The Queen’s Speech has confirmed that a radical re-shaping of the rental sector in England is being pushed ahead by the government.
Although the relatively brief speech delivered by Prince Charles - deputising for Her Majesty - made superficial reference to housing and planning, details released just after the speech put flesh on the bones.
A Bill will abolish what the government has called 'no fault' evictions - section 21 evictions - “giving renters better rights when they are told to leave despite complying with the terms of their tenancy.”
The details also say that there will be additional reform of landlords' grounds for possession to give them greater powers to tackle repeated rent arrears or anti-social behaviour among tenants.
In addition, a new ombudsman for private rented landlords will ensure disputes can be easily resolved without going to court.
“These reforms will help more people own their own homes” according to the government.
The Leasehold Reform Act 2022 will come into force on 30 June, and this will - amongst other things - stop landlords requiring ground rent for new long residential leases.
It will also mean banning new leasehold houses to ensure that all new houses built are freehold.
The government has given details of the Renters Reform Bill, which will:
- remove Section 21 of the Housing Act 1988 providing in the government’s words “security for tenants in the private rented sector and empowering them to challenge poor practice and unfair rent increases without fear of retaliatory eviction”
- reform possession grounds for landlords, “introducing new and stronger grounds for repeated incidences of rent arrears and reducing notice periods for anti-social behaviour, ensuring that they can regain their property efficiently when needed”;
- apply the legally binding Decent Homes Standard in the Private Rented Sector for the first time ever, giving tenants safer, better quality and better value homes;
- introduce a new Ombudsman for private landlords “so that disputes can easily be resolved without the need to go to court, which is often costly and lengthy, and ensure that when residents make a complaint, landlords take action to put things right”;
- introduce a new property portal to help landlords understand their obligations, give tenants performance information to hold their landlord to account as well as aiding local authorities.
And the government says: “We will shortly publish a White Paper which will set out more detail on our proposals for landmark reform in the private rented sector."
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Enough is enough time to quit and let the charities and government look after the homeless. Not worth the hassle and return on capital. Just end up paying for ever increasing expenses
I’ve got some **** of
a tenant at the moment and that’s with S21’s existence which should be some sort of threat. What will she be like when she has all the power?? I’m getting out too! Let them have ALL the rights over NO properties left to rent.
We’ll it’s a pretty sensible bill, but in reality, Landlords only evict bad Tenants anyway.
On the surface these sound sensible things - who would not vote for this? But how they translate into reality is likely to be something very different.
There will be cases of some particularly difficult Tenants persecuting their landlord while staying within their rights. Tiny little maintenance issues will become escalated unless Landlords jump at the tenants call.
Exactly. They will have a LL’s register to note their unfounded problems, a redress scheme, the Council, no win no fee solicitors, legally aided and courts.
LL’s will be made to jump at every whim of a tenant or be forced to sell the property just to get out of the whole situation.
Well let's see the detail and all the small print
I can only see it being worse.
Robert Snead, how can it be a sensible Bill have you taken leave of your senses, this is total disaster when we are governed by 160 + pieces of legislation already just add some more brilliant. As you say only bad Tenants get evicted in which case why remove the only instrument available to landlords to achieve this.
It’s removed of owners freehold rights, why would any LL buy under those Terms unless you are a Benefit LL all borrowed up to house Benefit Tenants and Government finance the lot sit around and no HMO to worry about it will become yours at tax payers expense.
Do they mean this June 2022 in which case it’s a impossible time limit to prevent LL’s from taking action, after they gave years kicking it around.
This is a bit like like licensing Schemes it might take them several months to process the application (look at it) then only give you 10 days to respond when they eventually decide to respond to you.
It looks like they are converting us into housing associations. I thought we lived in a Democracy but this is tantamount to confiscation.
They think a Landlord should have the financial responsibility to lay his own money on the line to House others and hand them complete control as well.
Have a nice day.
Totally agree with you Michael. I think slowly but surely we are going back to the bad old days of Protected tenancies. Shelter, Generation Rent and the other lot, will not settle until they get what always asked for. That is "open ended tenancies". I think Section 1 of the LPA 1925 will be added a subsection 3, "term of years indefinite". For that I am out. I waited for this Bill to be announced , then make a decision whether to stay in the industry or not. EPC is next. Do I need all this? No I don't.
Almost totally agree.
June 2022 relates to developers not being able
to sell house as leaseholds reading above. I don’t believe they could ever remove S21 ‘overnight’.
A white paper is due.
Love the way the national landlords register has been rebranded a "landlord property portal". If there is no proper accelerated Court process that works to enable landlords to take back possession quickly for a variety of reasons where tenants are not conforming, the government faces 2 immediate real problems. 1) a tsunami of S21s when we know what the cut off is for the new leglislation as landlords play safe, go back into the market for an "Alpha" tenant paying a market rent. 2) for those landlords that remain, if at least in the medium term, how to encourage them to let to the bottom half of the tenant barrel. The Tenant Fees Acts already marginalised tenants with lower incomes, pets, small children etc, the RRB will make this even more acute, as landlords look for as close to zero risk as possible.
Reading between the lines the message is clear:
“Strengthen your referencing, and don’t take any risk whatsoever with who you rent to because if it goes wrong, you’re on your own”
The poorest renters will now have even more difficulty securing a rental. Another win for the activists
Only 5* gold plated tenants with a guarantor need apply, the rest can go talk to Shelter
Far too many naive people waving this all through saying it’s good/sensible. Wait until you get a bad tenant.
Ben Beadle approves this anti-landlord Bill. He is the Chief Executive of NRLA that is supposed to represent its Members he has no right to hold this office while agreeing with Alicia Kennedy ganging up against Landlords Rights. Disgraceful behaviour by our CEO and he should resign immediately. I will be parting Company with NRLA after 16 years of loyal service, even though Council are making it a requirement to be a member of a Landlord Association.
I will be reviewing my Insurance Policy’s connected to this Organisation
How many legal professionals is it going to employ ?
How many legal professionals is it going to employ ?
Margaret Thatcher rejuvenated the private rental sector with introduction of Assured Shorthold tenancies and abolishing rent controls back in the 1980s. Before then a property owner needed to be a sandwich short of a picnic to consider letting a house, flat or even a room so homeless figures were ever going higher. Todays Conservative government that's about to abolish ASTs and reintroduce rent controls must must have her spinning in the grave.
Let us wait for the white paper, but if i am honest i think the writing is on the wall for me, this is not my main concern as my tenants are long term and excellent, i have already made the decision that when they leave i will sell anyway. It is the EPC C which scares the bezejesus out of me, if that comes in then i cannot keep renting to my excellent tenants. Bad times ahead i fear.......for tenants.
Yes it's good tenants that will be paying the price
“These reforms will help more people own their own homes” according to the government. How can this possibly be the case?? Do they mean there will be less properties available to rent, so people will somehow have to buy? In which case they will have to force mortgage lenders to completely change their criteria to 100% mortgages and no affordability or credit checks.
Generation Rent/Shelter & Co . Repeat after me …….The PRS is not a Social Housing Provider….The PRS is not a Social Housing Provider!!!
Well, the berks have taken over the asylum. Just you watch all the wringing of hands and bewildered looks as they all fail to work out why there’s no rented housing available. That at least will be quite funny, even if nothing else about this moronic government is.
The government is relying on removal of section 21 and promise of rent controls to get the labour vote come next election but with so many section 21s likely to be issued before it is outlawed causing already high homeless figures to rise further they may have shot themselves in the foot and I can't imagine many ex landlords voting Tory this side of hell freezing over.
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