0:03 AM, 17th September 2024, About 3 months ago 21
Text Size
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.
Previous Article
Evicting a protected tenant for not paying rent increase?Next Article
Revealed: Renters' Rights Bill's Hidden Loopholes
Reluctant Landlord
Become a Member
If you login or become a member you can view this members profile, comments, posts and send them messages!
Sign Up15:21 PM, 17th September 2024, About 3 months ago
Reply to the comment left by Bernard Mealing at 17/09/2024 - 12:38
yes I understand that but the RRB made special note of this stating if T paid benefits and paid a month behind this is taken into account, but not for the benefit of the LL. Means the T if on benefits has to be still 4 months clear in arrears...you can't include the month in arrears in the total rent arrears calculation.
Reluctant Landlord
Become a Member
If you login or become a member you can view this members profile, comments, posts and send them messages!
Sign Up15:30 PM, 17th September 2024, About 3 months ago
Reply to the comment left by Richard Spong at 17/09/2024 - 14:31
the reality is that IF any properties are built the majority will wither be FTB or shared ownership (where T has to have an income to warrant the part purchase and part rent).
Affordable and social rent properties can only be factored in if the other properties on the development are priced accordingly (higher) to take account of the subsidy it takes to be able to release some at afford/social rents.
If the full cost properties are too expensive they will remain unsold. With rising build and labour costs now some developments are having to reduce the planned number of aff/social rents promised just to be able to finish the development and recoup outlay asap. So instead of 20 houses and maybe 8 being aff/social rent, its gone down to 3 or 4.
HA's also then have to run and maintain what they take on. They can't afford to do that either at the rents they charge so its not sustainable.
Basically it's a right bloody mess - but we all know this already!
Bristol Landlord
Become a Member
If you login or become a member you can view this members profile, comments, posts and send them messages!
Sign Up15:52 PM, 17th September 2024, About 3 months ago
Reply to the comment left by GARY RIVETT at 17/09/2024 - 10:45
“The Govt have no idea what is happening in the PRS.”
“The Govt just has no idea how the system works,”
“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.”
“If the Govt is trying to improve the lot of the tenants, they are failing miserably with this new RRB.”
The Govt knows exactly what is happening in the PRS, how the system works, that landlords need to make a profit and that they are not trying to improve the lot of the tenants.
The Govt is deliberately destroying the PRS by driving out independent landlords to replace us with corporations.
Will P118 block this comment as it has done with several others because I try to convey the message that the chaos in the PRS is deliberate and not accidental, we will see.
Lordship
Become a Member
If you login or become a member you can view this members profile, comments, posts and send them messages!
Sign Up15:54 PM, 17th September 2024, About 3 months ago
Not enough emphasis on the time it takes to regain your property back and get a problem tenant out.
Those associated with evictions should be letting people know that you will be looking at around 12 months or more now to regain possession and possibly with no rent being paid or any chance of getting it back.
How could any government, tenant charity, or anti-landlord group argue against that?
PH
Become a Member
If you login or become a member you can view this members profile, comments, posts and send them messages!
Sign Up18:24 PM, 17th September 2024, About 3 months ago
Reply to the comment left by Cider Drinker at 17/09/2024 - 10:56
From what I've read s21 notices will carry on as normal until the new bill becomes law. S21's already in the system will go through so there's still plenty of time to serve them.
Paul Essex
Become a Member
If you login or become a member you can view this members profile, comments, posts and send them messages!
Sign Up11:15 AM, 18th September 2024, About 3 months ago
Reply to the comment left by PH at 17/09/2024 - 18:24
I like your optimism but I can't see Section 21's being completed. Every case would go to appeal and I suspect would be quashed, evictions using a banned process would be too politically damaging.
russell branch
Become a Member
If you login or become a member you can view this members profile, comments, posts and send them messages!
Sign Up12:03 PM, 18th September 2024, About 3 months ago
Reply to the comment left by Bristol Landlord at 17/09/2024 - 15:52
At last someone here stating the truth that the destruction of the private landlord in the UK is a deliberate act.
cashcow
Become a Member
If you login or become a member you can view this members profile, comments, posts and send them messages!
Sign Up16:34 PM, 19th September 2024, About 3 months ago
LLoyds bank are planing to be on of the biggest Landlords with 50,000 homes by 2030.
Its all planed by the business men who run the Government.
let the people fight amongst each other while the banks etc go in and buy the lot in an off shore secret account to add to the trillions already kept there with all the dirty money avoiding tax.
Bristol Landlord
Become a Member
If you login or become a member you can view this members profile, comments, posts and send them messages!
Sign Up18:06 PM, 19th September 2024, About 3 months ago
Reply to the comment left by cashcow at 19/09/2024 - 16:34
Exactly, and that’s why the Govt wants independent landlords out of the way.
They have deliberately created an unlevel playing field with all the advantages given to the corporate landlords.
Independent Landlords are driven out of the PRS which generates hundreds of millions in CGT which I predict will be funnelled back to Lloyds Bank etc in the form of subsidies and tax breaks etc.
Landlords selling creates shortages of property to rent and many desperate renters with nowhere else to go but the loving arms of the corporations.
PH
Become a Member
If you login or become a member you can view this members profile, comments, posts and send them messages!
Sign Up18:23 PM, 19th September 2024, About 3 months ago
I'll leave on my terms as and when I am ready regardless of what these imbeciles in power say or do and then I'll be out of the country that pays me my pensions and I'll have a great time on the full selling price of my property. Over to you TTK.