Fears of landlord exodus over stricter laws are ‘overblown’ – SMF

Stricter regulations of landlords, including ending Section 21 ‘no-fault’ evictions, wouldn’t lead to a shortage of rental properties, one think tank says.

New research from the Social Market Foundation (SMF) challenges the government’s justification for watering down the Renters (Reform) Bill.

It says by studying other countries, England lags in tenant security with short tenancies which allow landlords to evict tenants without giving a reason.

The research suggests these practices put English renters at a disadvantage.

‘English renters get a bad deal’

SMF researcher, Niamh O Regan, said: “English renters get a bad deal, certainly compared to their counterparts in other countries.

“Fixed term tenancies are too short, and no-fault evictions make periodic tenancies too risky.

“What’s more, cash-strapped councils and fragmented dispute resolution services are unable to consistently guarantee minimum standards, allowing bad landlords to continue to operate.”

She adds: “Longer tenancies and stronger protections for tenants would alleviate some of the pressures they face and make long-term renting a more attractive proposition – which it needs to be, given many of us are likely to be renting for much longer in future.”

Fears that landlords would leave are ‘overblown’

The SMF says that the Bill should not have been tweaked after opposition from Conservative MPs because fears that landlords would leave are ‘overblown’.

It points to Scotland, which banned ‘no-fault’ evictions in 2017, and saw no decrease in rental supply.

That contradicts research from the Scottish Association of landlords which found there are 22,000 fewer rented homes in Scotland.

The report, entitled ‘Let Down’, highlights alternative approaches used elsewhere with Scotland and Ireland offering indefinite tenancies, providing renters with greater stability.

In Ireland, the SMF says that the private rented sector has doubled in size since similar legislation was introduced.

Streamlining the rent dispute system

Along with abolishing Section 21 ‘no-fault’ evictions and adopting longer tenancies, the SMF proposes streamlining the rent dispute system.

It says that complaints can fall under various jurisdictions, making it difficult for tenants.

The report suggests a single point of contact, similar to systems in place in Australia, New Zealand and Ireland.

The SMF further recommends mandatory landlord registration to ensure landlords meet basic standards and deter bad practices.

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