Shelter demands 12 months of no re-letting in new Bill

Shelter demands 12 months of no re-letting in new Bill

9:50 AM, 11th July 2023, About 10 months ago 56

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The Levelling Up, Housing and Communities Committee has been told that the Renters (Reform) Bill needs strengthening to prevent landlords from using a loophole to evict tenants for no reason.

The follow-up meeting heard that under the proposals, the law will enable landlords to take possession of their rented property when they or a family member want to move in or to sell it – and there will be a period of three months when the property cannot be re-let.

However, Shelter’s policy manager Tarun Bhakta told the committee that the Bill offers ‘a backdoor to ‘no-fault’ evictions’ and he said the no re-letting period should be longer.

He told the committee: “This is a big concern of ours, at the moment a landlord won’t be allowed to put the property back on the market for three months.

“We don’t think that is a strong enough disincentive when misusing those grounds, particularly when you consider that it might be quite difficult to design quite robust evidential requirements for the landlord moving in. It’s really difficult to imagine what that would look like, but we want the government to try their best.”

’12 months for no re-letting is what we are recommending’

He added: “We think there needs to be strong disincentives via the no reletting period so 12 months for no re-letting is what we are recommending.”

And when tenants believe they have been wrongly evicted, tenants should be able to seek compensation and rent repayment orders – and tenants should be given an incentive to bring a case of wrongful eviction to a local authority.

In response, an irritated Ben Beadle, the chief executive of the National Residential Landlords’ Association, said: “This isn’t roulette. It gets tested in court, it goes before a judge, a judge will need to be satisfied that the landlord is telling the truth about selling the property.

“And the last time I checked, if you lied in court, it was perjury so I would say that was a pretty strong disincentive.”

He added: “I don’t know what it is what my friend from Shelter wants to see, whether it is waterboarding or public flogging, but a financial penalty of £30k if you re-let sounds to me to be a lot of money and I think we have to look through the lens of why landlords are selling and the confidence levels in the sector are where we should start rather than having 12 months punishing waits and lots of extended notice periods.”

Turning to Mr Bhakta, Mr Beadle said: “And, actually, do your clients a great disservice.”

Below is Mr Beadle’s response to Mr Bhakta’s comments:

Watch the full committee exchange on Parliament.tv


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Comments

Seething Landlord

16:23 PM, 11th July 2023, About 10 months ago

Reply to the comment left by DSR at 11/07/2023 - 14:38
Rent arrears will also be a mandatory ground.

Seething Landlord

16:27 PM, 11th July 2023, About 10 months ago

Reply to the comment left by Mick Roberts at 11/07/2023 - 14:07
They only want it to be not available for rent for a year if the landlord has gained possession on the grounds that he wishes to sell or move into the property himself.

Reluctant Landlord

17:11 PM, 11th July 2023, About 10 months ago

Reply to the comment left by Seething Landlord at 11/07/2023 - 16:23
possession ONLY mandatory where a tenant has been in at least two months’ rent arrears three times within the previous three years, regardless of the arrears balance at hearing.

So you have a tenant that doesn't pay the rent for 6 months? Its not mandatory.

Doesn't pay for 6 months, then pays for one month then doesn't pay again for 9 months? Not mandatory

Doesn't pay for for 6 months, then 9 months then year 3 another 6 months no rent. Yes mandatory.

Are you seriously going to wait that long???

Rod

17:46 PM, 11th July 2023, About 10 months ago

Shelter’s policy manager, Tarun Bhakta, was very grumpy that the government hadn't rushed their proposals through parliament, so we could throw more fuel on the housing crisis. He didn't think it fair that tenants would not get the welcome mat if they had a CCJ for rent arrears or ASB.

Ben's opening comments highlighted that the main problem is the lack of supply -both PRS and social. He also highlighted mortgage rates and tax treatments are helping landlords decide to leave the industry.

iHowz will be meeting Ben and other members of the NRLA team next week. This follows our recent successful meeting with parliamentarians to discuss our proposal to help retain S21.
https://ihowz.uk/the-unintended-consequences-of-losing-the-section-21-notice/

The minister was less than inspiring, relying on her staff to answer any factual questions, with the committee questioning why DLUHC had not taken on their proposals for a minimum period of 4 months before notice could be served. They went on to highlight the mess that the courts are in with landlords waiting over a year to rid themselves, and residents, of ASB tenants.

What magic tree does Shelter think pays landlords obligations (mortgages, maintenance, compliance and taxes) while they protect tenants who wilfully withhold rent and worse?

iHowz continue to urge the government to concentrate on the measures which all parties agree will actually benefit the sector:
- Property portal
- Court reforms
- PRS ombudsman

Ending ASTs and retiring the S21 process will not remove substandard properties from the market - targeted compliance using the portal and ombudsman are more effective tools.

Shelter say they want more certainty to support longer tenancies, yet are willing to sacrifice the existing tenant protections given by the AST (6 months minimum term) and the compliance conditions to serve a S21 notice.

It's going to be an interesting autumn as the RR Bill finally makes its way though parliament. In the meantime, enjoy your holiday in the Airbnb which might have been a rental home until S24 made it unprofitable.

Seething Landlord

17:54 PM, 11th July 2023, About 10 months ago

Reply to the comment left by DSR at 11/07/2023 - 17:11
I suggest that you refresh your memory about what the new Bill proposes.

You are referring to the new ground 8A and overlooking the fact that ground 8 remains substantially unchanged apart from the new provision in relation to arrears caused by delays in receipt of universal credit.

Rent arrears of two months at the date of service and the date of hearing will still be
a mandatory ground.

Dickie Withers

18:29 PM, 11th July 2023, About 10 months ago

So my son comes back from Australia with he's pregnant girlfriend. They have nowhere to live. I evict a tenant let my son live in the property. He gets a fantastic paying job is able to buy his own house within 5 months but I can't relet my property for a further 7 months though
there is a housing shortage. Does make sense

david porter

18:46 PM, 11th July 2023, About 10 months ago

Once the tenants have gone will they engage a solicitor to go into battle?
Just spin it out and they will prefer to take the money down the pub!

Seething Landlord

19:57 PM, 11th July 2023, About 10 months ago

Reply to the comment left by Dickie Withers at 11/07/2023 - 18:29
The 12 month delay is simply what Shelter are lobbying for at the moment. The Bill proposes a three-month period.

It may well be that the Bill will in its final form cater for the type of situation that you envisage, however unlikely it might be.

Rod

7:30 AM, 12th July 2023, About 10 months ago

Reply to the comment left by Seething Landlord at 11/07/2023 - 17:54
What I was referring to was the current protections afforded to tenants who are substantially meeting the terms of their tenancy, which protect them from S21 eviction in the first 6 months - even if the tenancy is agreed for a shorter period.

I appreciate that various S8 grounds can be used earlier if required, including the mandatory ground 8 for rent arrears.

dismayed landlord

8:45 AM, 12th July 2023, About 10 months ago

Reply to the comment left by Seething Landlord at 11/07/2023 - 13:44
1 We do not know who would be doing the penalty side. 2. Think out side the box. Long term.

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