0:06 AM, 29th February 2024, About 9 months ago 7
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The government’s lack of solutions to resolve the rental crisis has led to a landlord exodus, according to one expert.
Gina Peters, head of landlord and tenant at Dutton Gregory Solicitors, says Michael Gove’s commitment to ban Section 21 ‘no-fault’ evictions before the next election has intensified landlord concerns.
Ms Peters emphasises the upcoming budget must offer measures to help address challenges in the private rented sector.
Ms Peters said: “The government’s actions and lack of solutions in the last year has quite frankly left the rental industry in limbo that has led to landlords simply getting out.
“There are many things that should be announced that can help buy-to-let landlords and provide peace of mind, however, Michael Gove has yet to provide any resolutions.
“We have seen some stability more recently in the market, which is positive, potentially due to the delays Gove had implemented with Section 21, and the various readings of it needing to go through Parliament, though more likely due to the steadying and lowering of interest rates.
“However, with his recent announcement and the fact he wants to prevent landlords from abusing the notice, it will incite more action to exit the lettings market.”
Ms Peters adds most landlords only use Section 21 when absolutely necessary and do not want to evict good tenants.
She said: “What the government does not seem to grasp, possibly being swayed by constant lobbying from tenant-supporting charities and organisations, is how outrageous it is for a landlord to use a mechanism that enables them to get their property back.
“The majority of landlords do not abuse Section 21, and only use it where appropriate. The whole point of buy-to-let is to get a return on investment so landlords want a tenant in their property.
“Removing the ability for landlords to use the notice will have an adverse effect. Landlords will simply fear they have very little authority over their property, therefore making them less likely to stay in the buy-to-let market.”
Ms Peters explains measures in which the government could take to tackle challenges in the PRS including reintroducing a reduction on Stamp Duty.
She said:“With the upcoming Spring Budget, the government can do many things to put buy-to-let landlords at ease. First, they should reintroduce a reduction on Stamp Duty on second properties purchased to let out, to make it more viable for landlords to have bigger property portfolios.
“Secondly, to bring back some sort of mortgage relief. With the younger generation unable to afford to buy a property, we need to make it easier for landlords to stay in the buy-to-let market as their importance in this key area of the economy has increased enormously.”
Ms Peters adds the supply and demand challenges are exacerbating the rental market.
“To tackle the exceeding demand of rental properties, the government also needs to incentivise getting out of the rental market and provide first-time buyers with something similar to Help To Buy.
“If there wasn’t such a demand, then we wouldn’t be in the current housing crisis we are facing, and the pending abolishment of Section 21 wouldn’t have such a big impact.”
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Barbaracus
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Sign Up9:45 AM, 29th February 2024, About 9 months ago
Oh look an industry expert disagrees with Michael Gove, Shelter (who don't actually shelter anyone) and Generation Rent.
I'm assuming they all think she's wrong, biased and will no doubt say she's a Landlord or something else without a shred of evidence.
Cider Drinker
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Sign Up10:20 AM, 29th February 2024, About 9 months ago
The evidence is clear to see. The simple threat of the Renters (Reform) Bill is promoting many landlords to reconsider their investments. It’s called Risk Management.
It (the RRB) comes at a time of increased interest rates, punitive and vindictive taxes, ridiculous and unnecessary regulation and a very real risk that property prices will fall in relation to inflation.
Add on the State-sponsored contempt for landlords and there can be little wonder that some landlords are leaving the sector.
The financial risks are significant for today’s BTL investor. Adding more risks isn’t likely to help.
Michael Booth
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Sign Up14:59 PM, 29th February 2024, About 9 months ago
If a landlord can't regain possession of their private property ,there is a fundermental problem with the whole system, this will make landlords leave the prs no ifsor buts , l am proof of it 25 years in the prs and will be leaving .
Disillusioned Landlord
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Sign Up15:35 PM, 29th February 2024, About 9 months ago
I just don’t understand why both politicians and these muppets from the rental charities can’t get their heads round the fact BTL is a business?
By continually alienating BTL landlords all they are doing is making things worse - it seems such a simple concept, yet they fail to get it?
I’ve been slowly selling up for the past few years now, and will eventually sell all my remaining properties because it’s just not worth the time, effort, hassle, expense and persecution I get, when I can sell up, put the money in a high interest account, have no grief or worry, and not realistically be that much worse off financially. The figures just no longer add up.
Mr Blueberry
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Sign Up8:07 AM, 1st March 2024, About 9 months ago
Hamptons report individual landlords have sold 294,300 more homes than they had bought since 2016. This is more than the total number of homes in either Manchester or Cornwall.
On the legislation going through in its present form it is estimated landlords will sell a further 1.5M properties over the following five years.
Alice Lander
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Sign Up11:11 AM, 2nd March 2024, About 9 months ago
The government and establishment want small private landlords gone. Their masters WEF tells you that you woll own nothing and we the plebs will live in 15 minute cities. Why do you think they are converting offices and shops into flats and HMO's. Bit by bit they will make it harder to be.a private landlord and this is from a Tory govt who are showing nothing but globalist socialist tendencies. Only big banks, institutions and large companies will be landlords.
Mr Blueberry
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Sign Up14:01 PM, 2nd March 2024, About 9 months ago
Policticians can play politics, charities can play anti-landlord rhetoric but it still leaves the only question worth asking that neither have answered thus far without compounding the crisis... where ARE millions and millions of people going to live in the future and who is going to pay to house them?