Landlords, You Can’t Sell Up! New Rules on Evicting Tenants Within 2 Years

I agree with not allowing evictions in the first two years should the landlord decide to sell. Letting property ought to be a longer term commitment.
One exception should be when the landlord specifically markets a property for a fixed period. Perhaps if the work abroad for a period of less than 2 years.
Of course, what we really need is some confidence that once the 2 years are up, the property will quickly be returned to the landlord. This won’t happen. Labour will move the goalposts again if it looks like landlords are selling up after two years.

Most tenancies are of a fixed term.

There are many landlords who are coming up to retirement/retired/have financial difficulties who may wish or need to sell.

Could this new legislation be retrospectively applied?

Will ALL new tenancies, from the date of legislation in force, have to be 2 year ASTs with no break clause?

If the landlord is overstretched on loan to value and default will the lender then become liable to continue the tenancy? Able to evict the tenant(s) to sell?

If not then logically loan to values will be drastically reduced? (probably a good thing) = the pool of PRS landlords entering or staying in the sector when re-mortgaging reduced = less properties available = higher rents and greater selectivity by landlords for a tenant(s).

For the first time I am seriously thinking of getting out of the btl business. The Conservatives were bad enough but now the looney left are in its rapidly becoming a farce. Sell up and put it all in stocks and shares/fixed income. A lower return for sure (maybe 3.5% v 5%) but I can live with that and no worrying about what else these idiots are going to bring in. My only reluctance is one or two good tenants who have been renting from me for years (one lady in her 70's has been with me for 10 years). I'm not sure there is realistically any other choice...

Reply to the comment left by Judith Wordsworth at 07/08/2024 - 11:08
Maybe the aim is to get all properties in the hands of the banks, as we all know they've entered the sector and Labour seem to want big businesses running the show.
It won't solve anything but but that's my conspiracy for day.

Reply to the comment left by Brian Hewett at 07/08/2024 - 11:23
Hi
As an interesting aside, are you aware the US Federal Reserve has asked the larger banks to prepare “living wills” detailing how they can safely be dissolved…
The analyst who gives the most perceptive and trenchant analysis is Dr Ankit Shah - process of de- colonisation, de-radicalisation, de-dollarisation, ouster of the USD and trade in bilateral currencies.
There will be a major financial reset from next year.
High paying tech jobs will disappear.
US commercial property will take a major hit, followed by residential property, as the tenants will not be earning enough.
Already S&P and Nasdaq has lost trillions.
Warren Buffet has sold huge chunks of Apple and a large American bank stock.
It is described as prudent management as he was overweight in those stocks.

Reply to the comment left by Judith Wordsworth at 07/08/2024 - 11:08
Most tenancies are not OF a fixed term. They include a fixed term but the tenancy continues beyond the fixed term.

I assume these new rules aren't in force yet? When is Labour thinking of putting them into force?

Reply to the comment left by Cider Drinker at 07/08/2024 - 12:13
I agree that periodic tenancies should be made at least six months intially.. And then two yearly.. But are you sure most tenancies are periodic? I have thirty years experience and the few periodic tenancies I managed were at the tenant's wish.

I don’t know for sure buy pot why would a landlord go to the trouble of creating a new AST when there’s no need?

Of course, most NEW ASTs will be for a fixed term initially but they all turn to periodic when the fixed term ends.

Reply to the comment left by Cider Drinker at 07/08/2024 - 12:13
The TA (agents TA) for my property states that 2 months before the end of the fixed term the tenant and LL will be asked if they want to renew the TA at the end of the fixed term. If one or both do not want to then the tenant must leave at the end of the fixed term.