9:47 AM, 31st May 2024, About a month ago 32
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Other than Ben Beadle, are there any landlords who will be mourning the demise of the Renters (Reform) Bill?
It was unwanted by landlords and agents; it would have brought destruction and the big issue I warned about when the final version began its rocky route through Parliament didn’t come to pass.
That’s the effective handing of control from the property owner to the tenant. Absolutely outrageous, and from a Conservative government too.
But wait! We still have to endure what the political parties have planned for the private rented sector when they unveil their manifestos.
I’m sure none of it will be pretty – especially the offering from Labour.
None of them have even hinted as to what they would do if elected – and I’m guessing there’s a good reason for that.
On the horizon, we have the ‘delight’ of Labour’s intentions which might include the long-held promise to abolish section 21 ‘on day 1’.
But will they put this into a campaign promise?
Here we are looking at a General Election when Labour must make itself look electable.
That means no more sixth-form politics and no spouting off when there’s no comeback – one of the joys of having ‘luxury’ opinions when they don’t affect you.
However, Labour now faces a real test after years of slagging landlords off.
And it’s the prospect of landlords selling up once we see what they might have in store for us, so they might think twice.
Until Rishi fired the starter gun, landlords haven’t had a voice, but we’ve been handed a great hand of cards and we can be influential over the coming weeks.
But it means that we must tell tenants that a proposal to prevent landlords from gaining possession will have consequences.
And the notion that tenants might have should Labour get in that they can’t be evicted needs nipping in the bud. Just like in lockdown when a rent cap/holiday was mooted, and some tenants thought they could live rent free.
However, it’s one thing for Labour to criticise a sitting government – it’s something else to explain how you would do things differently.
The end of the RRB means Labour can’t now blame the Tories for what happens next and there’s an opportunity to make clear what they will do.
A promise to end the housing crisis? An eviction ban? A nationwide rent cap?
Angela Rayner’s nonsense about house building and getting rid of section 21 will be shown to be the idiocy it always was – soundbites for the sake of it.
Let’s be honest too, the Tories need to be careful with its manifesto after ignoring landlords in the RRB when announcing their housing plans.
And I still find it difficult to understand how the Conservatives had an 80-seat majority to deliver change and squandered it.
It doesn’t help that the NRLA says it was ‘hugely disappointed’ that the RRB bit the dust.
I’m disappointed in the NRLA, but not surprised.
In the election countdown, we’ll need a strong body representing landlords to spell out clearly what the problems in the PRS are – and why Labour will make them (much) worse.
That’s because I fear that Labour has spoken to Shelter, Acorn and Generation Rent and is taking their ideas on board.
Can you imagine the wish list those organisations have, and Labour might be sweet-talked into believing this is a way to capture the tenants’ vote.
The term ‘housing emergency’ will be bandied about without any explanation of what it is – or why it has come about.
So, we should expect an evictions ban, the end of section 21 and a rent cap.
If that does happen, landlords can’t rely on the likes of the NRLA to speak out.
We all need to write to our tenants and explain – in detail – what Labour’s plans mean.
And why it’s likely we will have to sell, and the tenant will have to find somewhere else to live. In a market where lots of landlords are getting out early in a bid to beat the crusher.
Labour will talk about tenants’ rights but not the 160+ laws landlords have to follow.
Labour will talk about the cost-of-living crisis and controlling rents, not about the rising costs facing landlords.
Labour will talk about empowering tenants and making their tenancy secure because it is ‘their home’, ignoring property owner’s rights.
But they – and the Conservatives – won’t talk about landlord rights or levelling the playing field so we end up being treated with respect in the provision of homes.
A Landbay survey this week says 12% of landlords are voting Labour. Really? Who are you? Why?
But, I believe, we are about to see the strength of private landlords in the UK.
We hold a whip hand and the sanction of selling up should be recognised for the potential housing chaos it will create.
Landlords everywhere will find out exactly where they stand – and politicians and tenant advocacy groups will see how strong we really are.
Politicians also need to recognise that most landlords are older but still pay taxes and still work to deliver quality homes for tenants. They won’t want the hassle if landlording becomes too difficult or taxing.
We will learn why Labour and the Lib Dumbs have been so quiet about the PRS after years of wanting more tenant rights.
We will see in real-time politicians shooting themselves and their campaigns in the foot.
This is a conversation I doubt they want to have.
It’s going to be an interesting few weeks!
Until next time,
The Landlord Crusader
Karen
10:19 AM, 31st May 2024, About a month ago
Here is a good article by Mortgages for Business comparing Tory and Labour plans:
https://www.mfbrokers.co.uk/resources/news-and-insights/what-the-general-election-announcement-means-for-the-renters-reform-bill?j=902335&sfmc_sub=118081&l=3426_HTML&u=31358340&mid=510006524&jb=0
Reluctant Landlord
11:02 AM, 31st May 2024, About a month ago
"We hold a whip hand and the sanction of selling up should be recognised for the potential housing chaos it will create"
1. Firstly threats are empty - the NRLA is the only body that is seen to be acting on our behalf (I too question this!), and to date all they have done is look to be in favour of what was the RRB, so the sector already is seen as 'all mouth and no trousers', no bite, no threat.
