0:03 AM, 17th September 2024, About 2 months ago 21
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A property expert warns of “bad news for landlords” as Labour reforms could see tenants who don’t pay rent stay for three months.
Paul Shamplina from Landlord Action told the Daily Telegraph that under the Renters’ Rights Bill, tenants can miss up to three months of rent before a landlord can start the process of reclaiming their home.
At the moment, landlords can only start eviction processes if a tenant has missed rent payments for two consecutive months.
Under the Labour government’s new rental reforms, tenants will now get four weeks’ notice before they have to move out, instead of the current two weeks’ notice for rent arrears.
Paul Shamplina, of law firm Landlord Action, says many landlords will rush to serve Section 21 notices.
He said: “With the abolition of Section 21 now certain and timeframes clearer, landlords and tenants should prepare for the impact. In the next six months, many landlords will rush to serve Section 21 notices before the ban takes effect.
“While I support improvements to property conditions, my main concern is the broken court system. Good landlords will benefit from clearer regulations, but promises of robust eviction grounds mean little if the courts remain overwhelmed.”
Mr Shamplina adds that under the Renters’ Rights Bill landlords could be facing tougher eviction rules.
He told The Telegraph: “This is bad news for landlords. A common scenario we see is tenants trying to bring rent arrears just below the mandatory threshold before action can be taken. It has become a common tactic used by savvy tenants.
“So now, under the latest changes, anything less than three months will be a discretionary ground – meaning it is up to the discretion of the judge.”
The government has advised landlords that they can use this discretionary ground if rent payments are consistently late.
The Ministry of Housing, Communities and Local Government told the Telegraph the changes would “allow tenants more time to repay arrears and remain in their homes while ensuring landlords do not face unsustainable costs”.
Mr Shamplina also warns about the crumbling court system, noting the long wait times for possession.
Mr Shamplina said: “We already have cases where landlords are owed two years of rent but can’t reclaim their properties, with one of our cases dragging on for 19 months without a hearing date yet.
“Landlords aren’t banks, and many rely on rent to cover mortgages or fund retirement. Nearly a fifth of properties for sale are from landlords leaving the market, forcing tenants to find homes in an already tight market.
“Without landlords, the private rental sector (PRS) collapses. As more landlords exit, rents will rise, and housing will become scarcer, ultimately harming tenants. Protecting tenants is crucial, but without fixing the court system, the entire rental market faces chaos.”
The government has confirmed that a Section 21 ban will be implemented when the Bill becomes law, regardless of whether the court backlog has been cleared.
This leaves Section 8, which currently allows landlords to apply for a hearing to recover lost rent, but will soon be used for all types of evictions.
For help and advice about tenant eviction and collecting arrears, then Landlord Action may be able to help:
Specialists in tenant eviction and debt collection. Regulated by The Law Society.
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Cider Drinker
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Sign Up9:42 AM, 17th September 2024, About 2 months ago
Longer waiting times to evict bad tenants means more time in temporary accommodation for those looking for a home.
The stress and expense of housing bad tenants means fewer landlords and fewer PRS properties.
It ain’t rocket science.
Markella Mikkelsen
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Sign Up9:43 AM, 17th September 2024, About 2 months ago
The Renters "Rights" Bill will only harm good tenants.
For every **bad** tenant that cannot be evicted, a potentially good tenant is penalized because that property remains off the market.
Yes Angela/Polly, bad tenants do really exist.
In the next few days, my tenants (who are all good tenants), will receive a letter that I will ask them to send to their MP. The message will be very clear: if this Bill passes through Parliament in its current format, they will all receive a S21 while I can still issue one and I will sell. This bill together with S24 and rumoured CGT changes means too high a risk to run my business.
Good tenants will unfortunately pay the price for the lunacy of this Government and the short-sightedness of previous ones.
GARY RIVETT
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Sign Up10:45 AM, 17th September 2024, About 2 months ago
The problem here I believe is that the people who make these changes/rules are not savvy.
The Govt have no idea what is happening in the PRS. They just hear of a few bad reports from socialist groups like shelter and think that all LLs are criminal millionaires. Nothing could be further from the truth.
The Govt just has no idea how the system works.
It is quite simple Polly, the freer the system is, the happier everyone will be, rents will stabilize and tenants will be happier.
All the Govt needs to do is to build more homes and reduce regulation, everything will then sort itself out. All portfolio/professional landlords know this, so why can't this thick Govt understand it? Probably because they are talking to the wrong people.
If LLs don't have to fear delinquent tenants, rent will be lower, if a LL can remove a delinquent tenant quickly like our American colleagues who have to wait a maximum of 3 weeks to get their properties back, rent will be lower.
