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TODAY'S OTHER NEWS

The government puts plans to scrap Section 21 on hold

The government has indicated that it will not scrap Section 21 evictions through the Renters' Reform Bill until at least 2021. 

The Bill is unlikely to be introduced into the House of Commons for debate until after the urgency of responding to the Covid-19 pandemic has passed. 

"With there being no end in sight for the coronavirus pandemic, the housing minister has indefinitely kicked the can down the road by delaying the Renters Reform act until the crisis has passed,” said Franz Doerr, CEO at rental payment technology firm flatfair.

The government’s decision not to outlaw the use of Section 21 to oust tenants who have built up rent arrears during the lockdown period will please many landlords, but not everybody has welcomed this move. 

Doerr added: "At a time when many tenants are more vulnerable than ever, such long-overdue safeguards should be prioritised rather than delayed. 

“Through no fault of their own, thousands of workers have been placed on furlough or made redundant and, once the furlough scheme comes to an end, will be turning to local authorities and government for support with housing.

"But landlords cannot be expected to operate for months with changes to their livelihood hanging over their heads. What is needed is certainty, both in terms of the government's specific intention for the Renters Reform Bill, and a rough time frame that will allow landlords and tenants across the country to plan for the future."

Poll: Do you think delaying the scrapping of Section 21 will fuel a rise in homelessness?

PLACE YOUR VOTE BELOW

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    Mmm Flatfair pandering to the millennials with their zero deposit offer not sure about that. If you cant save for a deposit then you are not ready to leave Mum & Dad & maybe not quite responsible enough to rent a property. (I count myself when I was younger) Ive always believed you get more attention from someone when they have skin in the game by saving for a hard earned deposit.

    As for delaying the scrapping of Section 21 for now well its the smart thing to do and even smarter would be to strengthen Sect 21 to same standards as used in America. Pay or the Sheriff assists you in vacating. Gov are worried about illegal evictions & they should be cos it will happen.
    If you cant pay your rent then back home to Mum & Dad where they can motivate you on a daily basis as to your responsibilities in this life. You can then debate your human rights at the dinner table

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    Landlord bashing must stop! all good landlords should be supported not bashed to death.
    I ,like many Landlords have worked hard,saved,invested in our business. Unlike what people think,we are not all rich,just ordinary people,housing people and helping the country to provide homes.
    Give us a break for goodness sake.!

  • Mark Wilson

    Jahan what a shining example you are of getting on your bike.

    Yes, I like the Sheriff idea too as in the states they show up with a gun.

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    Mark Yeah thats it I knew you reminded me of someone Norman Tebbitt - Good call

     
  • James B

    Flatfair siding with the tenants for obviously reasons .. zero deposit schemes are a complete no no for us.. full of loopholes and admin to avoid payment. If a tenant can’t afford a deposit it’s a bad sign for their ability to pay rent, and then they will have no interest in returning the property in good shape

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    Totally unfeasible.
    It is like not having ANY source of insurance.

     
  • Paul Barrett

    It would be great if the Police were involved in eviction to get rid of rent defaulting tenants.
    UK Police don't tend to need guns unless of course the LL is faced with a massive breach of the peace by a very stroppy and reluctant to vacate tenant.

    Of course this will never happen.
    Govt has no interest at all in assisting LL to make eviction easier.
    It is fantasy to even think they ever would.

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    But it SHOULD be enforced and sometimes a LL faced with bankruptcy, will be desperate to:

    Get the tenant out ASAP
    Retrieve unpaid monies
    Avoid destruction of fittings
    Avoid destruction of fixtures and machinery
    Filth in general
    Avoid having to pay for incredibly expensive refrurbs
    Avoid having to pay very expense court costs, lawyer costs and bailiff costs.

    NONE and I say NONE, of that little load, is ever paid by these thieving non paying low lifes.

    HOWEVER, if it was made a criminal offence, then everything pretty much would be paid up and on time.

    And we ALL know that fact.

    We see that clearly in Germany and Australia.

    If they can do it, why not the UK?

     
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    Get real guys.....Non payment of rent after 1 week, should be IMMEDIATE eviction and classed as a criminal offence.

    Then watch how many defaulters there will be! I might suggest around 1-2% at most.

     
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    I think American police are paid by the local people so maybe they do as they are asked by the piper who plays the tune. Unlike central government who do whatever they please which is what happens in both the UK and USA.

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    Jahan Khan,
    It makes sense to have an effective solution for UK govt - strengthen section 21, by eviction support from Police.

    It will save govt the cost of Legal administrators, judges time, Police costs especially in cases of unruly tenants using other people’s property for growing cannabis farms, and/or those disturbing neighbors peace, damaging landlords assets etc-Win Win for the govt, and the councils since they can then claim further funds to ‘build to rent only’ latest trend of council funded homes & put up all homeless tenants there.

    #RobustS21 is certainly required - if the Govt is willing to implement a realistic solution.

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    Why would the government want to speed up evictions from private lets. A tenant not paying their rent is a tenant who is receiving a subsidy from the private landlord. Kick them out earlier and the state pays for their accommodation.

    Mark Wilson

    Christopher i think you have got it in one. The sector is totally out of favour with Government.

     
  • Paul Barrett

    Precisely!!

    Govt knows it can effectively use LL capital to provide free accommodation for as long as it takes to evict.


    But of course one thing it doesn't like to mention is that for every rent defaulting tenant there is a massive tax loss for Govt.
    Obviously this is to a lesser degree for those LL victims of the bonkers S24 tax policy .
    These LL victims are required to pay tax on fictitious income without any rent income to pay it.

    So what we have is rent defaulting tenants essentially poncing off the taxpayer..
    Annually rogue rent defaulting tenants cause about £9 billion of losses every year.
    Most of this is defaulted rent.
    The tax that isn't being paid is a massive tax loss to Govt.

    Those tenants who do pay their rent are effectively subsidising feckless tenants.

    Yes Govt and Councils save on TA costs by poncing off LL but it results in hard working taxpayers effectively subsidising the feckless tenants.

    More should be made of this massive tax loss.
    Perhaps then society might consider it unfair that LL aren't required to pay tax if they aren't receiving rent which Govt effectively is conspiring in allowing.



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    That is a great way of presenting the issue next time these lot go on about everybody being guilty of tax evasion and its so unfair

     
    Ingrid Mott

    Yes, the whole business of letting is treated punitively by government. THEY want to control our sector, but make us responsible. We small landlords are not classed as employed so cant get any grants or assistance and we can get fined if our delinquent tenants annoy the neighbours. The new mediation system expects us to pay £500 up front to talk over our tenants' delinquency by phone and comply with advice from someone who will never meet our tenant. They only allow 5 weeks deposit, when we must give 8 weeks notice, We pay tax on our capital repayments Then they are trying to force us to take benefit recipients. Finally - lets all quit .

     
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    Why should Landlords/Agents suffer income loss? Who will pay all these rent arrears?
    If government is so concerned why don’t they pay all rent arrears of tenants who have been affected by Covid19.

    Tenant will move without clearing their rent arrears but a landlord with a mortgage will have no place to hide and their property maybe reprocessed.

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    Brillant.......And why indeed?

  • Paul Barrett

    @ingridmott
    Indeed that is what I will be doing hopefully sooner rather than later....................quitting!!!

    Can't wait to get out of being an AST LL despite good profits.

    Too many downsides.

    Be great if we could return to saner times of 2008 forgetting the CC.
    Given the same circumstances I had back then there is simply no way I would have done now what I did back then.
    I'd have one house and hopefully 4 lodgers.
    That would be IT!!

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