Landlords now facing the ‘grown-ups’: Don’t give up!

What can landlords in the private rented sector expect from the new Labour government? Remember, the party’s fans are bandying about the term ‘the grown-ups are back in the room’ without anything to back it up. Also, remember that this government has a ‘mandate’ on one of the lowest ever electoral turnouts, where Reform came second in 98 constituencies and Starmer saw his vote numbers crater.

But what of the ‘grown-ups?’ First, we have a chancellor who admitted she struggled to get by on two massive salaries and had her Parliamentary credit card withdrawn, we have a women’s minister who can’t tell you what a woman is, a business secretary who hasn’t had a job and a foreign secretary who is convinced men can get a cervix.

Then we have the new housing minister Matthew Pennycook.

Ignoring the fact I keep mispronouncing his name, not deliberately I assure you, what can we expect from his mammoth life experience?

Here’s a man who has only worked in the voluntary and charity sectors, with a stint in a ‘think tank’ and is now an MP with a rock-solid constituency.

I’m sure he’s a nice person and loves animals but his performance during the passage of the Renters (Reform) Bill doesn’t inspire me.

Wait two years before they can sell

Among the many amendments he put forward was the great idea for landlords to wait two years from the tenancy beginning before they can sell or move back into their property.

Two years? That’s someone living in your property and there’s nothing you can do.

He also wanted to see Section 21 being abolished when Royal Assent is given without waiting for the court system to be upgraded and the massive backlogs cleared.

Student landlords will need to be vigilant that Pennycook doesn’t end fixed-term contracts.

He also wanted councils to act on their homelessness prevention duties when a possession order was granted – and when it’s a section 8, when the notice is given.

We don’t have enough homes for this to be made law and landlords will face chaos as tenants decide they can get a council house quicker by going down the section 8 route.

I’d quite forgotten his barmy ideas for RRB which also included the banning of tenant bidding wars, and a blanket ban on landlords not renting to families on benefits.

This is one situation that any landlord who has had to deal with UC, councils and tenants on benefits might have an input on.

Malign every decent landlord

I also fear that he will be in thrall to the tenant organisations that have managed to malign every decent landlord in the country.

And convince the media that tenants need more protection – despite there being more than 160 laws in place for landlords to meet.

But I’m also hopeful that clearer heads in the civil service will explain what the consequences of a particular action will be.

It’s one thing telling everyone that you will level the playing field to favour tenants, but the playing field is already tilted against good landlords.

And it’s here that a quote from someone who understands the PRS more than most needs more attention.

Many won’t have seen it but this week, the boss of Homelet, Andy Halstead, said: “It is rarely quoted that a tenant can now quite easily occupy a rental property for 12 months or so, without paying a penny in rent.

“Whilst this is a fact, politicians run away from dealing with the challenge.

“A viable private rental sector requires support for all stakeholders, including agents and landlords, this still looks like a pipe dream.”

Remember, it’s only landlords that need regulating.

The fact someone can live in a rented property without any desire to pay rent beggars belief.

This is the sort of stuff that landlords and our representative organisations should be highlighting.

Renters (Reform) Bill takes shape

My biggest fear is that the coming months will be a nightmare of epic proportions as a new Renters (Reform) Bill takes shape.

There’s still no sign of banning section 21 ‘on day one’ and I’m sure the debate will be about protecting tenants.

We do need all stakeholders to be considered and it didn’t help that the Conservatives’ first crack at the RRB showed their ignorance of the sector.

Various changes were made and passed off as placating the ‘greedy’ landlords, without any explanation of why landlords should not be punished for providing homes.

So, Matthew, you want to show that you understand the PRS and issues facing landlords? Then get rid of Section 24. I don’t need to go into great detail except to say that landlords are the only business type not able to offset their finance costs.

I know. Go figure.

That was introduced by the Tories so you could get two hits with one move.

It doesn’t bode well that Pennycook is the 16th housing minister in 14 years – perhaps he can be given the time to deliver?

Only time will tell but with more draconian legislation on the horizon, it might be time to buckle up.

Because, regardless of what the Conservatives did to the PRS, this mad grouping of politicians without any real-world business experience or, apparently, common sense, really could put the skids under landlords.

But they’ll be creating an even worse situation for tenants that we will get the blame for, naturally.

Until next time,

The Landlord Crusader

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