Renters’ Rights Bill sparks landlords’ worries over Section 21

Renters’ Rights Bill sparks landlords’ worries over Section 21

0:02 AM, 4th October 2024, About 3 months ago 5

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Most landlords (75%) are expressing huge concerns about the government’s plans to abolish Section 21 ‘no-fault’ evictions as part of the Renters’ Rights Bill.

A survey conducted by buy to let lender Landbay revealed that landlords’ primary concern is a loss of control over their properties and their ability to remove problem tenants.

They argue that the ability to evict bad tenants is crucial for maintaining control of their investments.

‘Reform has long been on Labour’s radar’

Landbay’s sales and distribution director, Rob Stanton, said: “Rent reform has long been on Labour’s radar and formed a key part of its election manifesto.

“We knew this would be a priority for the new government and it looks like it plans to move quickly.

“Nonetheless, our research shows that landlords have significant concerns about the new Bill, particularly around ‘no-fault’ evictions.”

He added: “While no decent landlord will object to tenants being treated fairly, they argue that the property owner deserves the same rights.

“We have to hope that, as the Bill starts its long journey through parliament and the House of Lords, amendments are made to create a fairer piece of legislation that doesn’t negatively impact supply or rent for tenants.”

Increase tenant security and stability

While the government aims to increase tenant security and stability by abolishing Section 21, landlords are concerned about the potential impact on the court process.

They fear that the already slow and lengthy court system will become even more overburdened as landlords seek to use Section 8 powers instead of relying on Section 21.

One landlord warned: “To have any faith in these proposals is to be naïve with regard the capacity of the British court system to handle the workload in a reasonable time.”

Another added: “Currently, the courts are overwhelmed with the amount of requests they get. The courts need to cope before the Bill is implemented.”

‘Abolition of Section 21 is completely wrong’

One landlord expressed frustration with the proposed changes, stating: “Abolition of Section 21 is completely wrong – landlords need to be able to take back control of their property, if so desired, once the fixed term AST (Assured Shorthold Tenancy) has expired.”

Another landlord echoed these sentiments, calling the abolition a “catastrophe for landlords” that would deprive them of any control over their properties.

‘Relationship between tenant and landlord’

Deputy Prime Minister and Housing Secretary Angela Rayner has defended the government’s plans, stating that the Bill will “rebalance the relationship between tenant and landlord and end no fault evictions – for good.”

Housing Minister Matthew Pennycock has indicated that he hopes the new rules will be in place by next summer.

Mr Stanton said: “It’s important to remind landlords that the buy to let sector and the private rental sector is no stranger to new legislation.

“Add in changes of government and economic crises, the sector continues to thrive.”


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Monty Bodkin

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8:40 AM, 4th October 2024, About 3 months ago

Mr Stanton said: “It’s important to remind landlords that the buy to let sector and the private rental sector is no stranger to new legislation.

“Add in changes of government and economic crises, the sector continues to thrive.”

In other news;

https://www.property118.com/rental-market-frenzy-tenants-face-25-enquiries-per-property/

"The rental market in the UK is experiencing a frenzy of activity, as letting agents report an average of 25 enquiries from prospective tenants for every property on offer."

Monty Bodkin

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Northernpleb

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13:36 PM, 4th October 2024, About 3 months ago

Hi Monty ,
I think you will agree Its not a Renting Frenzy, or a selling Frenzy we need. Its Rental Properties for the tens of thousands of renters that need a home which was why Thatcher bought in the legislation.
There is absolutely nothing in the Renters Reform Bill that would encourage any one to invest their hard earned in BTL .

A lot of Landlords like me have Tenants that have been in their properties for years. No Landlord I have ever met evicted a Good tenant. Now with RRB many will have no option

Monty Bodkin

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16:53 PM, 4th October 2024, About 3 months ago

Reply to the comment left by Northernpleb at 04/10/2024 - 13:36
Couldn't agree more.

This will cause far more harm than good to the huge majority of tenants.

I remember the rental market pre section 21. “Those who fail to learn from history are doomed to repeat it."

Downsize Government

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21:28 PM, 4th October 2024, About 3 months ago

Housing is already an illiquid asset. Removing section 21 will make it more risky and illiquid, putting off investors.

Consequence long term, underinvestment in houses.

Which is why the government owned banks are trying to backfill investment.

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