Renters’ Rights Bill = Rent controls by the back door. Thank you, Labour!

So, where do we begin? The Renters (Reform) Bill is dead, long live the Renters’ Rights Bill! But is it better or worse than what the Tories had planned for the private rented sector? Well, I think the prospect of bringing in rent controls should alarm landlords everywhere.

I’ll come onto the other issues later, but the prospect of tenants objecting to rent rises will lead to a huge issue.

Of course, lots of them will object – they don’t care if their landlord can afford their buy to let mortgage, selective licensing fee and the other onerous running costs.

But Labour will be knocked sideways by this idea because there’s something coming down the train tracks, they haven’t factored in which could decimate the PRS as we know it – and there’s nothing they can do about it.

The idea that tenants can object to rent rises will play well to the activist groups because all PRS landlords are just mean. Right?

Wrong. Most of us just want to invest in a property that we can sell at some point, inevitably to fund a pension pot, so we need tenants. Good tenants, that is.

How many landlords will decide that an objection will be upheld since the courts are apparently so anti-landlord?

And if we don’t raise the rent to at least cover our costs or make a small profit, we have one of two options: not put the rent up or sell.

It’s going to be easier to sell

Which would you do? I’m guessing it’s going to be easier to sell, rather than put up with more nonsense from the naïve socialists.

I’ve mentioned before that we should also expect to see restrictions on selling – and a big increase in CGT, obviously.

This lack of understanding consequences of actions is going to be a serious issue over the coming years as landlords struggle to make sense of the new law.

It looks like there will be a tribunal of sorts for tenants to object to which will then reject or limit the rent increase. It would be nice if they would accept it, but I’m not holding out much hope.

That’s because we already have a court system that is weighed heavily against landlords and here’s a legal hurdle that will, in all likelihood, side with tenants.

This means the Renters’ Rights Bill will effectively bring in rent controls without a debate and by the back door.

The Bill is aimed entirely at scapegoating landlords and plays to the crowd. This is one battle that landlords cannot win.

Having seen some of the amendments that were made to the Renters (Reform) Bill by Labour, I’m dreading what else might be delivered.

Landlords are being held accountable

Essentially, landlords are being held accountable for the failings of various governments.

We didn’t build enough homes to house the millions of people who have turned up here. You did.

Labour says the Bill introduces a fairer rental market, but for whom? It certainly won’t be for landlords, and as time will prove, it won’t be fair for tenants either.

And should de facto rent controls be brought in then we will have a holy mess of a PRS to sort out.

Just look at Scotland and the antics of a Lefty, SNP government that punished landlords with a rent cap – rents rocket and landlords leave.

Reading Property118 and what impact the Bill will have, here’s my response:

• Abolishing Section 21 ‘no-fault’ evictions – nonsense on stilts without reforming the court process. Labour says landlords will be able to reclaim properties when they need to. I bet they don’t allow this
• Strengthening tenants’ rights and protections – no mention obviously about landlord rights
• Giving tenants the right to request a pet – apparently, we can’t refuse this. We can ask for pet insurance, so that’s all right then
• Decent Homes Standard – nonsense to smear the vast majority of good landlords who strive to deliver quality accommodation
• ‘Awaab’s Law – when councils and social housing providers are struggling to comply with this, what hope have we got? The law needs to highlight tenant lifestyles and not just blame landlords
• Digital PRS database – this is a corker and will have all of our details on – but not for tenants to help protect us against the rogue renters we encounter. And if this does go live, what are the chances that selective licensing – which is meant to do the same job – will be abolished. Any thoughts, landlords?
• Quicker, cheaper dispute resolution – a new ombudsman service for the PRS that will provide fair, impartial and binding resolution, to both landlords and tenants and reduce the need to go to court. I’ll believe this when I see it. Unless the courts hold rogue tenants accountable, this is a waste of money
• Stop discrimination against benefit tenants – Oh, please. Telling a property owner who can and cannot live in our homes? Get over yourselves. You haven’t had the ‘joy’ of dealing with some of the these (not all) tenants who don’t care – and the benefits payment system is a nightmare. (Note: Landlords don’t ‘discriminate’ – we just want someone who pays the rent!)
• Strengthening local councils’ enforcement powers – words fail me. If councils don’t use the powers they already have, what would giving them more powers do?

What is coming down the tracks?

Let’s wrap up with my mention earlier about what is coming down the tracks that could blow the PRS apart.

It’s in a story on Property118 about renters getting older and portfolio landlords expanding.

The story ends with this sentence: ‘With 350,000 buy to let mortgages due to mature in the next year, landlords who are refinancing could see mortgage bills increase by £225 per month.’

It seems such a casual fact to bandy about but that’s a lot of landlords who will be looking at increasing the rent by a hefty amount.

And if tenants can object to a rent rise, what will the government, the councils, tenants and landlords do when the rent doesn’t go up?

I imagine there will be a lot of finger pointing and landlord blaming.

But don’t worry renters, the government is building 1.5 million homes in the next five years.

That won’t be quick enough to house you but, wait, Labour has already said most of that number will go to illegals and asylum seekers in temporary accommodation.

So, you won’t be getting houses, and your landlord will sell up – also hurting house prices – and you’ll struggle to find somewhere else to live.

We really do get the politicians we deserve.

Until next time,

The Landlord Crusader

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