The government has been given the clearest signal yet that substantial numbers of landlords will quit the sector if radical reforms are introduced.
A poll of over 700 landlords by Nationwide-owned service The Mortgage Workls shows just 22 per cent supportive of government plans to abolish S21 eviction powers. Many of the landlords were concerned they could be left vulnerable to difficult tenancies.
If Section 21 was abolished, some 56 per cent of landlords admit they will be more particular about the tenants they accept. This is an especially prevalent view amongst those landlords with larger portfolios with 62 per cent of those with 20 or more properties saying they will be more particular.
And a full 25 per cent of landlords admit they will sell some or all of their properties if this proposal happens. That rises to 32 per cent of those landlords with large portfolios of 20 or more properties.
On the proposal for a National Landlord Register, 62 per cent of responses are supportive while 32 per cent oppose the idea. Part of the lack of support may be because more than half of landlords do not believe introducing such a register will have any impact in deterring rogue landlords. That rises to 66 per cent of landlords with 20 or more properties.
When asked why they don’t believe the introduction of a National Landlord Register will deter rogue landlords, comments included “Rogue landlords have no concern about the law” and “People who are desperate for somewhere to live will rent from unregistered landlords” and “Rogue landlords don’t operate within the law now, so why would they join a register?”
On related proposals to introduce to the private sector the same Decent Homes Standard that exists with social housing landlords, the overwhelming majority of respondents - 83 per cent - were supportive. More than two thirds of those polled believe their properties already meet the new standard.
However, of those that will need to undertake work to bring the property up to standard, 56 per cent would use their savings to fund that work. However, around a third admit they will be putting up the rent in order to improve the property if the minimum standards are ushered in.
Dan Clinton of The Mortgage Works says: “We believe everyone should have a safe, secure and comfortable home, which is why we are committed to improving standards within the private rented sector. The proposals outlined in the government’s white paper should serve to have a positive impact on housing quality and conditions for tenants.
"While landlords appear to be largely in favour of a National Landlord Register and Decent Homes Standard, it is revealing that one in four would consider selling in the event of Section 21 being abolished. This highlights the importance of listening to landlords’ concerns as these policies take shape, particularly when considering the broader set of regulatory changes already affecting them.
“A mutually beneficial private rented sector needs to offer tenants the security they will not be evicted without good reason, yet also provide landlords the confidence they can gain possession of a property quickly and efficiently if something does go wrong, such as anti-social behaviour. As a buy-to-let lender, we are keen to understand how the changes will be implemented, to ensure we fulfil our role of helping to balance the needs of landlords as well as tenants.”
Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions.
If any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals, then the post may be deleted and the individual immediately banned from posting in future.
Please help us by reporting comments you consider to be unduly offensive so we can review and take action if necessary. Thank you.
.jpg)
%20(002).png)
.png)
Join the conversation
Jump to latest comment and add your reply
It's time for a tenants database. Then maybe, just maybe, it'll start to get a little less risky.
I have done my S21 already.
Why do we need a register? As above we really need a register of rogue tenants. We don’t need to put up with these people. My tenant is dreadful in just about every way.
We don’t need Decent Homes either. Can you imagine trying to refurbish during a tenancy??? The increased cost and trying to find someone to want to do it? My agent (through builders quotes) is trying to charge me £2,200 to replace a vinyl floor in a 3 bed semi! They wanted £15k for a flat roof over the kitchen!
Nothing mentioned about the Ombudsman above. Who is he going to side with EVERY TIME? Like the deposit scheme we have at present. It’s a big NO from me.
I think the poll suggests LLs are sleep walking into a nightmare. Why is it only a quarter of landlords saying they will sell? Are the other three quarters on medication or what?
83% were of LL supportive of decent homes Standard so naïve their idea of decent home standards & Council’s are completely different you’ll find that out if you have apply for license. The quality of let property has greatly improved in recent years but not by Regulation. Its thanks to arrival of East European trades people capable and willing to do the work resulting in beautiful Kitchens & bathrooms better in many cases than owner occupier, fit for a king.
Does everyone mean the whole world ? Because that's what we have, with open borders.
It's as though tenants have no choice over properties, and that their is no crime and all tenants are wonderful disadvantaged people at the mercy of horrible landlords.
Mr Clinton, what’s he on about committed and supportive to improving standards, where’s his input living off LL’s backs.
Why is he on about security of Tenure for Tenants is it because he read the WHITE PAPER, they already have security as per Contract, it can’t be called an Eviction when they are out of Contract. That’s what a Contract is for that both sides agreed to at the beginning, not indefinite or otherwise.
Mr D Clinton there’s your good reason but what you want is to breach our Contracts you have no right @ The Mortgage Works to impose this nonsense on your Customers, if you love Tenants so much give them a Mortgage and I hope they will have better dealings with you than I had.
I wonder if the people who conduct these polls check if all the people who complete them actually are landlords.
Edwin, you are right & of course they have all the rights as I had re-affirmed when talking at length to a blank stranger yesterday Curtesy of Train Strike stranded on the Platform, a Tenant of others but didn’t know I was a LL at the time, my goodness did she have it all off about rights and claiming, apparently some disability not visible to me, can work part time and claim & does in Council Office. She said and about time too so we will have our own Ombudsman for the first of October then we’ll show them, are they the right type of people to be influencing Policy.
I have no objection for a national Register of landlords as long as it doesn't cost me anything.
It won't cost LLs - it will get passed on in increased rent. Yet again tenants shot in the foot by people supposedly on their side!
@ Richard Bicknell, - I have no objection to the SAME scrutiny placed on Tenants.
