Renters’ Reform Bill – Mortgages and RGI?

Ann
If, and it is a big if, Government is true to its word and makes it easier and quicker to evict for rent arrears (and persistent arrears) then section 8 will help. Most of us have survived the moratorium on evictions during the pandemic without mortgagees throwing in the towel.

If premiums go up, it is likely rents will also. Eventually, Mr Gove will see what are the natural consequences of "conservative" policies. Being a highly intelligent man does not make him wise and we need some wisdom in Government at the moment.

Hi Ian,

Thank you for your comments.

I doubt very much that the new proposed s8 (whatever it might be), will be a seamless speedy process in order to evict a bad tenant.

Yes, you're right, mortgagees didn't throw in the towel through Covid. However, that was very much a transient state and not a statutory change to the Housing Act which is coming with the eradication of s21.

I honestly cannot see the Government back-tracking on s21 and can only see droves of Landlords leaving the marketplace (as we are already doing so). Mortgagees either leave the sector entirely and/or products become less attractive with higher rates (to negate potential losses) and harder to obtain.

All I can see is doom and gloom - There is a BIG housing crisis coming the Government's way...

Ian,
I think Gove has already worked out the consequences and doesn't give a damn.

The court system currently is not fit for purpose in London. We Issued a section 8 the tenant did not vacate it took five months to get a date for the court hearing. On that date they granted eviction of the tenant two weeks later. But they took six weeks to write the letter to the tenant telling him they had to be out in two weeks and a further 10 days to post it.
Any way you can come to an amicable agreement without this would be worth a lot

Reply to the comment left by Monty Bodkin at 24/06/2022 - 11:34
Monty, he may be pandering to Generation Rent and the likes of Shelter. However, hurting the people you are trying to help as well as harming the group (PRS landlords) that was probably the most solidly Conservative voting block in the UK is perverse in the extreme.

Reply to the comment left by Ian Narbeth at 24/06/2022 - 12:14
I fear that the Government will actively deny any measures to enable speed and efficiency in the tenant eviction process. It’s not in their interest to do so.

An tenant evicted for cause, such as rent arrears, might seek accommodation from another PRS Landlord, but many may migrate towards the SRS, and as we know, there’s very little available accommodation there. Councils have difficulty enough now performing their statutory housing duty – a rise in demand arising out of more evictions will simply swamp them even more.

Further, following removal of S21 and if evicted under S8, tenants may be deemed to have made themselves intentionally homeless – perhaps excluding them from the SRS - then who is going to let to them?

To me, this bill seems to be just for headline grabbing, providing platitudes to the activists and vote seeking – no joined up thinking on how it will operate in practice.

Far better for the Government to continue allowing PRS landlords to bear all the pain and cost housing the bad tenants. So I’m not holding my breath that evictions will get easier any time soon.

We really need to see what powers will remain, albeit be moved, once s21 is abolished. I think that you are right that, if (as i am sure it will be) selling is a reasonable excuse to evict a tenant, then i think it will all depend on whether repossessions by mortgage companies that take give finance during the term can rely on Ground 2 under section 8. Or alternatively some other means by which a repossession does not have to comply with the inevitable extended notice period that is granted to the tenant.

Reply to the comment left by Ian Narbeth at 24/06/2022 - 09:44
I would not use the word "wise" I'd use "competent".

The Government in many areas is completely incompetent.