Landlords could ‘lose control’ of properties

Landlords could ‘lose control’ of properties

0:01 AM, 20th August 2024, About 3 months ago 13

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Labour’s proposed Renters’ Rights Bill could significantly impact the level of control landlords have over their rental properties, one leading law firm says.

Osborne Clarke says landlords need more clarity about the proposed Bill which offers tenants increased security but will reshape the private rental sector.

The removal of Section 21 ‘no-fault’ evictions will mean landlords having to adapt to stricter possession grounds under Section 8 of the Housing Act.

Eliminating Section 21, particularly accelerated possession claims, is likely to prolong the process of regaining possession for landlords.

The law firm says that coupled with the complexities of navigating new procedures, this could exacerbate existing court backlogs, especially for cases that cannot be resolved without a full hearing.

Previous government’s Renters (Reform) Bill

Osborne Clarke points out that the Bill will build on the foundations of the previous government’s Renters (Reform) Bill to enhance tenant protections and improve the overall rental experience.

A key provision is the abolition of Section 21 ‘no-fault’ evictions, and it introduces stricter grounds for landlords to regain possession of properties through Section 8 of the Housing Act.

The law will also mandate a ‘decent homes standard’ for all private rented sector (PRS) accommodation.

Disputes between landlords and tenants

There’s also an ombudsman scheme being proposed that will mediate disputes between landlords and tenants, reducing the need for court involvement.

The Bill also prohibits discrimination against tenants receiving benefits or with children, ensuring fairer access to rental properties.

Further measures include granting tenants the right to keep pets, subject to reasonable conditions, and creating a centralised database for landlords, tenants, and councils.

However, the law firm says the government needs to offer clarity because there is a ‘minimal amount of information’ being shared.

Give the industry greater clarity

A spokesperson for Osborne Clarke said: “The publication of the draft bill is likely to give the industry greater clarity and that it will include measures to manage or mitigate delays for landlords seeking to recover possession.

“Clearly, the rental market is poised for significant change, however.

“Landlords, while they await further details of the reforms, should monitor any updates as the Renters’ Rights Bill progresses through Parliament, so that they are best positioned to comply with and not to fall foul of the new requirements as they come in to force.

“Moreover, the government will need to be mindful to ensure they do not spark a slew of evictions under any transitional provisions.”


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Dylan Morris

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10:20 AM, 22nd August 2024, About 2 months ago

Reply to the comment left by Kevin Bird at 21/08/2024 - 21:58
Legal immigration currently running at 700,000 net each year which is certainly going to be ramped up under Labour….. we need more inclusion and diversity etc.
Illegal boat crossings running at 50,000 a year and again likely to be ramped up under Labour. So indeed where are all these people going to be housed ? I’ve been reading that the new administration want to ensure that 40% of new build sites are “affordable housing”. Presently a developer can ask for this to be reduced to 20% as most affordable housing is a loss leader or at best break even, which is subsidised by increasing the price of the normal stock. Labour are not going to allow the quota to fall below 40% so developers just won’t build. And new purchasers won’t buy that nice expensive 5 bed detached house when nearly half of the estate are council or housing association homes. I really can’t see where 1.5 new homes are coming from in the next 5 years. There’s going to be massive shortages of new homes and people will have to purchase rather than rent. It really is a shxx show and only going to get worse. Conservatives started it Labour will finish it.

Jaskk

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12:34 PM, 23rd August 2024, About 2 months ago

Reply to the comment left by Mike Thomas at 20/08/2024 - 16:27
Interest rates are not too high, they have finally returned to normal levels and were only low due to the financial crisis.

John Porcella

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1:44 AM, 24th August 2024, About 2 months ago

Reply to the comment left by Keith Wellburn at 20/08/2024 - 15:52
If Housing Benefit is involved, it means that landlords are providing social housing. Surely that must be of benefit to society? If they did not provide their properties for those at the bottom of the social ladder, who else would? I guess some housing associations and councils? Well, they would happily receive the housing benefit payments, so why not private sector landlords?

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