How the Renters’ Rights Bill will affect PRS landlords

How the Renters’ Rights Bill will affect PRS landlords

9:17 AM, 18th July 2024, About 4 months ago 48

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Landlords have another battle on their hands with news that the Renters’ Rights Bill will pick up where the Renters (Reform) Bill failed to deliver.

Despite a 2019 manifesto pledge, the RRB was binned by the Conservatives after Rishi Sunak called a General Election.

Now Labour is promising to ‘take action where the previous government has failed’ on the protection for renters.

Below, we give details of what landlords can expect from the new legislation.

‘Everyone can grow up in secure housing’

Prime Minister Sir Keir Starmer said: “Too many people currently live with the threat of insecurity and injustice, and so we will make sure everyone can grow up in the secure housing they deserve.

“We will introduce tough new protections for renters, end no-fault evictions and raise standards to make sure homes are safe for people to live in.”

The Labour says that more than 11 million renters in England face constant anxiety because they could be evicted with little warning and for no reason.

It adds that this fear traps many tenants in poor-quality housing because they’re afraid to complain about being kicked out in retaliation.

‘Contribution made by responsible landlords’

The Labour Party says: “We value the contribution made by responsible landlords who provide quality homes to their tenants and believe they must enjoy robust grounds for possession where there is good reason to take their property back.

“However, the Government is determined to level decisively the playing field between landlord and tenant by providing renters with greater security, rights and protections and cracking down on the minority of unscrupulous landlords who exploit, mistreat or discriminate against tenants with bad practices such as unfair rent increases intended to force tenants out, and pitting renters against each other in bidding wars.”

‘Transform the experience of private renting’

It goes on: “The Renters’ Rights Bill delivers our manifesto commitment to transform the experience of private renting, including by ending Section 21 ‘no-fault’ evictions – we will take action where the previous government has failed.

“The Bill will give renters much greater security and stability so they can stay in their homes for longer, build lives in their communities, and avoid the risk of homelessness.”

Labour also says the PRS must provide flexibility for those who want it, and that too many renters are ‘being exploited by a minority of unscrupulous landlords’.

Challenges faced by millions of private renters

The government says this Bill will tackle the challenges faced by millions of private renters in England, including 1.4 million families with children and 444,000 households with over-65s.

In 2023, ‘no-fault’ evictions threatened a record 25,910 families with homelessness, while 2,682 were evicted – a worrying 19% increase in just a year.

The government also points to soaring rents which have jumped from a 2% annual growth to 9% in March.

That rise means tenants, on average, spend 38% of their income on rent, compared to 21% for homeowners and 27% for social housing tenants.

Also, one million private rented homes are considered non-decent, and more than half a million have serious health hazards like damp and mould.

What is planned under the Renters’ Rights Bill?

To help private landlords understand what is planned under the Renters’ Rights Bill, here are the full details published by the government:

  • Abolishing Section 21 ‘no-fault’ evictions, removing the threat of arbitrary evictions and increasing tenant security and stability. New clear and expanded possession grounds will be introduced so landlords can reclaim their properties when they need to.
  • Strengthening tenants’ rights and protections, for example we will empower tenants to challenge rent increases designed to force them out by the backdoor and introduce new laws to end the practice of rental bidding wars by landlords and letting agents.
  • Giving tenants the right to request a pet, which landlords must consider and cannot unreasonably refuse. Landlords will be able to request insurance to cover potential damage from pets if needed.
  • Applying a Decent Homes Standard to the private rented sector to ensure homes are safe, secure and hazard free – tackling the blight of poor-quality homes.
  • Applying ‘Awaab’s Law’ to the sector, setting clear legal expectations about the timeframes within which landlords in the private rented sector must make homes safe where they contain serious hazards.
  • Creating a digital private rented sector database to bring together key information for landlords, tenants and councils. Tenants will be able to access information to inform choices when entering new tenancies. Landlords will be able to quickly understand their obligations and demonstrate compliance, providing certainty for tenants and landlords alike. Councils will be able to use the database to target enforcement where it is needed most.
  • Supporting quicker, cheaper resolution when there are disputes – preventing them escalating to costly court proceedings – with a new ombudsman service for the private rented sector that will provide fair, impartial and binding resolution, to both landlords and tenants and reducing the need to go to court.
  • Making it illegal for landlords to discriminate against tenants in receipt of benefits or with children when choosing to let their property – so no family is discriminated against and denied a home when they need it.
  • Strengthening local councils’ enforcement powers. New investigatory powers will make it easier for councils to identify and fine unscrupulous landlords and drive bad actors out of the sector.

