Landlords face a two-pronged attack on our livelihoods – and still we wait for the inevitable

It’s not often that politicians offer an opinion and get it right, and it’s probably even rarer when it is the Edwardian throwback Sir Jacob Rees-Mogg talking sense.

Of course, he hits so many nails on the head in his GB News monologue about the ‘socialist error’ that is the Renters (Reform) Bill that no one will take any notice.

There’s no doubt that that Bill, championed by the housing secretary Michael Gove, is a disastrous piece of legislation that will hurt both landlords and tenants.

Unfortunately, only landlords can see what is coming down the line and if this Bill does pass into law and Section 21 ‘no-fault’ evictions become reality then we will see a lot of fed-up landlords leave the sector.

That will leave tenants with fewer homes to rent – and the ones they do find will be more expensive.

In time, they will see what has happened to the PRS but will they equate this disaster to the government’s actions?

Hell-bent on portraying all landlords as bad

Probably not is the obvious answer since the media and tenant activist groups are hell-bent on portraying all landlords as bad.

As I said last week, the Section 21 ‘no-fault’ eviction process isn’t about being ‘no fault’ in reality – it’s a ‘no reason given’ to make the possession process quicker.

It also helps the tenant to an extent because the landlord doesn’t have to give details about arrears or anti-social behaviour.

By giving no reason, that tenant can go on to rent somewhere else.

But Rees-Mogg also touches on something I flagged up months ago about the Bill.

It is an unprecedented attack on property rights in this country.

This issue is still not being discussed or understood properly.

Landlords will effectively lose the right to say who can and cannot live in their property if they can’t get possession when needed. The courts will effectively decide.

Giving councils more powers to regulate short-term lets

This is why I liked what Rees-Mogg said about giving councils more powers to regulate short-term lets, such as Airbnb, in popular tourist areas.

These proposals are also a thinly disguised attack on property rights.

Rees-Mogg is right when he says that property rights are one of the four great pillars of our constitution, along with freedom of speech, the rule of law and democracy.

The new planning rules and the handy national register will reduce the supply of short-term lets and increase the price of rents.

There will be landlords who have left renting long-term to tenants for the holiday lets sector who must have read the Property118 story in despair.

I know I did.

Giving councils more powers over rented property? You must be joking.

They can barely run a bath, can’t run selective licensing schemes and their own housing stock is regularly slated by the Housing Ombudsman.

Are landlords living in a different universe?

Why give the inept clipboard holders more power over people trying to make something of themselves and help others? It’s crackers.

Two-pronged attacked on rented housing

That means there is now a two-pronged attack on rented housing in this country which will see landlords being deterred from entering or staying in the market – for both short- and long-term lets.

As Sir Jacob eloquently argues, Section 21 evictions reassure landlords that they will be able to get their property back.

This, in turn, guarantees an increased supply of rental homes and lowers prices for tenants.

Section 21 also helps tenants avoid the stigma of being evicted for cause, which can damage their future prospects of finding a new home.

We need as a sector to explain to politicians, the media and the likes of Shelter, that Section 21 evictions are not a tool of exploitation, but of mutual convenience and respect.

They allow landlords and tenants to agree on the terms and duration of their contract, without the interference of the state.

They also allow landlords to deal with problematic tenants, such as those who are antisocial or in arrears, without having to go through a lengthy and costly legal process.

The move to crackdown on short lets

But seeing the move to crack down on short lets, has made me really think.

Holiday lets are a legitimate and lucrative way of earning extra income, especially for those who have second homes or travel frequently.

They also boost the local economy by attracting more visitors and creating more jobs.

The prospect of creating more bureaucracy for the sake of it – a sure sign of central control policies – will create extra costs and hassle for property owners and discourage them from offering their homes for short-term lets.

And that will reduce the availability and affordability of accommodation for tourists and damage the tourism industry.

Based on the false premise that the PRS is the cause of the housing crisis

Let’s face it, most landlords know the Bill is based on the false premise that the PRS is the cause of the housing crisis, and that more regulation and intervention is the solution.

The real cause of the housing crisis is the failure to build enough houses to meet the growing population demand, especially in areas of high growth and opportunity.

The real solution is to make it easier for people to let properties, rather than harder, to boost supply and bring prices down.

And as Rees-Mogg says, the Renters (Reform) Bill is a socialist error that will hurt renters, landlords and the economy.

It should be scrapped.

Landlords should unite and oppose this Bill, and demand that the government respects our property rights and supports our vital role in providing housing for millions of people.

It won’t happen and when the PRS starts to shrink – I mean with huge numbers of rental homes being removed – and no alternative housing being built, will our critics apologise and help us return?

That’s when my crystal ball clouds over. Probably with the tears of landlords wondering what they ever did wrong to get this level of treatment?

Until next time,

The Landlord Crusader

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