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10:00 AM, 5th April 2024, About 4 weeks ago 22
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News that the Government is tweaking the Renters (Reform) Bill has been welcomed by landlords everywhere, not so much by the usual suspects, but this awful legislation really needs sinking.
The proposed changes, including the abolition of section 21 ‘no-fault’ evictions, do nothing to help the private rented sector (PRS) and only contribute to rising rents for tenants.
Homeless charity Shelter may condemn the government for this move to ‘water down’ proposals, but it’s their influence that’s leading to the abolition of Section 21.
This may be seen as a victory for campaigners and rogue tenants, but it’s a blow to the many responsible landlords who provide quality homes.
The consequences of this Bill could lead to an exodus of landlords from the PRS. And who will be blamed for this? The landlords, of course.
But let’s consider the facts. The number of landlords leaving the PRS is already on the rise. Is this what Shelter had in mind?
Interestingly, many tenants haven’t even heard of the Renters (Reform) Bill. Yet, campaign groups like Shelter claim tenants are clamouring for change.
Are most tenants really facing the issues these groups claim?
It’s also a worry that most landlords aren’t aware of the details of a Bill that effectively hands control from the property owner to the renter. This is unbelievable.
It’s concerning too when critics condemn Tory MPs for requesting amendments to the Bill. If these MPs are landlords, they bring invaluable experience to the table.
These MPs also represent large numbers of tenants and understand that pushing through legislation opposed by landlords will lead to increased homelessness and sky-high temporary housing bills, potentially bankrupting many councils.
This week, yet another survey revealed that tenants are happy with their rented homes. Did this make the national news? Of course not.
It’s easier for groups like Crisis to grab headlines with their ‘version’ of the truth.
Let’s not forget that the main cause of homelessness is a lack of council housing. And the leading cause of Section 21 evictions is rent arrears, damage to a property, or anti-social behaviour.
The anti-landlord lobby has hijacked the argument on abolishing fixed-term tenancies with their talk of abolishing ‘no-fault’ evictions. If fixed-term contracts are a bad thing, why don’t they just say that? I guess they’d rather play games.
The Renters (Reform) Bill uses a broad brush to tar all landlords, both good and bad, with the same brush. Instead of penalising landlords, the time, effort and money should be spent on addressing the issue of bad landlords.
Let’s remove them from our industry and allow good landlords to continue providing quality homes to their tenants.
Unfortunately, this solution may be too simplistic for those pushing for the Renters (Reform) Bill – especially when there are already lots of laws in place to control the PRS.
Let’s focus on weeding out bad landlords (but not with useless selective licensing, obvs) while allowing good ones to continue providing much-needed housing for our communities.
But I’m left thinking: Are we in a situation whereby the heavily funded critics of landlords are creating a self-fulfilling prophecy?
Will they achieve their aims – claiming they represent tenants everywhere – while decimating the PRS? Will landlords remain to see what actually happens?
Or will we be watching from the sidelines having sold our rented houses, rents have rocketed, and tenants have nowhere to live and the government and Shelter, Crisis and Generation Rent are looking at their feet?
The bogeyman you have ridiculed, undermined and destroyed may well have the last laugh.
Except no one will be laughing because the situation you’ve created will be too awful to contemplate.
Perhaps the only silver lining is there won’t be a need for these campaign groups in the future because there won’t be any tenants to campaign for. Oh, the bittersweet irony.
Until next time,
The Landlord Crusader
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Cider Drinker
10:37 AM, 5th April 2024, About 4 weeks ago
The PRS needs reform.
Tenants deserve a better deal.
The best way to deliver a better deal for tenants is to reduce the tax and admin burden for landlords. Reducing these costs will see rents fall and a new generation of landlords will be attracted to the sector.
Increasing costs, regulation and risk for landlords is bad news for those people that don’t qualify for social housing but can’t afford to buy a home.
The number of properties available to rent privately is falling. The number of people looking to rent is rising. It doesn’t take a genius to see what the problem is.
I live in a street of 24 x 3, 4 and 5 bedroom houses.
One is a holiday let, one has been empty for going in 30 x years, one is a B and B and the only one has more than a single couple living in it as far as I can see. At least 4 x properties have single person occupancy. Maybe I’ll do some digging and confirm these figures.
