0:03 AM, 17th September 2024, About 3 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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David Mensah
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Sign Up9:48 AM, 21st September 2024, About 3 months ago
The sad thing about all this is that the gov't rushing through this legislation will disproportionately affect the poor.
We all know that those at the bottom of the ladder are statistically the most likely to have problems consistently paying rent.
Landlords who now rent to benefit tenants and others at the bottom of the ladder will either drop out entirely, or adapt and rent to tenants who are more likely to be stable. There is already a shortage of supply, and so won't be that hard for landlords to move up in whom they rent to. Reduce supply to a vulnerable population and your create even more chaos.
Everyone knows this will happen without robust ways to remove non-paying tenants.
I understand the political motivations -- it plays well to the young middle class renters who also have a crisis of affordability. Moreover, it is in principle a good idea to improve tenant security and to fix other problems with the rental market.
But, by rushing through this legislation at a time of great pressure on the market, without at the same time fixing the court system, they are going to cause a lot of harm to the most vulnerable.
It is disheartening to see a party that claims to champion the poor taking steps that they know will worsen their plight. Not that the other side is any better b.t.w. It's an indictment of our political system.