‘Blundertruss’ backtracks on moves to end Section 21 abolition plans

‘Blundertruss’ backtracks on moves to end Section 21 abolition plans

14:36 PM, 12th October 2022, About 2 years ago 29

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Private sector landlords will be dismayed to hear that Prime Minister Liz Truss has backtracked on rumoured plans to shelve legislation that would have abolished Section 21 ‘no-fault’ evictions.

Ms Truss performed her latest U-turn during Prime Minister’s Questions today (Wednesday).

That’s when Labour MP Graham Stringer told the chamber that after increasing the cost of borrowing and the cost of mortgages as an act of ‘gross incompetence’, he said:

“But going back on the commitment to end no-fault evictions is an act of extreme callousness.

“Can the Prime Minister reassure the 11 million private renters in this country that she will carry out her commitment to get rid of no-fault evictions?”

Without hesitating, the Prime Minister rose to her feet and replied: “I can.”

Planned abolition of Section 21

The latest turnabout follows a report in The Times that the government was looking to shelve legislation that would have meant the planned abolition of Section 21 would no longer take place.

That led to an outcry from housing organisations with many of them criticising the government and the impact such a move would have on tenants.

The move to stand by the plan to abolish Section 21 follows a pledge that was first made by the Conservatives in 2019 to scrap ‘no-fault’ evictions in their election manifesto.

And in May, the legislation was confirmed in the Queen’s Speech with a new Renter’s Reform Bill that will also see the extension of the Decent Homes Standard to the private rental sector and an ombudsman to help manage disputes between landlords and tenants.

Critics responded quickly to news that the government was still going ahead with its plans to abolish section 21.

‘Government’s commitment to ending Section 21’

The Renters’ Reform Coalition tweeted: “Confirmation of the government’s commitment to ending Section 21 from @trussliz at PMQs is welcome news. But we have more questions.

“When and how? What about the Renters’ Reform Bill that was promised this Autumn?”

Kiran Ramchandani, the director of policy and external affairs at Crisis, told one media outlet that tenants will be ‘breathing a sigh of relief’ after the Prime Minister confirmed the government’s commitment to ending no-fault evictions.”

She added the government must now bring forward the Renter’s Reform Bill to give tenants stability.

‘Keep faith’ with the plan to end ‘no-fault’ evictions’

Meanwhile, it has been revealed that Michael Gove spoke at a Shelter event at the Conservative Party conference last week urging the Prime Minister to ‘keep faith’ with the plan to end ‘no-fault’ evictions.

Mr Gove said, according to a report in The Times, that Boris Johnson was insistent that the planned measure should remain in the 2019 manifesto.

He also said that the government must deliver a level playing field between tenants and landlords and focus on a minority of landlords who do not behave responsibly.


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Beaver

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14:25 PM, 14th October 2022, About 2 years ago

Reply to the comment left by NewYorkie at 14/10/2022 - 13:51
So compared to a £20K loss, which isn't difficult to rack up if you have a bad tenant, the average price of an Airbnb in UK is $150 per night:

https://www.alltherooms.com/analytics/average-airbnb-prices-by-city/

And the average Airbnb makes > $22,000 per annum in the UK:

https://www.alltherooms.com/analytics/airbnb-calculator/

The Welsh (labour) government recently had the wit to vote against rent controls in Wales. Conversely, the Scottish government (effectively the SNP) just made Airbnb more attractive in places like Edinburgh, Glasgow, Oban and Arran.

I think governments need to decide whether they want high quality, sustainable 'permanent' accommodation or not. If 'permanent' means your tenant gets to live in your property but you can't charge rent, or you're going to struggle to get a bad tenant out, then Airbnb is going to be a much more attractive option.

NewYorkie

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14:33 PM, 14th October 2022, About 2 years ago

Reply to the comment left by Beaver at 14/10/2022 - 14:25
Councils are cracking down on airbnb because they realise landlords [not only holiday lets] have shifted to short term, swamping the market. Edinburgh is a good example.

I bought a 4-bed house in 2020, which I have extended with the intent to holiday let. That market is now looking suspect. I may simply let 2 rooms to my local theatre for travelling artistes. £50 per night, no regulations,ans no CGT if I sell. Of course, I'm now retired, and was never reliant on property income over my 20 years in BTL.

Beaver

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14:40 PM, 14th October 2022, About 2 years ago

Reply to the comment left by NewYorkie at 14/10/2022 - 14:33
I've used Airbnb frequently, both travelling for work and leisure. I've never had a bad experience doing it.

How are Councils 'cracking down' on Airbnb?

NewYorkie

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14:56 PM, 14th October 2022, About 2 years ago

Reply to the comment left by Beaver at 14/10/2022 - 14:40
Too many in a small area!

Beaver

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15:05 PM, 14th October 2022, About 2 years ago

Reply to the comment left by NewYorkie at 14/10/2022 - 14:56
it might be true that Councils don't like having lots of Airbnbs. And I've heard that they are cracking down on social housing being illegally sublet as Airbnbs. But that's something different from private holiday lets.

NewYorkie

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15:27 PM, 14th October 2022, About 2 years ago

Reply to the comment left by Beaver at 14/10/2022 - 15:05
Yorkshire is not alone in the growing negative vibe against airbnb, holiday lets, second homes... The narrative hasn't changed since we had a holiday let in 2001, in that there is nowhere for locals to buy/rent. The difference today is there is a genuine crisis in the private rental market.

Beaver

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15:45 PM, 14th October 2022, About 2 years ago

Reply to the comment left by NewYorkie at 14/10/2022 - 15:27
I'm not sure what's happening to the population of Yorkshire although unlike Scotland nobody has so far introduced rent controls in Yorkshire. And I'm not aware of what, if anything, local councils in Yorkshire are doing to dissuade people from letting out their properties as holiday lets.

The SNP on the other hand has just voted to introduce rent controls in Scotland. Scotland's population is forecast to decline with the population of the rest of the UK growing:

https://www.nrscotland.gov.uk/news/2022/scotlands-population-projected-to-fall

But at the moment Scotland apparently faces a shortage of 100,000 homes. So wouldn't you have thought that Scotland would want to make investing in homes attractive?:

https://www.independent.co.uk/news/uk/scotland-homes-scottish-government-covid-b2032539.html

But in introducing rent controls the Scottish government has made buy-to-let less attractive than Airbnb. It isn't just a question of the direct short, medium and long-term effects of the controls; a vote by an overwhelming majority of SNP MPs to attack the PRS also sends out a message that the SNP is out to attack private investment.

But maybe councils and governments, both regional and central, could learn something from Airbnb. Airbnb has made BNB attractive to both investors and private individuals many of whom hadn't previously considered letting out accommodation.

Old Mrs Landlord

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16:15 PM, 14th October 2022, About 2 years ago

Reply to the comment left by NewYorkie at 12/10/2022 - 15:04
PMQs Wednesday 12/10/22.

NewYorkie

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17:45 PM, 14th October 2022, About 2 years ago

Reply to the comment left by Old Mrs Landlord at 14/10/2022 - 16:15
?

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