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David Houghton

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10:37 AM, 18th July 2024, About 4 months ago

Discrimination against tenants on benefits? How is that supposed to work. Don't we already have a ban on No DSS, so benefit tenants can apply for properties then be rejected on a case by case basis as they can't afford it, or will they increase LHA to cover 50% of the rents in the area?

Stella

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10:49 AM, 18th July 2024, About 4 months ago

Reply to the comment left by David Houghton at 18/07/2024 - 10:37
What will happen is that they will cap rents so that eventually the rents we can advertise will be no more than the rates on benefits.
The rent officer used to set them prior 1988 Housing act I can see something similar happening perhaps under a different name.

Cider Drinker

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10:54 AM, 18th July 2024, About 4 months ago

𝐇𝐨𝐰 𝐦𝐚𝐧𝐲?
Is it…
1) 𝑇ℎ𝑒 𝐿𝑎𝑏𝑜𝑢𝑟 (Party) 𝑠𝑎𝑦𝑠 𝑡ℎ𝑎𝑡 𝑚𝑜𝑟𝑒 𝑡ℎ𝑎𝑛 11 𝑚𝑖𝑙𝑙𝑖𝑜𝑛 𝑟𝑒𝑛𝑡𝑒𝑟𝑠 𝑖𝑛 𝐸𝑛𝑔𝑙𝑎𝑛𝑑 𝑓𝑎𝑐𝑒 𝑐𝑜𝑛𝑠𝑡𝑎𝑛𝑡 𝑎𝑛𝑥𝑖𝑒𝑡𝑦 𝑏𝑒𝑐𝑎𝑢𝑠𝑒 𝑡ℎ𝑒𝑦 𝑐𝑜𝑢𝑙𝑑 𝑏𝑒 𝑒𝑣𝑖𝑐𝑡𝑒𝑑 𝑤𝑖𝑡ℎ 𝑙𝑖𝑡𝑡𝑙𝑒 𝑤𝑎𝑟𝑛𝑖𝑛𝑔 𝑎𝑛𝑑 𝑓𝑜𝑟 𝑛𝑜 𝑟𝑒𝑎𝑠𝑜𝑛.
Or is it…
𝐼𝑛 2023, ‘𝑛𝑜-𝑓𝑎𝑢𝑙𝑡’ 𝑒𝑣𝑖𝑐𝑡𝑖𝑜𝑛𝑠 𝑡ℎ𝑟𝑒𝑎𝑡𝑒𝑛𝑒𝑑 𝑎 𝑟𝑒𝑐𝑜𝑟𝑑 25,910 𝑓𝑎𝑚𝑖𝑙𝑖𝑒𝑠 𝑤𝑖𝑡ℎ ℎ𝑜𝑚𝑒𝑙𝑒𝑠𝑠𝑛𝑒𝑠𝑠
Or is it…
𝑤ℎ𝑖𝑙𝑒 2,682 𝑤𝑒𝑟𝑒 𝑒𝑣𝑖𝑐𝑡𝑒𝑑
Quite a contrast between 11 million and 2,682, don’t you think?
𝐒𝐞𝐜𝐭𝐢𝐨𝐧 𝟐𝟏
Section 21 is neither an eviction and nor is it ‘no fault’. Anybody that refers to it as either of these things is plain ignorant.
Section 21 is Notice seeking possession. Essentially, it is a landlord advising the tenant that they would like them to leave. No reason is given even though there will be one. The reason may be perfectly valid (rent arrears, anti-social behaviour, landlord looking to sell and so on or it may be that the landlord is being a bully and just loves to remove good people from their properties so that they can enjoy a void period.
𝐄𝐯𝐢𝐜𝐭𝐢𝐨𝐧
Eviction is only ever ordered by a Court. A judge considers the evidence and if the landlord ‘wins’, a possession order is granted and the tenant advised when to leave.
If tenants don’t leave by the date ordered by the judge, bailiffs can be appointed to enforce the possession order.
Section 21is not an eviction notice.
Section 21 doesn’t mention the absence of ‘fault’.
𝐅𝐢𝐱 𝐭𝐡𝐞 𝐩𝐫𝐨𝐛𝐥𝐞𝐦
Tenants would be better protected if there were more houses than people wanting houses. If a landlord wanted them to leave (for any reason or for no reason), the tenants would have a plentiful suppy of homes to move into.
The lack of housing is one of the government’s own making. A total failure to manage migration means we have too many people wanting homes.
If we are to allow massive net migration, so be it. Let people know how many economic migrants masquerading as asylum seekers, genuine asylum seekers and others that we plan to allow to join us in the U.K. Only then will planners know how many homes to build, how many hospitals and schools to build, how to upgrade our energy system and how to upgrade our water and sewer networks etc.,
𝐅𝐮𝐭𝐮𝐫𝐞 𝐟𝐨𝐫 𝐦𝐲 𝐭𝐞𝐧𝐚𝐧𝐭𝐬
I made a commitment to never ask a tenant to leave. In almost 25 years, I have managed to keep to that commitment. I am a landlord and not a property investor.
One of my tenants would like to downsize (after 17 years in one of my 4 bed properties). They don’t want a different landlord- a testament to how well I have looked after them. Ten years ago I would have bought another property for them to move into. Not today.
𝐅𝐮𝐭𝐮𝐫𝐞 𝐟𝐨𝐫 𝐦𝐞
If any of my tenants move out, the properties will no longer be available to private tenants. I will either sell them or convert them to holiday lets. Being a landlord is far too stressful and I don’t need the hassle and the constant bullying from government, Local Authorities, media and so-called charities.
If you read this far, well done and thank you. 🙂

