Government has ‘spooked’ landlords over the Renters (Reform) Bill

0:04 AM, 20th September 2023, About A year ago 52

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A buy to let mortgage expert has accused the Government of needlessly ‘spooking’ landlords over the proposed Renters’ (Reform) Bill with its language aimed at pleasing tenants.

Gavin Richardson, the boss of Mortgages for Business, says the Government’s proposals to change evictions, including scrapping Section 21 notices, are not as bad as many fear.

He was reacting to reports in some newspapers that some Tory MPs, including some in the Government Whips’ office, want to weaken the Bill.

One newspaper reported: ‘There are a number of landlords in the Whips’ office who are amplifying the level of concern among Tory MPs and holding things up’.

Mr Richardson said: “I want to reassure the Whips that we don’t think the reforms will prove to be that bad for landlords.

“First, sensible landlords — even those working in the Conservative Whips’ office — rarely turf out good tenants who pay their rent as they want them to stick around.”

‘Reform will disproportionately hit the minority of bad landlords’

Mr Richardson continued: “So, this reform will disproportionately hit the minority of bad landlords who have abused Section 21 notices, rather than the reputable end of the market.

“Second, tenancies can still be ended if there has been a breach of the tenancy by the tenant.

“And the government has said it will introduce a new ombudsman to settle disputes between tenants and landlords without the need to go to court.”

He added: “The government has also promised to digitise the courts’ agenda ahead of these reforms to ensure a swift resolution to these cases.

“That will speed up processes where possession cases require them.”

‘The real danger of this reform’

He explains: “Third, the Whips will always be able to end a tenancy if they plan to move back in or sell it — that was the real danger of this reform, anything that inadvertently risked landlords’ ability to realise the value of their housing assets through disposal.

“The loss of full tax relief on mortgage interest payments for individual landlords, and the stamp duty surcharge on additional property purchases were far more significant for landlords.”

He adds: “The fact that the Whips are nervous is understandable, given their own government’s rhetoric.

“I don’t think for a moment that Section 21 exacerbated homelessness as one Tory communities secretary has claimed.

“The government has needlessly spooked landlords — including their own backbenchers — in a bid to curry favour with tenants.”

Mr Richardson says there are 87 MPs from all parties who are landlords who run 167 rental properties with each MP earning more than £10,000 in rent – the level at which such income must be reported in the ‘member’s interests’ register.

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Tags: buy to let mortgage, Conservatives, Landlords, renters, Renters Reform Bill, whips

Comments

Beaver

8:45 AM, 22nd September 2023, About A year ago

Reply to the comment left by Seething Landlord at 21/09/2023 - 22:56
Thank you. That's very helpful.

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Beaver

9:51 AM, 22nd September 2023, About A year ago

Reply to the comment left by Seething Landlord at 21/09/2023 - 22:56
Thank you. That's helpful. Section 60 page 15:

"....This includes extending the notice period for rent arrears from two weeks to four weeks and reducing the notice period for serious anti-social behaviour (ground 7A) so landlords are able to make a claim for possession immediately."

Looks like a mixed bag to me. If my tenant hasn't paid me for two weeks why I should have to wait a month before starting to take action?

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Beaver

10:04 AM, 22nd September 2023, About A year ago

Reply to the comment left by Beaver at 22/09/2023 - 09:51
So it appears to me that unless the deposit I am allowed to take goes up from where it presently is at 5 weeks (it used to be 6 weeks) and I am not allowed to take any action for 4 weeks due to non-payment of rent then in effect I have a 1 week deposit. And of course I'm still having to make mortgage payments to pay for the privilege of housing the tenant.

That's going to affect a lot of landlords, not just those housing the small number of tenants exhibiting persistent and serious anti-social behaviour.

I always thought that 6 weeks rent as a deposit was reasonable. I don't think I would be too troubled by the proposal to change from 2 weeks to 4 weeks before I can take action for non-payment of rent if I was allowed to take 2.5 months rent as a deposit.

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Seething Landlord

10:29 AM, 22nd September 2023, About A year ago

Reply to the comment left by Beaver at 22/09/2023 - 10:04
The tenant needs to owe at least 2 months rent before you can start the possession process so the deposit is never going to cover the arrears, whatever the notice period.

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Ian Narbeth

10:57 AM, 22nd September 2023, About A year ago

Reply to the comment left by Beaver at 22/09/2023 - 09:51The Government either does not know or is wilfully blind to the problems of dealing with anti-social behaviour. Ground 14 of Section 8 is to be amended so that it will include “behaviours ‘capable of causing’ a nuisance or annoyance” as opposed to behaviours ‘likely to cause’ a nuisance or annoyance. Apparently, this means that a wider range of tenant behaviours can be considered in court.
As I explained here this is useless. Also, if it takes 12 months to get to court, being able to initiate action two weeks sooner makes little difference.

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Beaver

12:04 PM, 22nd September 2023, About A year ago

Reply to the comment left by Beaver at 22/09/2023 - 10:04
This section on page 85 of the explanatory notes is ambiguous:

"613 Paragraph 22 inserts a new ground for repeated serious rent arrears. A court is required to award
possession if, over a period of three years:
a. where rent is payable monthly, at least two months’ rent was unpaid for at least a day on
three separate occasions.
b. where rent is payable for a period shorter than a month, at least eight weeks’ rent was
unpaid for at least a day on at least three separate occasions."

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Beaver

12:06 PM, 22nd September 2023, About A year ago

Reply to the comment left by Beaver at 22/09/2023 - 12:04
The example of the intent behind this is on page 86:

"A tenant falls two months behind on rent and the landlord initiates proceedings under Ground 8.
The tenant pays off their arrears so they owe £1 less than two months’ rent on the day of their court
hearing. As such, possession is not granted. A few months later the tenant misses another rent
payment, taking them over the 2 months’ arrears limit. The next year, the tenant misses two rent
payments and the landlord initiates proceedings for eviction. Possession is granted by the court.
Landlords will not be required to have served notice or begin possession proceedings using ground
8 on each of the three occasions to use the ground (although they may have), as long as the tenant
has breached the relevant arrears threshold three times within three years."

So the example gives us the intention behind this but the wording itself is ambiguous.

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Seething Landlord

17:20 PM, 22nd September 2023, About A year ago

Reply to the comment left by Beaver at 22/09/2023 - 12:06
Where is the ambiguity?

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David Houghton

12:27 PM, 23rd September 2023, About A year ago

Reply to the comment left by Teessider at 20/09/2023 - 10:27
Do you let to tenants on benefits, or HMOs, vandalism to claim disrepair is common place. Necessating, expert reports and a trial. The end of s21 means the end of letting to the unemployed or vulnerable.

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Beaver

13:05 PM, 23rd September 2023, About A year ago

Reply to the comment left by Seething Landlord at 22/09/2023 - 17:20
Read it again and consider the different ways in which the courts might interpret it.

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Government has ‘spooked’ landlords over the Renters (Reform) Bill

‘Reform will disproportionately hit the minority of bad landlords’