I can’t help but wonder what the future is for the private rented sector (PRS) when I look at the combined forces joined up against us.
It’s at these times I appreciate the French saying: ‘Plus ça change, plus c’est la même chose.’
Essentially, it means the more things change, the more they remain the same. And I get a gut feeling that despite all of the government’s efforts to improve the PRS, nothing will actually change.
We might see fewer landlords, more expensive rents but after all of the huff and puff, will we see more homes for rent? No, we won’t. Will we see better quality homes for tenants? No, because all of the responsible landlords will bail out.
It didn’t have to be this way because the 1988 Housing Act offered rights and obligations for tenants and landlords and the sector was reasonably regulated.
Big issue was when rights were breached
From what I’m told, the big issue was when rights were breached, neither side could really enforce their rights without spending money on a civil court dispute.
Even then, the costs and burden of proof were firmly with the landlord.
And, just like today, if the paperwork wasn’t perfect, then the landlord’s application was going to hit the buffers. Obviously, the tenant would be helped by a legal aid lawyer. That’s after they had sought advice from a tenant’s group, as well as Citizens Advice or the council.
Then, as now, enforcement is slow and for landlords not really adequate for what we need.
So, what has changed and what is likely to change?
The private rented sector was regulated
Precisely nothing. That’s because the private rented sector was regulated to an extent, but the rules weren’t enforced so bad tenants and rogue landlords could carry on as they saw fit.
The downside to that is that all landlords were tarnished with the same brush, and we’ve seen more laws regulating the sector, including licencing schemes from councils, but we don’t appear to be any further forward in having a fair and balanced regulatory framework for the PRS.
Over the years, we have seen some vigorous campaigning from various representative groups complaining about the sector being ‘unregulated’ which has led to various regulations and taxes that weren’t aimed at making things better but just made life more difficult for landlords. And less profitable.
As predicted, section 24 led to smaller landlords leaving the sector because, let’s face it, why bother running a small business when you still have to pay tax when you make a loss? No other business is expected to carry this financial weight.
Larger portfolio landlords and the big corporates have thrived and lots of smaller landlords have done very well too.
Opting for the better-quality tenant
But that’s mainly because these larger landlords are opting for the better-quality tenant and who can blame them because they don’t want their financial investment being trashed or have someone not pay rent.
That leaves tenants trying to find somewhere to live in an ever-shrinking pool of homes and with housing benefit not being increased for a few years means it’s even harder to find somewhere to live.
The situation also makes life easier for rogue landlords because they don’t care who they rent to, they just want desperate tenants who won’t complain about living in a sub-standard rented property.
That’s not the fault of landlords, it’s the fault of the government.
And in recent years we have seen growing numbers of landlords becoming fed up and deciding to move into the short-let sector but there’s no doubt there will be a clampdown on this too.
While short lets offer more profit but more work, there’s less chance of having a tenant not paying rent or trash the place.
Hassle and cost for landlords
One of the big issues I have with increasing regulation is over the hassle and cost for landlords, but the rules never seem to improve the lives of tenants.
While a council’s selective licencing scheme appears to be a great idea, I’ve mentioned before that they really aren’t because there is not enough stringent enforcement or checking of standards in rented homes.
Landlords pay, the council boosts its income, but tenants don’t really benefit.
And here we are, heading into 2023 facing a raft of new laws that will bring an end to Section 21 ‘no-fault’ evictions. The implementation of this bonkers law could see a tsunami of landlords quitting.
If a landlord can’t guarantee getting their property back when there are anti-social idiot tenants, or renters not paying rent, why bother?
Unmistakable sound of chickens coming to roost
Most of us bother because we care about our tenants but there’s the unmistakable sound of chickens coming to roost because the new rules that are aimed at protecting and helping tenants will have the opposite effect.
Less choice, higher rents, no social housing as an alternative and the ever-present rogue landlord who is supposed to disappear with new regulations will be sitting pretty knowing that their vile homes for rent will find ever-growing numbers of tenants willing to take them because there is literally nowhere else for them to live.
As they say, plus ça change – but not for the poor tenants who thought they would get better homes at a reasonable rent but actually get neither. And that really is the fault of the government who must be forced to own this mess they have created.
Until next time,
The Landlord Crusader