Cider Drinker

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11:01 AM, 18th July 2024, About 4 months ago

Reply to the comment left by Stella at 18/07/2024 - 10:49
If rents are capped at rates that make it impossible for landlords to make a profit, landlords will go bankrupt, the properties sold and the housing market will crash.

If they want to build 1.5 million homes, they need private investors to help fund the build. Maybe Build to Rent companies will deliver some of the new homes but they won’t be doing so at affordable rents. And they won’t be bullied as easily as private landlords.

David Houghton

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11:02 AM, 18th July 2024, About 4 months ago

Reply to the comment left by Stella at 18/07/2024 - 10:49
Oh yes, I remember that we even had one chap on Registered rent. I forgot we all like to rent out property at a loss. For me no more vulnerable tenants, with a history of drug or alcohol addiction. I wonder who will house them in the future

Cider Drinker

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11:10 AM, 18th July 2024, About 4 months ago

Reply to the comment left by David Houghton at 18/07/2024 - 11:02
Is that the same as the register of fair rents (you can search by partial postcodes)…

https://www.gov.uk/check-register-rents

David Houghton

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11:22 AM, 18th July 2024, About 4 months ago

Yes, that's the one. We even paid for his funeral when he died as he had no-one else. Us landlords really are terrible people, David Cameron and all his successors were right to slowly purge the UK of them. After all who wants to move to get a better job and boost the economy

homemaker

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12:12 PM, 18th July 2024, About 4 months ago

I obtained my first possession using section 8 yesterday. The application was made on 12 June and listed for yesterday. The judge issued the order, gave the tenant 21 days to vacate and added court application fees to the CCJ for outstanding rent. I’m wondering why I used section 21 previously with all its administrative hurdles. This possession will presumably now be recorded as an at fault possession.

Cider Drinker

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13:07 PM, 18th July 2024, About 4 months ago

Reply to the comment left by at 18/07/2024 - 12:12That is much quicker than most landlords are reporting (on Social Media at least 🙂 ). I guess that there are wide differences between various areas of the country.
Given that there were only 2,682 Section 21 evictions in 2023, equating to just 0.02483% of the 11 million private tenants that are reported to be suffering 𝑐𝑜𝑛𝑠𝑡𝑎𝑛𝑡 𝑎𝑛𝑥𝑖𝑒𝑡𝑦 𝑏𝑒𝑐𝑎𝑢𝑠𝑒 𝑡ℎ𝑒𝑦 𝑐𝑜𝑢𝑙𝑑 𝑏𝑒 𝑒𝑣𝑖𝑐𝑡𝑒𝑑 𝑤𝑖𝑡ℎ 𝑙𝑖𝑡𝑡𝑙𝑒 𝑤𝑎𝑟𝑛𝑖𝑛𝑔 𝑎𝑛𝑑 𝑓𝑜𝑟 𝑛𝑜 𝑟𝑒𝑎𝑠𝑜𝑛, perhaps the problem isn’t such a problem after all. Remember, some of those in the 0.02483% will be anti-social tenants, tenants with rent arrears or tenants that breach the terms of their AST agreement.

Stella

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13:43 PM, 18th July 2024, About 4 months ago

Reply to the comment left by David Houghton at 18/07/2024 - 11:02
Let the council house vulnerable tenants, the risk is too great.
Yes we had 2 tenants on registered rents and you could go to the Town Hall and see all the other registered rents in the area and there was never a significant increase in the rent no matter what improvements were made to the property.
If we disagreed with the rent officer and took it to the tribunal where there would be a justice of the peace and a few others who would look at the rent and they would never disagree with the rent officer.
Small wonder then that tenanted properties were only worth 50% of market value.
I get the impression that Sadiq Khan has something like this in mind because he often says that it is his desire to link rents with the average incomes in the area.

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