Monty Bodkin
10:42 AM, 5th April 2024, About 4 weeks ago
Reply to the comment left by Cider Drinker at 05/04/2024 - 10:37
"The PRS needs reform."
No it doesn't.
It was highly satisfactory for the vast majority of tenants.
Making it better for a tiny few whilst worsening it for most is a bloody stupid idea.
Cider Drinker
11:02 AM, 5th April 2024, About 4 weeks ago
Reply to the comment left by Monty Bodkin at 05/04/2024 - 10:42It DOES need reform (in my humble opinion, of course).
If it didn’t, landlords wouldn’t be so disgruntled that they are leaving in significant numbers.
Reforms would include…
1. A fairer tax system for private landlords. How much do private tenants (indirectly) pay in tax through higher rents compared to social housing tenants and owner-occupiers?
2. Regulations need to be aligned with Social Housing and privately owned properties. There is NO valid reason that a privately rented property should need an EICR, EPC Rating E or better etc., when other tenure types do not.
3. Taxation should be fair. Mortgage interest absolutely IS a business expense. It’s outrageous that the Conservatives think otherwise. When Labour take control, I fully expect the tax credit (20% of interest paid) to be withdrawn. Watch this space.
So yes, I think that the PRS has been broken by government and government needs to fix it. At the very least, they should be honest about why they are destroying it.
TheMaluka
11:23 AM, 5th April 2024, About 4 weeks ago
Reply to the comment left by Cider Drinker at 05/04/2024 - 11:02
I agree that the rental section now needs reform for this government has really messed it up, wind back to the 1988 act and repeal most if not all of the subsequent legislation, then implement a sensible set of moderate reforms which should NOT include the abolition of section 21. Most importantly get rid of all the unnecessary red tape and leave landlords to manage their own portfolios. Then perhaps the housing situation would not be quite as dire as it is becoming.
Council housing should be aimed at homes for life whilst the private sector provides homes for shorter term needs.
Mick Roberts
12:24 PM, 5th April 2024, About 4 weeks ago
It's a blow to the tenants that when this comes in, they won't be able to move any more. Not that they can now, but even higher earning tenants are gonna' be unable to get anywhere.
Cider Drinker
12:30 PM, 5th April 2024, About 4 weeks ago
Reply to the comment left by Mick Roberts at 05/04/2024 - 12:24
If and when the RRB comes in, bad tenants that currently may receive a Section 21 Notice will instead receive a Section 8 Notice.
The reasons that landlords want their properties back will be known.
No longer will the likes of Shelter (who don’t provide shelter to anybody) be able to claim that nasty landlords evict good tenants for no reason (because landlords love to have the additional expense and void periods).
No longer will prospective tenants be able to claim that they were evicted from t(eir last home for no fault of their own (other than for the many ‘no fault’ reasons under Section 8 of the Housing Act). Bad payers and antisocial tenants will be unmasked.
I use the government’s Model AST. It includes a clause that allows me to sell, even during the fixed term. Bonkers.
Stella
12:41 PM, 5th April 2024, About 4 weeks ago
Reply to the comment left by TheMaluka at 05/04/2024 - 11:23
I agree
The problem now is that the people representing our interests were not around pre 1988 housing act when we did not have section 21
They have very little understanding of what it was like to be a landlord at that time and not have any control of your property plus the drop in value even if you could sell them.
The introduction of section 21 meant that tenants could now move around freely, it rejuvinated the economy and was a great success.
To think that a conservative government are happy to get rid of section 21 makes me think that they have a hidden agenda to enable BTR to take over.
Paul Essex
13:40 PM, 5th April 2024, About 4 weeks ago
Sorry tenants, we can no longer afford to house you....... and the new BTR only wants wealthy couples in tiny flats.
If you don't believe me just look at the fuss John Lewis made about including some 'affordable' units in their London build.
Mick Roberts
13:47 PM, 5th April 2024, About 4 weeks ago
Reply to the comment left by Cider Drinker at 05/04/2024 - 12:30
Yes if they take our Section 8 with the proof's they need.
I wish I had a model AST, mine are outdated now, Judge will probably laugh at 'em when he sees 'em.
Monty Bodkin
17:30 PM, 5th April 2024, About 4 weeks ago
Reply to the comment left by Cider Drinker at 05/04/2024 - 12:30
"antisocial tenants will be unmasked."
Unfortunately not.
The current and proposed ASB grounds are useless. Very few landlords will use it.