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 3 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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Northampton Landlord

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5:35 AM, 14th August 2024, About 3 months ago

Reply to the comment left by JamesB at 05/08/2024 - 15:15
If you are planning to sell, be aware that CGT is NOT one of the taxes Rachel Reeves pledged not to increase.
She has taken the Winter Fuel Allowance away from all but the poorest pensioners.
Again, not mentioned in the Labour Manifesto.
Get out now.
CGT will br equalised with income tax at least.
No sympathy from anyone as you are a rich capitalist according to Labour.

5h

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16:46 PM, 19th August 2024, About 3 months ago

Taxing their incompetence, it wont go for long though, last nails are being hammered in fast to this country.

Martin Hicks

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18:41 PM, 21st August 2024, About 3 months ago

Reply to the comment left by Frank Jennings at 05/08/2024 - 10:32
But in future will rental businesses want to buy properties sold by private landlords? Any with worse than EPC 'C' rating or those with leasehold restrictions? Or those requiring updating or higher than normal maintenance costs? I think such companies will be very selective as to which they select for purchase. And with rent controls, proposed restrictions on evictions and changes to student accomodation contracts threatened. Not a business I will be investigating into!

NewYorkie

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19:39 PM, 21st August 2024, About 3 months ago

Reply to the comment left by Martin Hicks at 21/08/2024 - 18:41
Yes, why would a landlord invest in a property which will immediately cost a lot of money, assuming it's even possible to reach EPC C... unless it's very cheap. But then, the opportunity will be there for first time buyers, who won't need to buy to make a profit, and won't care if it's EPC C now they're homeowners. Maybe, that's part of the plan.

Rookie Landlord

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9:06 AM, 31st August 2024, About 2 months ago

Reply to the comment left by Dizzy at 05/08/2024 - 10:35
Fortunately people don't decide their votes because of what's happening in the rental sector. That last lot were a complete disaster. It would be almost impossible to be any worse. I hope we don't see them again for a very long time. If this lot get booted out I pray they are not replaced by the tories.

Rookie Landlord

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9:41 AM, 31st August 2024, About 2 months ago

Reply to the comment left by Lee Bailey at 09/08/2024 - 10:59
What a patriot!

Rookie Landlord

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9:56 AM, 31st August 2024, About 2 months ago

Reply to the comment left by Phil T at 10/08/2024 - 07:37
The reason many landlotds may not have sold up is because according to figures I've read, approx 40% of landlords own their properties outright.

Rookie Landlord

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10:20 AM, 31st August 2024, About 2 months ago

Reply to the comment left by John Socha at 14/08/2024 - 05:35
I agree with the current government on both those actions as long as the government put the money they generate to good use. Things won't get better if we continue along the same old path. As long as those who truely need the benefit are caught I see no problem.

NewYorkie

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11:29 AM, 31st August 2024, About 2 months ago

Reply to the comment left by Rookie Landlord at 31/08/2024 - 10:20
I admire your optimism, but when it's your money they are playing with, and it forces you into a difficult position, you may think differently.

Landlords choose to invest in rental property if it is profitable. If it isn't, they can choose not to.

Stella

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14:30 PM, 31st August 2024, About 2 months ago

Reply to the comment left by Rookie Landlord at 31/08/2024 - 10:20Do you regard good use of the money to be where unions demand big increases and the government roll over and allow them to have increases in the region of 15% or good causes like taking away the winter fuel payments from pensioners whose income might not be much more than the state pension??
I

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