Renters (Reform) Bill: The countdown to a PRS disaster has started

I thought it was too good to be true that the Renters (Reform) Bill would not make it through this Parliament.

And, sure enough, Dishy Rishi didn’t let me down.

At the last minute, as he was no doubt deciding which laws would make it into the King’s Speech, he added the Renters (Reform) Bill. Inspired thinking with an eye on an election next year, or just spiteful?

I don’t know which, but I think on Monday we got a good insight into what the government thinks of landlords in the private rented sector.

We already know they don’t hold us in high regard, but it was nice to have this confirmed.

Hands control of a landlord’s property to the tenant

I’ve mentioned before that the Bill is an assault on the sector and effectively hands control of a landlord’s property to the tenant.

This law is nothing but a disaster for landlords everywhere as it will undermine our rights and interests and create more problems for us and our tenants.

And it’s not just about the abolition of section 21 ‘no fault’ evictions which made the headlines this week as tenant activist groups again demanded that it ends.

Some media coverage also made the point that since it won’t happen this year, then thousands of tenants will be made homeless as heartless landlords hand out section 21 notices without a care.

I find it incredible that at no point is there an attempt at balancing the story. None.

No-one wants to know why a tenant might be evicted – just that there is ‘no-fault’ so the landlord must be bad.

If we as a sector don’t put this right during the passage of the Bill through Parliament, then we have only ourselves to blame.

Focus on the anti-social reasons for eviction

We also need to focus on the anti-social reasons for eviction – we need to stand up and say no neighbour will offer evidence of this type of wrongdoing. None.

Would you?

That means poor tenants will continue making the lives of neighbours – and not to say the landlord – miserable because there’s no catch-all process to evict.

And for those tenants who rack up huge arrears, can I just say that you don’t deserve to have a home to live in. Not in the PRS or in social housing.

You signed a contract to pay rent and then chose not to pay. That’s your decision to do that.

I will say that the local housing allowance is abysmal and does need increasing – at least landlords and the likes of Shelter can agree on that.

Though I was sad to see Shelter’s Polly Neate being quoted in the Financial Times with dubious statistics of people being made homeless.

Again, there’s no attempt by journalists to get a landlord’s perspective on the Bill’s contentious parts.

Countdown began on Monday for a PRS disaster

I say the countdown began on Monday for a PRS disaster when, in reality, it began long ago. The EPC improvement debacle and the Bill’s unveiling helped to put the skids under landlords.

But since new investors are heading into the PRS – because property investment will always turn a profit, right? – we get laughed at by critics who say landlords aren’t leaving.

But they are. Every landlord will know of other landlords who have thrown the towel in.

So, let’s see what happens in the coming weeks because I’m prepared to bet that by the time the Bill becomes law, that the total number of landlords will have fallen substantially.

We still have to get through another winter of critics demanding that rent controls be brought in during this ‘cost-of-living’ crisis. There’s always a crisis of some sort.

Though I’m not sure why critics think landlords aren’t affected by rising bills.

Process to evict a tenant gets longer

The courts also have huge backlogs, and we won’t be getting a dedicated housing court anymore and the process to evict a tenant gets longer. And then they won’t be paying rent!

I also fear that some of the grounds for eviction in the Bill will be too vague or subjective, and that tenants will be able to challenge them easily or abuse the process by making false allegations or counterclaims.

And that will slow the eviction process even further.

So why do we carry on? Why bother with the aggro?

For most of us it is because we have decent tenants who take care of our property.

And without us, they might (will?) struggle to find somewhere to live.

With fewer homes and fast-rising rents, lots of families are going to find out that as landlords leave they should have taken a closer interest in things like the Renters (Reform) Bill and what the potential impact would have been.

The countdown to PRS destruction

My biggest fear, along with the countdown to PRS destruction, is that the Bill will pick up amendments along the way that make being a landlord not only unpalatable but also turns us into pariahs.

Perhaps then, as families are crammed into B&Bs (because the posh hotels are packed with ‘new arrivals’) and rents take an even bigger chunk out of a renter’s take home pay, will the importance of the PRS really hit home?

That’s when as a sector we can say ‘We told you this would happen’ as families are living in tents or the government has to compulsorily buy homes to house people.

Then we might get to see some concessions – and I hope this happens before the Bill becomes law.

Because once the Renters (Reform) Bill is enacted, we will look at what is left of the private rented sector in disbelief that a law aimed at improving the lot of landlords and tenants had the opposite effect.

Though I’m sure we will still get the blame for selling up as a ‘selfish’ act.

Until next time,

The Landlord Crusader

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