Landlords therefore need to take this action if this is to hold any real 'fear' for anyone to take any notice. Highly leveraged landlords may need to sell yes and this might predict a surge in properties put on the market, but would that tip the balance as the rhetoric will drown out this being the direct reason for a flood of property on the market.
Many may take the decision to evict and keep a property empty, as the fear here is more about the cost and effort to remove a bad tenants and getting possession over meeting a mortgage payment perhaps. The result of this would mean a spike in demand for accommodation - then triggering rent caps/evictions bans and a downward spiral to follow but not an upsurge in properties going on the market by landlords which stats inevitably focus on. A soft PRS retreat?
2. If landlords leave the sector, it will be termed as a positive levelling up the playing field etc, not of decimation the housing market. The idea of a PRS to them is that it has become too big for its boots and it needs regulating - to the point it becomes an essentially second social housing sector by default.
The PRS is hated, but tolerated only when it can then be controlled by executive legislative powers for political reason. If anyone sells up because of the restrictions imposed then so be it. This is for the best - for the common good. They don't want tenants to be at the mercy of the free market and controlled so they control the market to prove the point!
They will push the narrative that they are the saviours not the sinners.
It's never going to be what Landlords think that matters or will matter, its what Labour think that tenant voters and their backers want to hear that will dictate policy direction before the GE and after.
The only thing that we can hope for is that the anger comes directly from tenants as all they will see is things getting a lot worse as a result of Labours actions, despite Labour saying they are making things better for them.
I agree 100% there is nothing wrong with us educating our own tenants now as to what the reality may be like. They need to know now before they vote!
Neilt
11:04 AM, 31st May 2024, About a month ago
Reply to the comment left by Karen at 31/05/2024 - 10:19
This link says "If the Conservative Party returns to power, the Bill will have to go through the whole process again, as it cannot be carried over to a ‘new’ Government. Likewise, if a new Government is voted in, the legislation cannot be transferred to them, even if they supported it".
And this article says
On the horizon, we have the ‘delight’ of Labour’s intentions which might include the long-held promise to abolish section 21 ‘on day 1’.
My question is, can Labour do that - abolish Sec 21 on day 1? Or do they have to go through the whole process again?
Stella
11:10 AM, 31st May 2024, About a month ago
Reply to the comment left by Karen at 31/05/2024 - 10:19
I wonder why mortgage Lenders do not back the PRS and make it clear to Labour and Conservatives that these draconian laws are unworkable.
This puzzles me not least because the lenders will have a diminishing supply of customers and it may also become too risky for them to lend on rented properties.
Northern Observer
11:12 AM, 31st May 2024, About a month ago
A quick Google search shows there are currently around 2.82 million landlords in the UK, with more than two-thirds (68%) over the age of 55. I would suggest the majority of these landlords vote and will have partners who may not be on the deeds. This could equate to around 5 million potential votes… surely the main parties should be listening to them as the providers of homes and not just to Shelter et al?
Karen
11:19 AM, 31st May 2024, About a month ago
Reply to the comment left by Reluctant Landlord at 31/05/2024 - 11:02Yes you are right, they are probably trying to turn it into a second social sector, forcing the PRS to take benefit tenants, whereas the corporations and the Build to Rent brigade will take over the professional tenants and charge accordingly. It wont work because the landlords in the PRS will go bankrupt sooner rather than later, but then does any politician care? I do not have much hope in educating tenants, when I talk to some of them they are very closeminded and do not understand what is going on and make no effort to understand. Its a social media headline of the day and not looked into anything further.
LaLo
11:26 AM, 31st May 2024, About a month ago
Labours renters ‘Housing Charter’ is a lot worse - very little chance of being able to sell. Take a look at Labourlist !!!
moneymanager
12:01 PM, 31st May 2024, About a month ago
'Other than Ben Beadle, are there any landlords',
Is Ben Beadle a landlord?
moneymanager
12:06 PM, 31st May 2024, About a month ago
Reply to the comment left by Northern Observer at 31/05/2024 - 11:12
True, the problem is that who do you vote for, both the main parties are ensnared by the WEF, WHO, One World Government which is effectively the combining of, as it always has been, the melding of corporatism and international statism, Mussolini's description of Fascism, perhaps we need an Alternative?
Reluctant Landlord
12:08 PM, 31st May 2024, About a month ago
Reply to the comment left by Karen at 31/05/2024 - 11:19
it wont work because there is no money or will in Build to Rent to accommodate families or anyone that doesn't fit into their target 'category'. Benefits tenants are a no go entirely.
It's all about easy build, dictated amount of space, en mass living, from the ground up buildings, all shiny and eco wonderful in the middle if or in town centres for the professional single/couple workers who want (and can pay for ) the on site gym/pool/cafe/socal spaces etc.
Where do the self funding, working families who need gardens, local schools etc go?