Labour: Landlords can’t evict tenants if it makes them worse off

Labour: Landlords can’t evict tenants if it makes them worse off

10:09 AM, 5th August 2024, About 5 months ago 94

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Labour is looking to prevent landlords from evicting tenants who have nowhere else to live, the Telegraph reports.

It says government ministers will propose imitating a French scheme which has ‘hardship tests’ that must be followed before an eviction is allowed.

The rule effectively bans evictions that would leave a tenant worse off.

Supported by housing minister Matthew Pennycook, the rule is aimed at reducing homelessness.

Labour is also, the newspaper highlights, in talks about the proposals to reintroduce a minimum energy performance certificate (EPC) of C for the private rented sector.

A new ‘war on landlords’

The Telegraph says the moves will raise fears of a new ‘war on landlords’ which includes losing tax breaks on mortgage interest, more red tape and stamp duty surcharges.

The newspaper says that the housing minister wants to amend the new Renters’ Rights Bill to include the hardship test.

When the Renters (Reform) Bill was making its way through Parliament, Mr Pennycook tried adding an amendment to make it harder for tenants to be evicted.

That would have seen a judge refuse a possession order if it would lead to ‘greater hardship’ to a tenant.

The amendment highlighted three issues when the hardship rule would be met: a tenant losing their job if evicted, a tenant who has terminal cancer and if the eviction leads to homelessness.

Pennycook’s amendment failed to make it

Mr Pennycook’s amendment failed to make it in the RRB, but Labour now has a 174-seat majority in Parliament.

The Telegraph also highlights that Labour will reintroduce EPC targets for landlords with a 2030 deadline.

Many landlords will be looking at expensive upgrades, but the government might have a £10,000 cap on costs.

However, those close to the discussions say that Labour might choose a higher cap – or none at all.

EPC plans for landlords

The EPC plans for landlords would, the Conservative MP for Harrow East, Bob Blackman, be ‘unfair’.

He also told the newspaper that the target for energy efficiency was ‘not practical’.

Mr Blackman also said that many PRS properties cannot be upgraded which would see landlords sell-up.

He also warns that the costs would be put onto tenants with higher rents.

The MP also says that the hardship test would be unfair for landlords who are providing a service.

‘Renters’ Rights Bill will make renting fairer for all’

A government spokesperson told the Telegraph: “The private rented sector is in desperate need of reform, and our Renters’ Rights Bill will make renting fairer for all.

“The energy shocks of recent years have also shown the urgent need to upgrade British homes so we can secure our energy independence and reduce fuel poverty.

“Responsible landlords who provide quality homes to their tenants have nothing to fear from the sensible overhaul of private rented sector regulation we intend to implement.”


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Judith Wordsworth

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14:51 PM, 5th August 2024, About 5 months ago

On the first or second day of Labour's election campaign Rayner stated that Labour, should they come to power, not only would they be removing s21 but would also be instructing the courts to implement a hardship test if s1 Ground 1 was being used. ie who would be in greater hardship IF the landlord was granted possession.

Some courts, even before Labour came to power, were telling landlords that they would not be granting possession for a landlord to move into their rental property but to use the rental money received to rent somewhere themselves.

DPT

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14:58 PM, 5th August 2024, About 5 months ago

Can anyone think of a circumstance under which a tenant residing in your lovely home and perhaps not paying any rent would NOT be worse off if you evicted them?

Shelly Feay

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14:59 PM, 5th August 2024, About 5 months ago

Is the government trying to cause homelessness. Do they not actually have a brain cell in any of them. This is just another thing that will make landlords sell up. Why would anyone rent their house out knowing they could end up not being able to evict the tenant. I've faced homelessness 3 times now as a result of my landlords selling up. What is going to happen to me and my children now if this landlord decides to sell, there's less private properties already. They should be encouraging landlords to buy properties for people to live in, at least until they actually build more housing themselves.

PH

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15:04 PM, 5th August 2024, About 5 months ago

Reply to the comment left by Dizzy at 05/08/2024 - 10:35
Same here, I'm selling when my current good tenant leaves....if he does leave at all.

PH

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15:12 PM, 5th August 2024, About 5 months ago

Reply to the comment left by Judith Wordsworth at 05/08/2024 - 14:51
Yep, I guessed that would start to be rolled out.
Surely not even judges can tell you that you can't sell or move into your own home. We own these properties, does that not count for anything now. Surely the ECHR would put a stop to this nonsense.

JamesB

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15:15 PM, 5th August 2024, About 5 months ago

Reply to the comment left by Reluctant Landlord at 05/08/2024 - 14:35"You can tell the real state of affairs when a LL is confronted by 4,5,6,7 plus applications and the first thing they try to determine, is the risk of possible possession (and all that entails) before they even really look at anything else?"
You hit the nail on the head. I am in the process of selling one of my properties that I have owned for over 20 years. We have had 7 offers but I am still not sure about parting with it. I said to my wife that maybe we could re-let it for another year and about a minute before reading your post we were literally discussing not the rent or the tenancy or anything but how to find tenants that we knew would only stay for one year and no more. Isn't that ridiculous and absurd?

PH

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15:15 PM, 5th August 2024, About 5 months ago

Reply to the comment left by Shelly Feay at 05/08/2024 - 14:59
Send an email to your MP and try to get them to understand you....good luck with that.

PH

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15:44 PM, 5th August 2024, About 5 months ago

'worse off' ? Can they be a bit more specific ? This is far too vague to be entered into a renters rights bill . How can landlords make decisions on their property with proposals like this.

northern landlord

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17:52 PM, 5th August 2024, About 5 months ago

Reply to the comment left by PH at 05/08/2024 - 15:04
I dont see him ever leaving especially if he is not paying market rent. I am waiting for my tenants to leave but I won't see it happen as I am older than them.

PH

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18:17 PM, 5th August 2024, About 5 months ago

Reply to the comment left by northern landlord at 05/08/2024 - 17:52Rayner will first of all put a rent increase cap in place which will stop any aggressive rises in rent which puts any improvement burdens firmly in the hands of the LL and not the tenant therefore I suggest increasing rents as much and as soon as is possible. My rental is a 'c' so I can relax unless of course new legislation is introduced immediately which wouldn't surprise me. Evicting my tenant is not something I want to do but I won't hesitate to if it means I have to go to court to plead with a tenant biased judge to get MY property back...it even sounds ridiculous !

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