When the Govt create a database of Tenants, I'm happy to join a landlord database.
Govt have a very strange concept of ' Levelling '
- somebody ought to buy them a spirit level. !
Too right it won't cost me, but when I increase rents to cover the costs I will be upfront in explaining why to my tenants
there should be a national Register of tenants also or is the playing field that angled uphill some site tried to do this but the data protection act got in the way don't landlords have some protection at all?
I guess not, as I got fined for not including my HOME address on the required notice of my HMO
I agree with Nick… why so few landlords? I am certainly in the group selling up, the government have no clue, but they will find out the hard way.
Only a quarter ? mmm we'll see.
I'm suspicious.
Micheal
She obviously thinks that the ombudsman will rule in her favour, and that she is in possession of the property and effectively the owner, (withou the obligations).
I still have the scars from the 1970s/80s when like today all landlords were painted as a Rachman, with sitting tenancies able to be handed on to next generation on controlled rent being the order of the day and drafted in overnight, hence the mere mention of outlawing section 21 by this levelling down government was enough to get out and quick. It took the best part of 20 years before previous administrations concluded it was a mistake and I will likely be pushing up daises by then.
I remember that period, too. And what they are planning now seems just as bad.
We are in the worst housing crisis in living memory and this Govt is walking, actually running, straight towards the oncoming disaster.
The policy makers need to stop listening to the tenant organisations who are destroying the PRS and actually look at what is happening!
It is like the story of the Emperor's New Clothes - people in government are not prepared to acknowledge the reaility of the situation, and continue instead to spout the distorted rhetoric of Generation Rent, Labour MPs and Shelter.
No doubt there’ll be a compulsory fee then fines etc
That’s all the public sector are good for , printing bills
They also get paid and collect big fat pensions. They are good at that too.
I think without Section 21 Landlords trying to get the property back from Rent Dodging , House Smashing, Anti-social Tenants. Will be facing a massive uphill struggle , The Tenants will have all the resources of the Council, Government, and Legal Possession at not cost to them whilst costing you a fortune.
With Regards to TMW why have they put their Standard Variable Rate so High. IF they want to support Landlords put the SVR Down to a normal margin not an adverse margin.
Stephen, the big reset, back to the 80s / 90s, we'll just send the heavies in to evict, worked just fine then.
That’s why I have used S21 now. It works. Leave it alone. Any meddling with it lead to what you say above. It will involve court and counter claims and you will never get the property back.
Edwin, sorry for Late reply didn’t get time to look at my phone further today I have to ignore it or get nothing done.
That’s exactly what I think, do you think he’s going to be impartial
that would be a miracle and no point in bringing it in. We have to go by what has been happening already didn’t see at impartiality there, all one sided even if you go to that special place whatever Council puts forward is simply rubber stamped and let that be a lesson to you and other LL’s that we won’t hesitate to take action against you, you know they are all singing from same hymn chart they well rehearse.
They don’t mention they left the LL with no remedy to avoid problem or power to deal with any issues. Everyone pleads guilty that’s clear or the fine doubles, of course you can plead not guilty if you aren’t stupid and would like a day at Crown court
Exactly. There will be no impartiality. It’s all more fines and more court fees against legal aided tenants.
Andrew sorry we can’t do that it will always backfire and strengthen their case, if it comes to that we’re better off out of it. They are not taking on board the good we do, just attack and demean us at every opportunity.
I'm reading varying reports on how many Landlords are exiting the market.....I read one from an Agency trainer that looked convincing, may well have been genuine or accurate. My view is that it all depends on where you are in life.....if in your 30's and there's plenty of time as its always a long term investment, then stick with it and ride the changes that may well change back again when they see the damage that they are causing (as seen in Ireland). This White paper could still be torn up under new Tory leader, we shall see.
If however, you are in your mid 50's like me, it appears the market is peaking, recession looming and possible price correction of values, plus the murmured in crease in CGT to dissuade Landlords from selling (as that the only real weapon that the Government have over us)....then issue your Section 21's whilst you can, sell up, pay the CGT at current rent and sail of with a cocktail in hand into the sunset, which is what I am doing when I meet my agent next week......I will however, continue to watch in interest.
Theoretically there is a possibility the PRS could disappear altogether, and would be easily gobbled up by end users if the opportunity arose. There are signficantly more people in the UK who don't own a property at all, but have aspirations and many the capability to buy one, than the 4.4m rented out currently. We had 6m mainly young single europeans register for the ESS recently much to HMGs surprise who thought it was half that number living here, let alone all the existing population in rented, sharing, in social housing, in halls of residence and other supported sectors, or living with Mum & Dad, and that population is increasing far quicker than we are building.
What a change in dynamic facing society, when your choices as a young person would be buy a property or face at least half your lifetime living at home until you could afford to, as rented property was no longer an option. Gimes me the shivers to think of my kids living at home for another 20 years, but what would that do to the marriage and birth rates for example, or their ability to get a job anywhere other than near their home town, opportunities lost, to homelessness levels where parents and their children often dont get on? The list of potential ramifications is a long one. In the 70s & 80s the last time this dynamic existed, it didnt matter, it would this time.
I think if the plans in the White Paper are implemented the private rental sector will be half the size it is now or even smaller. It may virtually disappear in London where the return is not very high. A small minority of landlords may let to local authorities if it means that they can enter into a fixed term contract with them, but with a Labour victory being a distinct possibility after the next election even that form of letting may be risky with the tenants possibly being given the right to stay on. Retrospective legislation is now a possibility - we have seen that in the White Paper. Labour's aim is a redistribution of wealth not the maintenance of a good quality private rental sector.
Please login to comment