landlord in the not-too-distant future is becoming even more of a nightmare and this new statute will make it unquestionably untenable to carry on!!

Ann



Comments

Ian Narbeth View Profile

9:44 AM, 24th June 2022, About 16 hours ago

Ann
If, and it is a big if, Government is true to its word and makes it easier and quicker to evict for rent arrears (and persistent arrears) then section 8 will help. Most of us have survived the moratorium on evictions during the pandemic without mortgagees throwing in the towel.

If premiums go up, it is likely rents will also. Eventually, Mr Gove will see what are the natural consequences of "conservative" policies. Being a highly intelligent man does not make him wise and we need some wisdom in Government at the moment.

Ann Shaw

11:31 AM, 24th June 2022, About 14 hours ago

Hi Ian,

Thank you for your comments.

I doubt very much that the new proposed s8 (whatever it might be), will be a seamless speedy process in order to evict a bad tenant.

Yes, you're right, mortgagees didn't throw in the towel through Covid. However, that was very much a transient state and not a statutory change to the Housing Act which is coming with the eradication of s21.

I honestly cannot see the Government back-tracking on s21 and can only see droves of Landlords leaving the marketplace (as we are already doing so). Mortgagees either leave the sector entirely and/or products become less attractive with higher rates (to negate potential losses) and harder to obtain.

All I can see is doom and gloom - There is a BIG housing crisis coming the Government's way...

Monty Bodkin

11:34 AM, 24th June 2022, About 14 hours ago

Ian,
I think Gove has already worked out the consequences and doesn't give a damn.

Ross Tulloch

11:52 AM, 24th June 2022, About 14 hours ago

The court system currently is not fit for purpose in London. We Issued a section 8 the tenant did not vacate it took five months to get a date for the court hearing. On that date they granted eviction of the tenant two weeks later. But they took six weeks to write the letter to the tenant telling him they had to be out in two weeks and a further 10 days to post it.
Any way you can come to an amicable agreement without this would be worth a lot

Ian Narbeth View Profile

12:14 PM, 24th June 2022, About 13 hours ago

Reply to the comment left by Monty Bodkin at 24/06/2022 - 11:34
Monty, he may be pandering to Generation Rent and the likes of Shelter. However, hurting the people you are trying to help as well as harming the group (PRS landlords) that was probably the most solidly Conservative voting block in the UK is perverse in the extreme.

Freda Blogs

18:22 PM, 24th June 2022, About 7 hours ago

Reply to the comment left by Ian Narbeth at 24/06/2022 - 12:14
I fear that the Government will actively deny any measures to enable speed and efficiency in the tenant eviction process. It’s not in their interest to do so.

An tenant evicted for cause, such as rent arrears, might seek accommodation from another PRS Landlord, but many may migrate towards the SRS, and as we know, there’s very little available accommodation there. Councils have difficulty enough now performing their statutory housing duty – a rise in demand arising out of more evictions will simply swamp them even more.

Further, following removal of S21 and if evicted under S8, tenants may be deemed to have made themselves intentionally homeless – perhaps excluding them from the SRS - then who is going to let to them?

To me, this bill seems to be just for headline grabbing, providing platitudes to the activists and vote seeking – no joined up thinking on how it will operate in practice.

Far better for the Government to continue allowing PRS landlords to bear all the pain and cost housing the bad tenants. So I’m not holding my breath that evictions will get easier any time soon.

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