The Renters’ Rights Bill: What tenants need to know

Well said.

The Bill erodes the right to property ownership, one of the pillars of our society.
The Bill has more than just the faint scent of Soviet-style state controls of property ownership. And we all know how well that experiment went.
All property owners should be able to choose who lives in their property and who does not.
The day that right ends will be a sad day not just for landlords, but for democraric rights that were so hard fought for.

Brilliantly said.
BUT re “ Angela Rayner’s aim to prevent evictions for ‘economic reasons … arrears not being a ground for possession will have a devastating consequence … We will have no choice but to sell.”
Landlords with mortgages wont have a choice to sell if unable to meet the repayments if their tenants are withholding their rent. The lenders will just instigate repossession. And the Landlord will still be liable for the mortgage repayment shortfall until paid off.
If overstretched loan to value BTL small portfolio Landlords, and are without at least 4 months mortgage repayment monies AND sufficient for repairs/maintenance tucked away, are dithering on whether to stay in the PRS this really is your wake up call.
Even if properties are unencumbered,
small portfolio Landlords who are using the rental income to live on need to have the above mentioned monies tucked away.
Why 4 months? To cover the proposed new notice period and a bit of a cushion.
And for those using rental property/properties for retirement funding, either as regular income or to sell for their retirement, this is, I think, also your wake-up call for leaving or remaining in the PRS.

I think the real aim of the Bill is to see U.K. Nationals lose any hope of renting so that homes can be used for the migrants.

We have already seen Serco outbidding private tenants in order to secure PRS homes for migrants. It is to save costs for housing migrants in hotels. Instead, we house U.K. Nationals in hotels.

It’s much worse than that.

From the BBC…

“Russia's intelligence agency has been on a mission to generate "sustained mayhem on British and European streets", the head of MI5 has said.”

The housing crisis is only the start of the mayhem. Russia is sponsoring the people smuggling gangs and our government know it.

Reply to the comment left by Judith Wordsworth at 11/10/2024 - 10:03
The only question for me what if CGT goes up substantially. My aim is to sell the remaining and so far I have offers going through the legal process. Hoeverv one I am stuck with. So far waiting the legal process to get its act into gear to evict. Rent is being paid. On the other hand if these do not sell before the budget and CGT goes through the atmosphere I have briefly tried looking at the overall long term benefits or disadvantages. Of keeping them. But not letting them out !
Stop the sales and use the one remaining to pay for the empty properties. Ok this will cost me a bit but not all the income - I will still get a profit. Expenses still deducted from profit. I pay the ctax and get tax relief on it. However I’ll have 3 voids doing nothing. On the other side of the ‘benefits’ the LA will be forking out for 3 lots of temporary accommodation- costing them at least 3 times what my rents would have been.
My strategy would be to hope that labour will be gone in about year - 2 years - 5 for sure! Yes this bit is speculation. My grandsons are 8 years away from being adults. Let’s assume they are mature and responsible adults - yes I am stretching even my beliefs in them at present!! So worse case I let them live in them. For peppercorn rents. One they can own as it’s an incorporated rental.
Downsides - I earn less total profit. I pay out running costs.
The building lie empty. They are currently all EPC C - and good C’s. Not marginal.
Upside I stand to save over 80k in CGT (currently) if it increases to just income tax levels on the 30 October.
Plus the house prices will rise! I am effectively helping that rise by leaving them as voids. So even at only 4 % price increases I am ahead of the costs of selling now.
I’d appreciate any comments / views and you can be as blunt as you like.

Reply to the comment left by dismayed landlord at 11/10/2024 - 11:03
Can you not do a deed of trust with your spouse
I have done this 3 times, you can do it up to exchange, 90 /10 in the lower rate tax payers favour
When I sell some, my wife will pack up part time work as she'll be effectively paying 40% on low wages,with her rents
Unintended consequences

All this speculation is very unnerving. I don't like to put up the rent for sitting tenants so most of mine are paying below the market rent. I may have to put them all up and peg them to that from now on, especially if I have to save up for EPC upgrades. I have been talking to some the tenants about them buying their property at a discounted rate too, but if CGT goes up a lot I will have to reconsider that too. I don't understand what they mean by discrimination. Will tenant referencing no longer be allowed? My tenants usually pass the property on to a friend or relative when they leave. Is that discrimination? With the HMOs it's important that the tenants get on, so usually the tenants get a say too. We've made mistakes taking on scallies in the past and it's a lesson learned and not fair on the other tenants,

1. There is no need for any LL to discriminate against benefits tenants - most won't be able to meet rent affordability criteria in the first place nor the standard ongoing requirement of a months rent in advance and all rent payments thereafter to be paid in advance.
2. IF the property is marketed, it will be listed as 'unsuitable for pets/pets not accepted' from the outset. Applicants will know in advance this is the case.
3. There will be a propensity to let to non UK nationals on a work visa over home nationals (non benefit recipients). They often work in the social care sector which is understaffed so jobs essentially permanent. Their right to rent is limited ( if visa is not renewed you can evict in a matter of weeks, literally changing the locks and reporting to the Home Office). They personally have to pay the RIA & Deposit out of their own pocket, rarely have pets because they are always working and are often only here to save/ to send money home plus They will not be eligible for any council assistance or Legal Aid help if they are evicted.

The only thing a tenant needs to know is that anything that increases a landlords costs will be passed on in the form of higher rent.
It is business in it's purest form, value achieved at point of sale minus costs equals profits. No profit equals no viable business.
So if my costs go up my sale price has to rise or I close down.
So it all sounds great until someone asks " who pays for it?".
Then the uncomfortable answer is the tenants.

Reply to the comment left by Judith Wordsworth at 11/10/2024 - 10:03
4 months doesn't cover it. The time spent going through courts will probably mean at least mean 8 - 12 months.

Every time I read the Landlord Crusader's posts to my wife she says "is it actually you?" LOL. Always puts it just how it is!

I will be exchanging on the sale of another one of my houses next week. I've had it over 20 years and really looked after it, but I just can't take the way things are going any more. I used a s21 once, did everything right and still took 15months to get my house back and lost well over £10k in rent and more in damage, Quite normal apparently. I can't imagine no s21 being available.

The problem I have is another 6 London houses all owned for between 25 and 30 years. CGT changes could ruin any exit plans I had overnight, right at a point where I don't want to be doing this any more. CGT aligning with income tax rates, with no form of indexation would force me into what I call "Compulsory Landlordism" ie where you hate the role but it is also financially devastating to exit so you have to do it.