The biggest problem a savvy LL has is tenant selection, get this right and it is relatively plain sailing and everybody is happy, get it wrong and it is misery all around and the LL either sells up or has to try to get his/her money back from the rest of his/her portfolio somehow i.e. rent increases.
The Govt doesn't seem to understand that if we don't make a profit from our business, then we will look for another business, or retire, either way this regulatory nonsense will only cause tenants more problems in either higher rent costs or they won't be able to find anywhere to live. If the Govt is trying to improve the lot of the tenants, they are failing miserably with this new RRB or whatever they call it, it is all bluster and Bollo£ ks as far as I can see, and will only cause rents to rise faster and take more good LLs/properties out of the PRS, but again, all portfolio/professional LLs know this, what a shame that some ministers don't look at the comments in these posts, at least then they could maybe gauge the truth in a more balanced way and see what their policies are likely to produce a bit further down the road, rather than to further blindly destroy their voting majority as they did with the disastrous winter fuel payments debacle.
Build more homes, that's all they need to do, this gives tenants far more choice, it will make the market more competitive and so rents will probably decrease and of course, only shi£ty tenants would then need to live in shi£ty houses, and this, of course, serves them right.
I'm sure that I am not the only person here who sees this, regulation is not needed apart from strengthening the rights of LLs and building more homes. Thats it, simples! Everything else is Bolloc£s.
Cider Drinker
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Sign Up10:56 AM, 17th September 2024, About 2 months ago
Reply to the comment left by Markella Mikkelsen at 17/09/2024 - 09:43
It may already be too late to issue Section 21 Notices.
With S21 being abolished as soon as the Bill receives Royal Assent, will S21 possession hearings that are already queuing to be heard in court, go ahead?
The PRS will shrink. Even if landlords cannot regain possession through S21, the properties will be sold as soon as tenants vacate of their own free will or as soon as a valid Section 8 Ground is available.
Significant changes to legislation should be a mandatory ground for possession.
Reluctant Landlord
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Sign Up11:20 AM, 17th September 2024, About 2 months ago
also remember if T is on benefits they pay a month in arrears so they would need to be in at least 4 months arrears not 3 like everyone else (according to current proposals)
This specifically discriminates against LL's who have/take on benefit tenants.
Rent arrears HAS to be a mandatory ground after 2 months. LL's cannot afford this - why should they be expected to? Also means if the non payer is removed it frees up the accommodation for someone else.
A LL with a T in serious arrears and a long possession wait is far more likely to sell the property after getting possession than a LL who may get possession earlier.
Paul Essex
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Sign Up11:23 AM, 17th September 2024, About 2 months ago
The other issue here is that the public is being told three months for rent arrears but as Paul has stated above it is three months before we can start the process and then we start on court delays and 'breathing space ' etc
Bernard Mealing
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Sign Up12:23 PM, 17th September 2024, About 2 months ago
so if the tenant stays under the limited for mandatory groups for rent arrears... meno to he who won't listen. Ensure that all landlords have licences to lend money. Now that a good money earner for the government I had an agreement with my Bank manager. I won't lend money and he would not enter the B 2 Let market
Ian Narbeth
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Sign Up12:37 PM, 17th September 2024, About 2 months ago
“Without landlords, the private rental sector (PRS) collapses. As more landlords exit, rents will rise, and housing will become scarcer, ultimately harming tenants." Spot on. Listen, MPs, listen!
"Protecting tenants is crucial, but without fixing the court system, the entire rental market faces chaos.” Sorry, Paul Shamplina, I disagree with the first part. Tenants do not need an extra 5 weeks protection against paying rent and then the landlord still has to give four weeks notice and then wait for ages for a court date.
If a tenant is in temporary financial difficulties, sure they need help and many landlords will give time to pay or forego some rent. But ultimately if the tenant cannot afford (or cannot arrange their finances so as to afford) a property, they should be encouraged to leave the PRS promptly and the State, Councils and Housing Associations need to step in. Private landlords are not charities and should not be forced to bear increased losses (which the 13 week rule will inevitably cause.)
All this will do is make landlords choosier, mean more tenants will have to provide guarantors and rents will increase to reflect increased risks and the cost of rent guarantee insurance.
Bernard Mealing
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Sign Up12:38 PM, 17th September 2024, About 2 months ago
Reply to reluctant LL
If your tenancy agreement said 1 month up front and the council pays in arrears. the tenant is Legally. 1 month in arrears on the first day of the agreement the laws of tort would deem it to be in arrears. so after 32 days 2 months arrears.
Richard Spong
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Sign Up14:31 PM, 17th September 2024, About 2 months ago
If we are heading for a chronic shortage of rental accommodation, are we sure building all of these proposed new houses will resolve the problem. Who will own them ?
Not private landlords. Most renters cannot, or do not wish to be property owners.
Are we sure builders will build thousands of houses and then sell cheaply to housing associations ?