Landlords and agents set to bear brunt of £33M cost of Renters’ Rights Bill

Landlords and agents set to bear brunt of £33M cost of Renters’ Rights Bill

9:33 AM, 26th November 2024, About 4 weeks ago 32

Text Size

The impact of the Renters’ Rights Bill is expected to cost £33 million a year, but the government insists it will not trigger a mass exodus of landlords.

According to the government’s impact assessment, the estimated cost for landlords is £12 per rented property annually, while agents are expected to face an average cost of £1,700 per year.

The government admits most of the costs (excluding those related to Awaab’s Law and the Decent Homes Standard) will fall on landlords, with the majority impacting private landlords, and a smaller portion affecting social housing landlords.

Landlords will only benefit by £9 a year

The assessment also estimates tenants will benefit by just £28 per household per year. Landlords are expected to see a gross benefit of only £9 per property annually, largely from reduced letting agent fees due to fewer household moves and shorter void periods.

The government claims the Renters’ Rights Bill will only cause a small number of landlords to exit the market.

The assessment said: “There is a risk that costs from the legislation may result in some landlords leaving the sector. This is difficult to estimate precisely, though we would expect it to be substantially mitigated by the additional cost per rented property being a very small fraction of average annual rent and asset value.

“The available evidence to date does not suggest that similar reforms to abolish section 21 in Scotland have negatively impacted supply, nor changes introduced by the 2019 Tenant Fees Act, despite concerns they would.”

However, a study by the Scottish Association of Landlords shows a reduction of 22,000 rental properties in Scotland in just one year due to government policies and anti-landlord rhetoric.

A survey by the National Residential Landlords Association (NRLA) found that 41% of landlords plan to sell properties within the next 12 months, compared to only 6% who intend to buy.

Replaced by more professional landlords

The government claims that those most affected by the costs of the Renters’ Rights Bill will be the landlords providing the poorest service to their tenants.

The assessment said: “Landlords facing the greatest costs as a result of these measures will be the ones providing the poorest service to their tenants, we anticipate they are more likely to exit the sector as a result of these changes, which leaves the potential for them to be replaced by more professional landlords.”

The assessment also reveals that the government has turned down the idea of a specialist housing court, saying the costs would be too high. Instead, they plan to digitise the court process, which they say will make things simpler for landlords.

The full impact assessment can be seen here


Share This Article


Comments

Old Mrs Landlord

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

17:36 PM, 26th November 2024, About 4 weeks ago

Reply to the comment left by TheMaluka at 26/11/2024 - 10:55
Is Diane Abbot overseeing them?

NewYorkie

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

17:40 PM, 26th November 2024, About 4 weeks ago

Reply to the comment left by Old Mrs Landlord at 26/11/2024 - 17:36
I think she was responsible for the figures.

Peter Merrick

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

20:49 PM, 26th November 2024, About 4 weeks ago

Two words come to mind: "Cloud" and "cuckoo land". That's the same level of competence as their figures.

Welcome to the new world of ultra-strict referencing, no tenancy without a home-owning guarantor, and automatic annual rent increases, starting at the maximum possible price to prevent bidding wars
.

Old Mrs Landlord

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

20:56 PM, 26th November 2024, About 4 weeks ago

Reply to the comment left by Lordship at 26/11/2024 - 16:35
That is exactly what is happening and I'm sure I'm not alone in being affronted at being classed as a bad landlord because I gradually sell properties as they fall empty on tenants' giving notice. At almost 85 I can't risk being stuck for the rest of my life with a rogue tenant that there is no means of removing - I might need that property to pay care home costs.

Scott Robertson

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

3:44 AM, 27th November 2024, About 4 weeks ago

The ultimate aim are for huge corporations to control housing. I read an article 10+ years ago saying Tesco, biggest landowner, had that included in its future plans. There's another nail in the coffin for mum and dad landlord trying to bolster their meagre pension.

Hugh Baily

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

9:46 AM, 27th November 2024, About 4 weeks ago

If our politicians put half as much effort into building homes as it does persecuting good landlords we might just create an efficient and competitive marketplace. Making letting more expensive with additional taxes and red tape raises rents and hurts tenants. It destroys the service we provide.
The fact is that if demand exceeds supply then landlords have the whip hand so the politicians efforts are misplaced and futile.
I have been a Landlord for 25 years. I used to take pride in providing a good and friendly service to my tenants.Today the government makes this very hard.
Through these posts I see the same sentiments.

Godfrey Jones

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

15:45 PM, 27th November 2024, About 4 weeks ago

I've always enjoyed being a landlord and have taken pride in supplying families with good clean safe accommodation at below market cost. However, I refuse to pay LA's for a license and I refuse to join any kind of National Register. If anyone should me made to join a Register it should be all the "Tenants from Hell" so all us good Landlords stand a fighting chance - but the Gov won't make as much money from Tenants will they???
Anyway, I am selling up and if I don't get the asking price I need to cover the thousands I've just spent getting my propies up to EPC 'C', then I would rather they sit empty than risk allowing someone in who I don't know and who I don't know if I will be able to get out when the time comes.
If the Gov were genuine they would recognise the good work 99% of us Landlords do and the valuable service we provide. At the same time they could focus their attention on allowing us to make a profit and thrive again whilst tackling the 1% of rogue Landlords which btw seem to originate from foreign lands - if I'm allowed to voice that observation!

Chris @ Possession Friend

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

21:56 PM, 27th November 2024, About 4 weeks ago

... " Landlords facing the greatest costs as a result of these measures will be the ones providing the poorest service to their tenants " -
Where on earth did that thesis emanate ?

So this legislation is so clever it will change apples into oranges

Struggling1

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

8:55 AM, 30th November 2024, About 3 weeks ago

My rental income is now well below my mortgage payments and rising service charges. Trying to sell up at the end of each tenancy.

John Grefe

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

9:50 AM, 30th November 2024, About 3 weeks ago

Reply to the comment left by Andrew McCausland at 26/11/2024 - 10:31
Sorry to know you are leaving. I blame "Rach" the chancellor, one who did six years instead claiming 10 years. Then there's Woolyband, oh no it's Miliband who plans to spend £25 billion on carbon capture -what a waste. Better off supporting home owners to have soler panels, battery storage with a heat pump.
Better say before the anti heatpump mob jumps in that not all homes are suitable.
WE are planning to leave the rental market, had a good run(50 years), but with taxes, possible rent controls, regulations(e.g.section 21) additional costs for anything the government can think up, had enough. Hold on until the hopefully the right time.

This leftwing bunch of muppets are doing it again

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Automated Assistant Read More