Levelling Up White Paper – S21 abolished – Landlord register – Decent homes standard

Levelling Up White Paper – S21 abolished – Landlord register – Decent homes standard

7:59 AM, 2nd February 2022, About 3 years ago 78

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Section 21 ‘no fault’ evictions will further be abolished, ending the unfair situation where renters can be kicked out of their homes for no reason.

We will consult on introducing a landlords register, and will set out plans for a crackdown on rogue landlords – making sure fines and bans stop repeat offenders leaving renters in terrible conditions.

The government will announce a plan that for the first time ever, all homes in the Private Rented Sector will have to meet a minimum standard – the Decent Homes Standard.

The above are the key plans that affect landlords directly in the government’s flagship Levelling Up White Paper being promoted today by Secretary of State Michael Gove. Click here to read the full press release.

The government aim is that by 2030, renters will have a secure path to ownership with the number of first-time buyers increasing in all areas; and the government’s ambition is for the number of non-decent rented homes to have fallen by 50%, with the biggest improvements in the lowest performing areas.

Other plans for the housing market include:

The government will support 20 of our towns and city centres, starting off with Wolverhampton and Sheffield, undertaking ambitious, King’s Cross-style regeneration projects, transforming derelict urban sites into beautiful communities. This work will be spearheaded by Homes England, which will be repurposed to, in addition to its existing functions, regenerate towns and cities.

The ‘80/20 rule’ which leads to 80% of government funding for housing supply being directed at ‘maximum affordability areas’ – in practice, London and the South East – will be scrapped, with much of the £1.8 billion brownfield funding instead being diverted to transforming brownfield sites in the North and Midlands. The Metro Mayors will be allocated £120 million of this funding.

Home ownership will be boosted due to a new £1.5 billion Levelling Up Home Building Fund being launched, which will provide loans to SMEs and support the UK government’s wider regeneration agenda in areas that are a priority for levelling up.

The government will further commit to building more genuinely affordable social housing. A new Social Housing Regulation Bill will deliver upon the commitments the government made following the Grenfell tragedy in 2017.

The government will give local authorities the power to require landlords of empty shops to fill them if they have been left vacant for too long.

Michael Gove said: “The United Kingdom is an unparalleled success story. We have one of the world’s biggest and most dynamic economies. Ours is the world’s most spoken language. We have produced more Nobel Prize winners than any country other than America.

“But not everyone shares equally in the UK’s success. For decades, too many communities have been overlooked and undervalued. As some areas have flourished, others have been left in a cycle of decline. The UK has been like a jet firing on only one engine.

“Levelling Up and this White Paper is about ending this historic injustice and calling time on the postcode lottery.

“This will not be an easy task, and it won’t happen overnight, but our 12 new national levelling up missions will drive real change in towns and cities across the UK, so that where you live will no longer determine how far you can go.”

Party Minister Boris Johnson said: “From day one, the defining mission of this government has been to level up this country, to break the link between geography and destiny so that no matter where you live you have access to the same opportunities.

“The challenges we face have been embedded over generations and cannot be dug out overnight, but this White Paper is the next crucial step.

“It is a vision for the future that will see public spending on R&D increased in every part of the country; transport connectivity improving; faster broadband in every community; life expectancies rising; violent crime falling; schools improving; and private sector investment being unleashed.

“It is the most comprehensive, ambitious plan of its kind that this country has ever seen and it will ensure that the government continues to rise to the challenge and deliver for the people of the UK.”


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Adrian Alderton

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10:17 AM, 2nd February 2022, About 3 years ago

Agree with most of comments. A risk too far for many landlords even with Rent guarantee insurance if its still available.
My understanding of law however is that they cannot introduce it retrospectively on existing tenants. So although a new layer of complexity, at least those who want to sell can wait for existing tenants to leave if they so wish or still be able to use the current legislation governing repossessing shorthold tenancies. Enabling selling to reduce their investments over time.
Does that sound right?

Denise G

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10:42 AM, 2nd February 2022, About 3 years ago

Nine times out of ten when I see or read or anything about REALLY bad housing issues where landlords are failing to meet even minimum standards, the property in question is owned and 'managed' by Local Authority or Housing Associations! Does that get a mention or once again is it just the Private Rented Sector they have in their sights?

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10:52 AM, 2nd February 2022, About 3 years ago

Reply to the comment left by Chris Bradley at 02/02/2022 - 08:15
Chris, selling is my first thought too. My second thought is .. bloody hell - the captal gains tax.

