Revealed: Renters’ Rights Bill’s Hidden Loopholes

Great 'GBT' Video. It's likely with Labour's majority only a few of these loopholes will be 'tamed' - reference new tenants thoroughly...

Landlords must make the case to their MPs that the playing field has already been tilted heavily against landlords. That has only made things worse for tenants because of the increased costs and risks imposed on landlords. Doubling down and making it easier for tenants to misbehave will help some rogue tenants. It will certainly cause financial harm to some landlords but, on the whole, tenants will be worse off and landlords will be unhappy.

I am reminded of the old adage: If you are in a hole, stop digging.

I warned on this site that if the Renters Reform Bill was passed, Labour would leave it alone and if not they would embellish it. Well, embellish it they have. 13 weeks before you can evict for arrears! Outrageous. What other business has to keep supplying a service to non-paying customers?

I would urge landlords with non-paying tenants (especially the Can Pay, Won't Pay actors) to issue Money Claims Online and register judgments against defaulting tenants on every occasion. That will put pressure on some tenants to pay and will help other landlords to avoid being landed with rogue tenants.

Reply to the comment left by Ian Narbeth at 17/09/2024 - 12:21
I agree Ian but the financial reality for LL's is this is more cost to yourself to do especially if there is no real chance of even getting the money owed back let alone the costs of chasing for it added on.

It will be down to the LL to conduct strict referencing and only the T's able to provide it passing. This will be backed up by legal insurance cover to be called on if necessary and a home owning guarantor. Rent Gtee requirements will no doubt be raised (along with the cost of cover) so all this will be reflected in the rent.

Inevitably this will discount all benefit tenants from being in the running to secure anything. Ironically the councils also can't 'offer' a LL extra rent in advance or guaranteed rent for a certain period tied to a fixed AST period, as there will be no fixed terms permitted. Councils are going to be stuffed. Obscurely the law will actually prevent them securing long term private housing! Oh the irony.

The ONLY two things the RRB will definitely effect - and that's before all the real detail is fully known - is the supply of properties and the rental cost of the same.

Even if every private LL now keeps the properties they have, demand is already outstripping supply, so no more accommodation will be released. There is NOTHING in the RRB that will make it more attractive to rent after it is in place than it is even now - with just the fear causing angst.

What will be left will simply be more expensive. No word on the cost of the LL database they keep going on about, nor the cost of being registered with the Ombudsman, nor the very probably cost of more selective licencing being rolled out.

Costs to a LL only ever means they are passed on to the tenant.

Sounds like we shall just have to wait until the tenants themselves see the effects of the RRB for themselves and they start complaining, because the government is certainly not listening to the PRS.

It will get more difficult to pass costs on due to the rent tribunal...free and risk free to tenants. Tribunals will refuse any rent increases deemed to be excessive and /or above market rate and can even reduce the amount of the current rent. Any big increases need to be made over the next few months otherwise LL will have to absorb most of any future additional costs.
How is the market rate determined anyway ?

I think it’s clear from the video that the PRS for independent landlords has been destroyed. I do not believe these loopholes are mistakes but deliberate. There will be a short term boon for rogue tenants seeking to take advantage of landlords left vulnerable by the RRB. This advantage will eventually fade as more and more landlords exit the sector, as will I. Eventually tenants will discover they have been played by the Govt as the majority of private properties to rent will be from corporations with full market rent and who will refuse to give any leeway on late rent etc. The corporations will also have the best solicitors and will be prepared to go to court without hesitation if there are arrears, that will be built into the rent. Oh and if a tenant has the slightest blemish on his credit history they won’t even get through the front door of the property. I predict for tenants less choice, higher rents and more homelessness. The corporate landlords will be laughing all the way to the bank.
As will the ex Govt ministers with seats on the Board of the said corporations.

So basically, sod property investing, invest your money in chatGPT.