10:21 AM, 18th October 2024, About a month ago 19
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Just when you thought Labour’s hatred of landlords couldn’t get any worse comes the alarming realisation that the Renters’ Rights Bill could be so much worse than most landlords fear.
I’m talking about Housing Minister Matthew Pennycook’s interview with the I newspaper that Property118 covered.
Firstly, it’s the usual lefty nonsense about protecting tenants – not landlords, naturally – even though laws are in place to do just that.
But the realisation that he was talking about criminalising something that isn’t even mentioned in the Bill really hit me.
Everyone has missed it but for those of us who have tried valiantly to read the Bill’s details, it’s one simple claim.
The clueless Pennycook, who is another Labour lightweight who has never had a job, says that pregnant women will be protected in the Bill from discrimination.
Landlords who do discriminate will be fined £7,000!
Sounds fine, doesn’t it? Discriminating against a pregnant woman is a hard case to argue against.
But whoa! Hold on. There is no mention of pregnant women in the Bill’s details so either Pennycook is making stuff up as he goes along or, there’s more to come for those the Bill will protect.
I know that those on benefits, families with children and tenants wanting pets are getting the airtime but this is something different.
Are we saying that NO ONE can be discriminated against? Is Labour saying we can’t carry out proper referencing of tenants anymore?
Why would discriminating against a pregnant woman be a cause for making a claim against a landlord if she has a track record of not paying rent, trashing landlord properties and carrying out anti-social behaviour?
Is this going to be another blanket ban because it sounds good?
To be honest, I’m starting to panic now.
He makes clear that landlords who break the proposed discrimination characteristics can be taken to a tribunal and fined multiple times.
Multiple times at £7,000 a throw is the end of a landlord’s investment.
I was among the first to flag up the issue of allowing tenants to object to a rent rise by taking their complaint to a tribunal as a form of rent control by the back door.
The tenant can apply to a tribunal for free – and they’ll do it if they think they have been discriminated against.
In the interview, Pennycook said he wanted to ‘ban rental discrimination against renters with children and those who receive benefits of any kind’.
Benefits of any kind? Am I hearing this right?
He went on to say: “What we’re trying to do through this bill is clamp down on discrimination, for example by [targeting] adverts that say, ‘No people on benefits’, as well as intentional discrimination that can happen in person.”
In person? So, if I don’t use the potential tenant’s correct pronouns, I’ll get a £7,000 smack in the kisser?
No, thank you.
He says the Bill will outlaw discrimination ‘for good’.
Two things, Matt, firstly it won’t and secondly, it will if there are no landlords left to rent from.
So, now we are going to ignore the Equalities Act 2010 because it’s ‘difficult to enforce’. I think you’ll find it’s been very easy to enforce – you obviously can’t be bothered.
Being pregnant is a protected characteristic under the Equality Act as is:
Is Labour looking to extend the Renters’ Rights Bill to cover these characteristics?
Most landlords don’t have issues with any of those characteristics but being FORCED to accept someone simply because they are on a list is an issue.
Imagine turning down a convicted sex offender with a track record in not paying rent, attacking a landlord but turns up to a viewing in a dress.
Are we saying that the characteristic then trumps common sense?
Do we get fined every time this happens?
Has anyone come across this as an issue? I’m guessing having a financial incentive to hurt a landlord might be a game changer.
What if the sex offender then attends 10 viewings (lucky him/her!) in a day and then complains about it? He/she could be in for a £70,000 payday.
But get this – Matt also says that landlords who are repeat offenders could be fined up to £40,000, face criminal proceedings or be issued with a banning order preventing them from letting out homes.
I despair.
This is like going back to Tony Blair’s infamous ‘mission creep’ days with what appeared to be hard to argue against legislation – but which hid a sledgehammer.
Pennycook has the brass neck to then claim: ‘Good landlords have nothing to worry about’ with the Renters’ Rights Bill.
I think we do – and the sooner that landlords wake up to the real prospect of losing control of their property and who can live in it – and how much we can charge – then a fightback might get underway.
Because once this nonsense becomes law, don’t expect politicians to come and save you.
We stood by while MPs, tenant activist groups and the media slagged us off.
We let the public perception of landlords be dragged through the mud and didn’t have a right to reply.
If ever there was a time for landlords to unite and for a representative organisation to start laying out what will happen when this Bill becomes law, then that time is definitely now.
If that doesn’t happen then we will only have ourselves to blame as the PRS is decimated and landlords are pushed into financial ruin because of Labour’s La La land nonsense.
