0:03 AM, 11th October 2024, About 4 minutes ago
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Nigel Farage has slammed the Renters’ Rights Bill as a “huge mistake” and says Ed Miliband’s EPC C rules will cost a fortune for landlords.
In an interview with GB News, Mr Farage says the Renters’ Rights Bill will reduce housing supply and cause chaos in the rental market.
Other industry experts say the Bill will cause uncertainty in the rental market, particularly with the abolition of fixed-term tenancies.
The leader of Reform UK says rents are rising across the country due to a major shortage of housing compared to demand.
Mr Farage told GB News: “There are rogue landlords and there are some tenants that get a rotten deal, there’s no question about that, but here’s the real issue with rents.
“With an exploding population, rents are going through the roof – they’re up about 21% across England over the last four years alone, and that’s an average in some areas – the problem is far more acute, and my real worry is about the supply of housing.
“Now, under the last government, we saw the first shades of this; pressure coming on those that have got Airbnbs because they’re worried about second homes in Cornwall or whatever it may be.”
Mr Farage argues the government’s changes including for all properties in the private rented sector to reach EPC C targets by 2030 will cause landlords to sell up.
He told GB News: “Let’s think about what’s being proposed. It’s not just that if someone is renting from you, you won’t have any means to remove them if you need to; the entire concept of fixed-term contracts would be eliminated.
“Then you’ve got Ed Miliband EPC certificates where you’ve got to bring your house up to a certain environmental standard by 2030 which certainly with older properties, would cost a huge amount of money.”
Mr Farage also claims Conservative legislation such as the introduction of Section 24 has caused many landlords to sell up.
“You’ve also, had the tax changes the Conservatives brought in, for example, if you have a mortgage on a buy-to-let property, you can’t write that cost off.
“What’s happening all over the country is people that own buy-to-let properties are saying, ‘You know what, it’s not worth it. I’d rather sell.’
“That decreases the supply, and that means rents go even higher. I think this is a very self-defeating piece of legislation, even though I understand the intentions behind it.”
Mr Farage claims he will sell his rental property if the Renters’ Rights Bill becomes law.
He said to GB News: “I’ve got a property that I rent out, but you know what? The way it’s going, I may well just sell it. It’ll be bought by a private person and that opportunity for people to take it and use it for a short term let for holiday won’t exist. Who’s the winner in that?”
Mr Farage says the Labour government is threatening property rights and could worsen the rental crisis.
He told GB News: “There is an appeals process against [no fault evictions] and that would kind of go to a court, a junior court, that would decide it.
“I understand the point that if you’re a tenant that is effectively being asked to leave, it may be deeply inconvenient and difficult for you, but against that, rights or property ownership are one of the absolutely fundamental freedoms that we treasure in the free world.
“I think what we’re doing, both the last government and this, we’re encroaching upon that. That, I think, is a mistake and wrong in principle.
“The biggest problem, I repeat, is all that will happen with this legislation is there will be fewer and fewer properties on the market to rent at a time.”
The property sector has reacted to the second reading of the Renters’ Rights Bill with many arguing it will cause a “doomsday to the rental market”.
The Bill looks set to ban Section 21 immediately when the bill becomes law – not when the court backlog has been cleared.
Other measures introduced in the Bill will include applying Awaab’s Law to the private rented sector and making it illegal for landlords and letting agents to discriminate against tenants on benefits and those with children.
Director of Benham and Reeves, Marc von Grundherr, said: “The second reading brings ever closer to a potential rental market Doomsday and should the government persist with yet another ill-devised legislative overhaul, the result will be fewer landlords, less homes for renters, higher rents and an even tougher time for tenants.”
Gareth Atkins, managing director of Lettings at Foxtons, says the abolition of fixed-term tenancies will cause chaos in the rental market.
He said: “The second reading of the Renter’s Rights Bill brings us one step closer to the scrapping of fixed-term tenancies, a move which could destabilise the living arrangements of renters across the nation.
“As it stands, any tenant currently contracted to a fixed-term tenancy will not only have certainty over their living situation but also clarity on just how much they are going to pay in rent.
“This figure is often fixed for an initial term of three years or more, but under the proposed Renters’ Rights Bill, this certainty would vanish and over the space of three years, the same tenant could see their rent increase on multiple occasions.
“The issue is further exacerbated by the fact that there is no transition period in place, meaning those currently contracted to fixed-term tenancies could be hit by rental hikes they haven’t budgeted for as soon as the bill is passed.”
Sam Reynolds, CEO of Zero Deposit commented: “As it stands, not much has changed with regard to the current Renters’ Rights Bill and there is still some way to go before it gains Royal Assent. That’s if it makes it through the House of Commons and a third reading, let alone the House of Lords.
“Whilst improvements to tenant welfare are positive in theory, it’s clear that the government has so far taken a head-in-the-sand approach to the bigger picture, with little consideration afforded to the nation’s landlords and the consequence of deterring them from the sector.
“In doing so, they could well cause more harm than good when it comes to rental market affordability and a tenants ability to actually secure the rental property they so desperately need to keep a roof over their head.”
Siân Hemming-Metcalfe operations director at Inventory Base, said: “Tenant disputes have surged in recent years, and while the Renters’ Rights Bill aims to address long-standing issues in the sector, its current tenant-first focus risks destabilising the market. The reality is that landlords are not just providers of housing, they’re integral to sustaining the private rental ecosystem that over 4.4m people rely on for their homes.
“By sidelining landlords in such sweeping reforms, we risk a shrinking rental market, with fewer available properties and higher rents. This imbalance will ultimately hurt tenants just as much, if not more, in the long run and a sustainable approach requires meeting the needs of both landlords and tenants.”
