The Renters (Reform) Bill will harm tenants and landlords, warns property expert

The Renters (Reform) Bill will harm tenants and landlords, warns property expert

0:01 AM, 8th February 2024, About 3 weeks ago 27

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A property expert is warning that the Renters (Reform) Bill, which aims to end no-fault evictions and improve security for tenants, will have negative consequences for both tenants and landlords.

Chris Daniel, who has more than 20 years of experience in the property sector, said that the Bill will make it harder for landlords to regain possession of their properties in cases of rent arrears, anti-social behaviour, or damage.

He says that the current possession process is already ineffective and does not provide adequate means for property owners to control the misuse of their private properties.

And he warns that the bill will only worsen the situation by removing Section 21, which allows landlords to evict tenants without giving a reason if they provide two months’ notice.

‘Increase the cost of rented homes’

Mr Daniel of Possession Friend, a service that helps landlords with eviction cases, told Property118: “The Renters (Reform) Bill will reduce the supply and increase the cost of rented homes in the UK.

“Fewer properties will be available and rents will rise.”

He added: “If only tenants could realise the impending consequences that will affect them.”

Mr Daniel also debunked the accusation of landlords profiting by rent increases, saying that tribunals often award a higher rent than that challenged by tenants.

The portrayal of landlords in the media

However, Mr Daniel also criticises the portrayal of landlords in the media as being either anti-landlord and biased – or uninformed and misled by tenant campaign groups.

He says that coverage of the private rented sector needs to be reported by journalists with a ‘straight bat’.

Mr Daniel also highlights the shortage of housing, the gaming tactics of local authorities and the flawed Universal Credit system as being major issues for landlords to deal with.

There are also issues with tenants who ‘game the system’.

The shortage of rental accommodation

Mr Daniel also argues that the shortage of rental accommodation is not due to private landlords buying up housing stock, but down to councils and governments failing to meet tenant demand.

He outlined the gaming tactics of local authorities, such as deceiving private landlords on benefit placements, or advising tenants to breach possession orders, incur costs, and sustain a CCJ.

He also says that the government is effectively supporting councils to transfer their responsibility for dealing with anti-social behaviour onto landlords via licensing schemes.

Mr Daniel adds that landlords are also not discriminating against tenants on benefit, but it is the flawed Universal Credit system that landlords avoid, as it causes delays and uncertainties in payments.


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Comments

Al Shinder

19:19 PM, 9th February 2024, About 3 weeks ago

Ian's comment makes the most sense. I could never understand why Gove thinks that tenants will vote Conservative.

Jessie Jones

12:31 PM, 10th February 2024, About 3 weeks ago

Reply to the comment left by Kerry Jackman at 08/02/2024 - 17:55
Kerry, that sounds like an awful position to be put through. But if a landlord decides to sell up then the RRB is unlikely to ever stop this. For example, if the landlord needs long term care and has to pay for it, or if they die and the executors of the estate have to pay the inheritance tax bill. Or if the landlord loses his main job through ill health, thy are not eligible for any ill health benefits if they have more equity than £16k in a rented house, so will be forced to sell it or starve !
I am having to sell up some of my portfolio, not because of the increase in interest rates, but because the tax laws now mean I have to pay tax on the money that pays the interest, so would be running at a loss.
It is government tax and government policy which causes landlords to sell up.

JB

13:33 PM, 10th February 2024, About 3 weeks ago

Reply to the comment left by Kerry Jackman at 08/02/2024 - 17:55
The scrapping of section 21 and all the other restrictions in the Renters Reform Bill, will make things a whole lot worse for renters. The courts will be over run as all notices to leave will have to go to court - and the courts can't cope as it is now. This means non paying tenants will remain in the property for months and months. The landlord will need to make up their losses by putting up rent for good tenants - that's you Kerry. How, do you feel about that?
Many landlords will give up and sell so there will be fewer properties to rent.
If Labour get in, they will be even worse and aim to stop section 21 immediately - before the courts are reformed. Landlords with bad tenants will hemorrhage money and YOU will be paying to keep non paying tenants in their properties.
Good luck in your search for somewhere else to live. Things will only get worse.

Bristol Landlord

16:57 PM, 10th February 2024, About 3 weeks ago

Reply to the comment left by Ian Narbeth at 08/02/2024 - 14:16Ian, I agree that the likes of BlackRock are not interested in a bungalow in Burnley etc, and that what they want as tenants are the highest paid yuppies in their newly built “lifestyle” BTR homes in London, Bristol, Manchester etc.
What I’m talking about is HOW the corporations will get to the point of dominance in the upper tiers of renters.
They will not get there just by offering high priced accommodation to well heeled tenants and competing against ordinary landlords offering lower priced housing. No, they do not want to honestly compete on a level playing field but instead want a rigged market which works in their favour. To achieve this they have enticed the corrupt UK Govt to cause chaos in the PRS by driving out as many of their competitors as possible, (ordinary landlords), by reducing the amount of competing properties for rent (ordinary landlords selling up due to harassment by the Govt), all this leads to pushing up rents to as high as the market will bear.
Eventually the swanky BTR new builds the corporations own and manage will attract the most affluent tenants as those tenants will have less and less alternatives to rent.
I can even see the PRS being purposely split into two major categories, one of corporate landlords with expensive BTRs housing the most affluent tenants. The other camp being less well off, including social tenants, being housed by private landlords struggling to keep their rental properties running and not going completely broke while doing so.
And a Labour Govt will not change anything as it has just indicated in its recent “business” conference it will be extremely pro business, or in other words completely subservient to the demands of international corporations, such as BlackRock.
It will be just as anti small landlord as the current corrupt Tory Govt, but not for any ideological socialist reasons but purely of greed and corruption.
The upcoming Starmer lead Labour Govt will be just as corrupt and fascist as the current Sunak Tory Govt.
https://www.wsws.org/en/articles/2024/02/02/brfj-f02.html

Bristol Landlord

17:23 PM, 10th February 2024, About 3 weeks ago

Reply to the comment left by Bristol Landlord at 10/02/2024 - 16:57
And I should add to the above that the Renters Reform Bill, the scrapping of S21 eviction process, S24 tax changes (which only applies to personally and not corporate owned property), the chaos in the Courts and the expensive and lengthy process for a landlord to repossess his property etc etc is all part of the War on Landlords being conducted by the Govt in support of the takeover of the upper strata of the PRS by the corporations.

TheMaluka

17:40 PM, 10th February 2024, About 3 weeks ago

Reply to the comment left by Bristol Landlord at 10/02/2024 - 17:23
Surely the attack on landlords will be spun as "A special military operation"?

Bristol Landlord

17:50 PM, 10th February 2024, About 3 weeks ago

Reply to the comment left by TheMaluka at 10/02/2024 - 17:40Yes it will, and a dissenter will be deemed an Enemy of the State:)

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