Until next time,
The Landlord Crusader
Michael Crofts
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Sign Up9:16 AM, 19th October 2024, About 4 weeks ago
When under attack the first rule is to keep a cool head.
'He/she could be in for a £70,000 payday'
That isn't correct. Schedule 5, paragraph 12, on page 207 of the Bill (page 217 of the pdf) states that the proceeds of financial penalties will be applied 'towards meeting the costs and expenses (whether administrative or legal) incurred in, or associated with, carrying out any of [the local housing authority's] enforcement functions under this Act or otherwise
in relation to the private rented sector. Para. 13 says 'Any proceeds of a financial penalty imposed under section 39, 56, 64 or 89 which are not applied in accordance with paragraph 12 must be paid to the Secretary of State. '
As for the new rules about discrimination those for England begin on page 40 of the bill (p.50 of the pdf). The way to deal with this successfully is to learn how to document tenant selection in the same way as employers document recruitment to avoid claims of unlawful discrimination. The bill as drafted lists certain specific grounds of discrimination which are to be made unlawful, and of course the other laws about discrimination will also apply. Landlords need to design a tenant application process which makes it clear what (lawful) characteristics one wants to see in applicants, and that one is not discriminating unlawfully. In fact I already approach tenant selection in the same way as I used to approach employee selection and I have never had to evict anyone in all the years I have been a landlord. I have even taken properties off the market for a short time if no acceptable applications have been received. Then I start again and I keep going until I have found what I want which is someone who will pay the rent, look after the property, cause no trouble to me or anyone else, and (vitally important) has a good reason not to get into any kind of trouble.
Michael Crofts
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Sign Up9:26 AM, 19th October 2024, About 4 weeks ago
Reply to the comment left by Markella Mikkelsen at 18/10/2024 - 11:03Rejecting the pregnant lady because of the future screaming baby will be unlawful discrimination.
Section 32 of the Bill says that we cannot prevent anyone from renting 'on the basis that a child would or may live with or visit a person at the dwelling if the dwelling were the person’s home'. See page 40 of the Bill (page 52 of the pdf) for the full section.
However a landlord is not compelled to rent to such a person. We can still vet applicants with the aim of first finding those who fulfill the lawful criteria which we set in advance and then having prepared a shortlist choosing the individual who in our judgement is the best applicant. We just have to make sure that at no stage of the process is there any question of discriminating unlawfully and the best way of doing that is to document the process.
Northernpleb
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Sign Up11:18 AM, 19th October 2024, About 4 weeks ago
In reply to Markella ,
Will documenting the process stop the claim in the first instance. It will not stop anyone giving it ago because it is no cost to them. But it will definitely be costing you .
Michael Crofts
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Sign Up16:35 PM, 19th October 2024, About 4 weeks ago
Reply to the comment left by Northernpleb at 19/10/2024 - 11:18
You are right and if you feel strongly that complying with the anti-discrimination provisions is a big risk you should issue s21s now and leave the business. There is a window of opportunity for all of us to get out. I am seriously considering doing so.
Northernpleb
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Sign Up10:42 AM, 20th October 2024, About 4 weeks ago
In reply to Michael ,
Hi Michael I think most Landlords are considering down sizing , or leaving the business. If they can find a tax efficient way of doing it.
From reading your previous posts concerning where the fine proceeds are to be allocated.
The Council is now Judge, Jury, and Beneficiary.
So when we do try to evict a less than prefect tenant for any reason we will be facing a very big risk .
Michael Crofts
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Sign Up11:09 AM, 20th October 2024, About 4 weeks ago
Reply to the comment left by Northernpleb at 20/10/2024 - 10:42
Yes, the Local Housing Authorities will wield great power and have the ability to cripple financially any landlord who makes a mistake.
My best guess is that the PRs will shrink noticeably because of this Act.
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Sign Up12:25 PM, 20th October 2024, About 4 weeks ago
Michael Crofts
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Sign Up16:13 PM, 20th October 2024, About 4 weeks ago
Reply to the comment left by Venu at 20/10/2024 - 12:25
The call for Evidence was published on 14 October.
The first hearing is on 22 October - 2 days' time.
Don't delay.
Michael Crofts
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Sign Up9:53 AM, 21st October 2024, About 4 weeks ago
Reply to the comment left by Michael Crofts at 19/10/2024 - 09:26
Further to my earlier post about refusing to let to a pregnant woman because her baby will keep other occupants awake at night.
Section 32 (2) of RRB says:
Subsection (1) does not apply if—
(a) the relevant person can show that the conduct is a proportionate means of achieving a legitimate aim, or .....
I am suggesting an amendment to clarify 32(2)(a).