0:05 AM, 9th October 2024, About 3 months ago 12
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Renters in England are facing an average cost of £2,216 for unwanted house moves following eviction, according to research from Generation Rent.
This ‘eviction tax’ includes costs such as the deposit, ‘overlapping’ rent from old and new tenancies, and other moving expenses.
As MPs debate the Renters’ Rights Bill in the Commons today, the organisation wants the law to stipulate that landlords waive the last two months’ rent.
It says the average rent in England is £1,327, meaning two month’s compensation would cover the ‘eviction tax’ costs.
Generation Rent’s chief executive, Ben Twomey, said: “£2,216 is an astonishing amount of money to have to stump up for a move you didn’t choose to make.
“Along with the inconvenience of being uprooted and having to find a new home, you can play by the rules but still rack up thousands of pounds of debt when the landlord decides to kick you out.”
He added: “The cost of renting crisis continues to cut deep, and these enormous moving costs can be the difference between renters finding a new home or finding themselves out on the streets.
“The government must use the opportunity of the Renters’ Rights Bill to compensate evicted renters by making landlords waive the last two months’ rent, so we have the breathing space to make the savings we need to keep a roof over our heads.”
While the Bill will abolish the Section 21 ‘no-fault’ evictions, it will still allow landlords to evict when selling a property or moving back in themselves.
The Renters’ Reform Coalition (RRC) is calling on the government to introduce two months’ rent compensation for tenants evicted under these grounds.
It says that compensation would help mitigate the financial hardship faced by renters who are forced to move out of their homes.
The RRC argues that having to pay compensation in the case of a no-fault, landlord-need eviction would reduce the number of evictions that result in homelessness.
It would also discourage landlords from trying to ‘abuse’ the new eviction grounds as a ‘backdoor’ to the banned Section 21 process, the RRC warns.
Tom Darling, a director of the Renters’ Reform Coalition, said: “It’s totally unjust that a renter can be evicted through absolutely no fault of their own and have to meet costs of more than two grand – this is just another factor in our broken renting system which contributes to homelessness and poverty.
“We welcome the government’s Renters’’ Rights Bill – the end of section 21 will mean greater security for millions of renters across England.”
He adds: “But let’s be clear: no-fault evictions will continue.
“That’s why we’re calling on the government to go further and protect tenants against the ‘eviction tax’ through two months’ rent as compensation.”
The organisations are also urging MPs to pay attention to their other proposals, such as:
Cider Drinker
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Sign Up9:18 AM, 9th October 2024, About 3 months ago
Deposits are protected in government schemes. Any deductions are wholly justified or the tenant can seek arbitration. Leave the property as you found it (with the exception of fair wear and tear) and the deposit will be returned in full.
Tenants need to give a month’s notice to end a tenancy. This means they may well need to pay rent for two properties for up to a month whenever they move home. Labour, in their infinite wisdom, are increasing the notice period to two months. This will potentially double the overlapping rent period.
I have some sympathy for other moving expenses where the tenant has not been at fault (plenty of no fault grounds under Section 8 of the Housing Act). If the landlord didn’t clearly state that the tenancy would be brought to an end by a given date, a contribution towards moving expenses could be warranted. This must be limited and, of course, needs to be an allowable expense for tax purposes.
If the government made letting property an attractive investment, tenants wouldn’t need to move so often.
Cider Drinker
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Sign Up9:32 AM, 9th October 2024, About 3 months ago
Average tenancies are three years. I’ll need to add 6% to the rent so that I can pay two months compensation. Maybe I’d better make it 10% to allow for the risk of my tenancies being shorter than the average.
Every cost comes at a price.
Dylan Morris
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Sign Up10:34 AM, 9th October 2024, About 3 months ago
Reply to the comment left by Cider Drinker at 09/10/2024 - 09:18I also disagree with the proposed two months notice that a tenant needs to give to end the tenancy. Much better if it stays at one month. Image a tenant approaches a landlord to rent a property, but has to give two months notice to their current landlord. As the new landlord will I be happy for the new tenant not to move in for two months ? The tenant can of course start paying for the new tenancy straight away but there will be an “overlap”of rent of two months costing the tenant a lot of money. Much better to keep as now with one month notice.
Cider Drinker
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Sign Up11:08 AM, 9th October 2024, About 3 months ago
Reply to the comment left by Dylan Morris at 09/10/2024 - 10:34
Exactly. These void periods are immensely wasteful.
It would be better if notice periods could be agreed between two adults.
Perhaps one week when the property is returned in a condition suitable to re-let and viewings have been permitted to two months when the property is returned in a non-lettable condition and/or when viewings have not been permitted.
Jo Westlake
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Sign Up12:21 PM, 9th October 2024, About 3 months ago
In the incredibly rare incidence of a totally impeccable long-term tenant being evicted I don't have a problem with the idea of refunding the last two months rent along with the deposit as long as the tenant moves out within the notice period and no court action is required.
The vast majority of tenants move out because life happens and it's time to move on. Their choice so no compensation due.
Some will breach their tenancy and be evicted. Their fault so no compensation due.
The very few others who are genuinely blameless are only going to be evicted if the landlord has no other option due to ill health, divorce, EPC, etc or has decided it's time to retire. It will usually be a once in the ownership of the property event. Obviously it's something we would factor in to future rent increases so it's questionable if any tenant would truly benefit from such compensation whereas it's pretty much a certainty all tenants would be paying for it.
PH
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Sign Up13:03 PM, 9th October 2024, About 3 months ago
I've got a lovely bungalow to let. It's totally rent free and yours to do as you wish for as long as you like and move in your friends and family whenever you like too. I'll pay all of your bills so every penny you earn is yours to do with as you wish. If in the unlikely event that you and your bezzies want to move out I'll gladly pay your moving fees and deposit on your next palace. Don't worry about leaving my place like a tip I'll happily spend weeks cleaning it up and spending thousands on it cos it's what I enjoy doing the most see. Oh , before I forget, get yourself & your friends some spare keys cut in case you want to pop back round for a few weeks squatting, I'm sure the new lovely tenants won't mind !
Stella
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Sign Up18:16 PM, 9th October 2024, About 3 months ago
Reply to the comment left by PH at 09/10/2024 - 13:03
Your bungalow could be nice for me and my mates PH but we must have room for our Great dane and Boa constrictor and my girlfriends gold fish.
Shame on me I almost forgot and what about the "deeds"
moneymanager
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Sign Up19:27 PM, 9th October 2024, About 3 months ago
I've had tenants move out on the last day not having cleaned a thing, others have moved out a month early oaud in full and had professional cleaning done and everything in between, the point is that the more rules you have, the less two parties can agree a way forward.
RMH
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Sign Up22:31 PM, 9th October 2024, About 3 months ago
Reply to the comment left by Jo Westlake at 09/10/2024 - 12:21Exactly this (and in particular, tie it to leaving at ecpiry of S8 notice). If S8 grounds are abused to get people out (e.g. increase rent above market rate which seems to be fine outside of an existing tenancy), I have no issue there being a penalty to level the playing field with those playing by the rules. It will be a one time hit for legitimate evictions, but compared to CGT and such just another cost to factor in.
PH
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Sign Up22:42 PM, 9th October 2024, About 3 months ago
Reply to the comment left by Stella at 09/10/2024 - 18:16
Whoa ! Now I think you're taking liberties by moving the dog in but snakes are fine and don't worry about the skin that they shed , I'll clean that up and you're more than welcome to have the original deed...can't really see a problem myself 😕