Any plans to help with that? (other than move in to them)

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11:08 AM, 2nd February 2022, About 3 years ago

Law of unintended consequences, law of supply and demand etc etc

a very rare thing the other day, my town made the news! Rents have gone up 17% in a year. Landlords are leaving the market. Agents have almost zero properties to let, the story I heard from both a renter and an agent (so verified) is that one bulk standard flat offered at £750 went for £850 after some frantic gazumping on the first weekend.

like others I haven't done a S21 for maybe 25 tenancies, I build good long term (several years) relationships with decent people. I rarely do in term rent increases, I find it terribly awkward but I'm putting double digit % increases in this year. And after the initial shock of 'I cant afford this, I'm going to look around' they've all accepted them.

The market will deal with this, I dont think it will be the intended solution.

JB

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11:32 AM, 2nd February 2022, About 3 years ago

Reply to the comment left by Roanch 21 at 02/02/2022 - 11:08
I know of someone who had to bid £100pcm over the asking price to get a tenancy ... and they weren't desperate as they were living with family.

Another MUCH smaller flat in a block where I rent one for £725 (I've just increased the rent) is up for £850 and they fully expect to get it.

The problem is the tenants blame the landlord instead of the policy makers.

POOR TENANTS!

Jane Tomlin

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11:35 AM, 2nd February 2022, About 3 years ago

Reply to the comment left by DSR at 02/02/2022 - 10:11
I have asked my MP for a precise date and will post here when I get it.

psquared

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11:49 AM, 2nd February 2022, About 3 years ago

I am sick and tired of being the governments whipping boy and cash cow.
I have been a landlord for 20 idd years providing about 60 people with fair quality reasonable priced accommodation.
Over the years my rights have been chipped away at till the point Im thinking enough is enough.
How it can be fair that interest payments are not a legitimate expense you can offset against profits and how the ever more onerous burden of rules regulations and fines can be approved by a conservative government is baffling.

I’ve made the decision to get out. All i need to do now is find the most tax efficient ways of selling up
My portfolio. So in the next 5 years I will be gone from this market ( apart from conmercial).

The vast vast majority of landlords I meet are decent hardworking people who took a chance and invested. Most od the property i see is of a fair to good standard ( given I am dealing with mainly hmo’s and lower coat rental properties).

I am sick of feeling like some sort of leech on society because i dare to charge people to live in a 200-400k asset i own.
And i dont know if others have found the same but tenants are becoming too demanding and unreasonable.
I had a boiler break down pn 24th Dec. I got an engineer there the same day but he coulsnt get the parts till 28th December. I provided 4 hearwrs a water boiler amd £50 to cover extra electric. Not ideal I appreciate but christmas eve is not a great time to have a breakdown.

These were 4 adult males in the house.

They starting demanding to be put up in hotels, to get compensation for suffering, that Inwas causing them ill health. Also 2 of them i have resuced rent by 20% as they their job because of Covid.

They bombarded me with demands and threats of legal action. And i thought I dont need this anymore and that was the last straw and now thanks to inland revenue, my local council
And hm government i am vacating this sector.

I expect im not alone! So when landlords leave en masse after a move to far who is going to house all these people.

Probably the bug boys but can you imagine what will happen when they have enough dominance of this sector.

Simon

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11:57 AM, 2nd February 2022, About 3 years ago

Reply to the comment left by Chris Bradley at 02/02/2022 - 08:15
There are people who will buy with tenants. Other Landlords or even, property companies?

Jane Tomlin

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12:02 PM, 2nd February 2022, About 3 years ago

Reply to the comment left by Simon at 02/02/2022 - 11:57It depends how long you are happy to tie your money up for. Lots of landlords are retired and can't tie their money up indefinitely.

Ann Shaw

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12:17 PM, 2nd February 2022, About 3 years ago

It is a clear fact, that there are more 'good' LL's out there than bad, FACT - All the Government will seek to do here is force out of the marketplace more 'good' LL's, who currently offer good quality housing.

This has always been a vote-wining agenda. Not content with taxing us on turnover (s24), they will now seek to take the one final remaining element of control we have on our properties/investment. Removing our choices to give notice (for whatever reason we have as LL's) removes our human rights and will make running this hideous business totally untenable moving forward.

I wonder what RGI Insurance and mortgagees will think of this? In a nutshell, there will be fewer good rental properties out there for tenants to rent, which culminates in a supply and demand issue. Therefore, pushing up rents further as LL's continue to sell.

As for 'by 2030', I would be very diligent to watch when this new statute law comes into effect. I expect it will be sooner than later.

I will continue to sell my properties, giving my good tenants notice while I still can with a s21.

Well done Gove and your Government, what a fabulously intelligent thought out plan!!! To think I voted Tory (again) at the last election. The Tories are now becoming nothing more than a rejigged left-wing 'Shelter' organization, kowtowing to the greater voting public!!!

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