Tenant evictions surge as rent reforms backfire

Tenant evictions surge as rent reforms backfire

0:05 AM, 22nd April 2024, About 2 months ago 15

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Tenant evictions are on the rise as landlords look to avoid the imposition of the Renters (Reform) Bill which will abolish Section 21 ‘no-fault’ evictions, the Daily Telegraph reveals.

The newspaper has analysed the number of property repossessions that are carried out by bailiffs and found that landlords are increasingly removing tenants.

It says that the Conservative’s push for the new Bill is having an adverse effect on investors as the number of Section 21 evictions has hit a five-year high.

These ‘no-fault’ evictions have risen by a third since 2022.

Bill is already having ‘unintended consequences’

The Conservative MP for Dudley North, Marco Longhi, told the newspaper that the Bill is already having ‘unintended consequences’.

He said: “I am a landlord and have been for two decades. I have consistently said that, whilst well-meaning, the Renters (Reform) Bill is bad for tenants.

“At a time when there is already insufficient supply to meet demand for rented property, this legislation is reducing the number of properties available for rent because landlords are increasingly finding it not worth their while.”

He added: “The consequence of lower supply and higher demand is creating very high rental prices, and rather than supporting really tough market conditions for tenants the Bill is actually making it worse for them.”

Highest number of evictions in five years

The Bill returns to Parliament on Wednesday, and the Telegraph says that official figures reveal that in the three months to December, 2,671 tenants were evicted by bailiffs.

That’s the highest since April 2019 – when the Government first unveiled a review into no-fault evictions.

The news follows criticism of Conservative MPs, many of whom are landlords, who were accused of ‘watering down’ the Bill.

The MPs say that the Bill needs amending to be fairer for landlords and help keep them in the private rented sector.

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0:37 AM, 22nd April 2024, About 2 months ago

Fairness must start with both Landlords and Tenants being registered in the new Portal. There's got to be accountability for all not half.

Cider Drinker

9:30 AM, 22nd April 2024, About 2 months ago

The Renters (Reform) Bill will, no doubt, be at least partly responsible for some of the Section 21 Notices and subsequent evictions. However, it’s not a direct relationship.
Some landlords will be exiting the sector for other reasons.
Many of us are either retired or nearing retirement. Selling up makes sense as we look for a more sedate life.
Section 24 is a killer. BTL is no longer attractive to higher rate taxpayers and even those paying the basic rate of tax could become higher rate taxpayers because if Section 24 - even if there rental properties are making a loss. The freezing of tax thresholds sucks more of us into the higher rate tax band. Section 24 was less significant when interest rates were near zero.
Interest rates have risen sharply. Whilst they hover around long-term averages, many of us got used to very low rates and expected any return to normal to be much slower.
Minimum wage has risen by 76% in just ten years. This is inflationary as tradespeople need to charge much more in order to survive.
So called tenant activist groups (aka known as charities) spread misinformation and pitch landlords as being evil money-grabbers. This constant onslaught encourages more landlords the leave the sector. These groups do a disservice to the very tenants they claim to support.
It’s not easy getting possession today, even with Section 21. It can often take a year or longer. The claim will fail if the judge can find any small technicalities with which to reject the application.
The Renters (Reform) Bill may well be the final nail in the PRS coffin. The younger generation have little hope of buying a home of their own and they struggle to find an affordable rental property because the government, supported by the likes of Shelter (who don’t provide shelter to anyone), has changed tax rules and regulation so much that rents NEED to be higher.
We are not attracting a new generation of landlords. The result will be that those that can afford to buy a home will be forced to buy one and those that can’t (afford to buy a home) will at the mercy of social housing and temporary accommodation for their entire adult lives.
Temporary accommodation is bankrupting the country. All because the government refused to protect our borders.


11:40 AM, 22nd April 2024, About 2 months ago

Reply to the comment left by Cider Drinker at 22/04/2024 - 09:30
I dont think they really want to attract a young generation of Landlords. They have put their faith in Build to Rent.
That is why we are treated differently on every level. Section 24 and an 8% surcharge on CGT now reduced to a 4% surcharge and the loss of other allowances and the RRB which means we lose control of our assets.
When all this is accomplished then Black Rock and others can rule the roost and their shareholders will be very happy.
Not good news for tenants!

Grumpy Doug

12:48 PM, 22nd April 2024, About 2 months ago

Reply to the comment left by Stella at 22/04/2024 - 11:40
I agree with all your comments .... BUT, and this is a very big BUT, the BTR sector was put on the saviour pedestal back in the days of low inflation and near zero interest rates. Let's be honest, BTR is just another asset class for large financial entities. The fact that there's bricks and mortar is simply a by-product. Fast forward to 2024, in an era of higher interest rates, higher materials and labour costs, and an increasingly hostile political framework that now openly discusses rent caps and controls, those large financial entities are finding other, more attractive, uses for their shareholders' cash.
One's only got to look at Scotland, where BTR has all but dried up, to see what is coming to the rest of the UK with Sir Kneeler and the Ginger Growler in charge. Already telling that L&G has put it's housebuilding division, Cala, up for sale.

Fed Up Landlord

13:18 PM, 22nd April 2024, About 2 months ago

The lefty liberal Rishi Washy Sneer Snake Charmers and Bovver Booted politicians of all persuasions are the foil.

The left orientated institutions like education, civil service, justice, trade unions, so called " charities" social media, the Church etc are the ideological
" arms factories" of the woke elite, producing the weaponry with which to attack the moderate thinking and moral attitudes of the UK. Denigrating and isolating them to ensure silence and compliance.

Landlords and their private ownership of property are casualties in a continuing war of socialism versus capitalism. And the socialists are winning. Or have already won.


14:06 PM, 22nd April 2024, About 2 months ago

Reply to the comment left by Grumpy Doug at 22/04/2024 - 12:48
Very interesting

I had not taken a close look at what is happening in Scotland with BTR.

Lets hope that the government find beds for all the homeless and vunerable people who will need housing.

Jonathan Willis

17:50 PM, 22nd April 2024, About 2 months ago

Reply to the comment left by Cider Drinker at 22/04/2024 - 09:30
"at the mercy of social housing" what social housing? They haven't been replacing what they sold off.


20:02 PM, 22nd April 2024, About 2 months ago

Reply to the comment left by Fed Up Landlord at 22/04/2024 - 13:18What has snake charming to do with a bankrupt government with no build policies?

Nikki Palmer

9:42 AM, 23rd April 2024, About 2 months ago

"Highest number of evictions in five years".....by bailiffs!

That's because it is now common knowledge that any tenant being asked to leave are approaching their local council for assistance who in turn are telling them to stay put until the bailiff turns up.

Not only is this increasing Landlord's costs and stress levels of all concerned, but it also defers the problem of the lack of housing available for a few more months but ultimately highlights the fact that the councils are unable to assist.

Mr Blueberry

13:51 PM, 23rd April 2024, About 2 months ago

Reply to the comment left by Stella at 22/04/2024 - 11:40
@Stella - but the problem with BTR is they are typically becoming more and more expensive than comparable privately rented properties, so the young generation will find it harder to save up to buy their first home.

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