Shamplina Speaks - What Does Court Reform Actually Look Like?

Totally agree with your comments, but……. I fear Labour will press the ‘ Button 🔴’ and do what Scotland did, emergency legislation to ban all evictions and rent rises. We won’t have time to sell 😰😰

Student tenancies are usually somewhere between 48 and 51 weeks. Erasmus or PGCE students often want just one semester but have always found it incredibly difficult to find a landlord willing to risk such a short let in a student house. What are we going to do with the house for the other 7 to 9 months? In order to retain student houses in the student market and therefore available to future students the proposal to ensure tenancies end between June and September is very practical. Universities need to do their bit and ensure all courses end in that window. Some Masters courses currently don't.

If your visiting professionals have always wanted fixed term tenancies to correspond with their contracted time in the UK what changes? Why is it going to make any practical difference to your letting pattern? Are any of them likely to decide to stay longer?

What in practical terms is the difference in the indefinite periodic tenancy you are so fearful of and the Statutory Periodic Tenancy millions of landlords have used for decades? We all start with a 6 or 12 months standard AST and then just let it roll onto a SPT. When the tenant wants to leave they give notice. We can increase rent annually. We can evict in exactly the same way as a landlord can who uses fixed tenancies (slowly and with all the same complications). While Section 21 exists we're actually less restricted regarding the eviction timetable as we only have to wait until 2 months before the end of the fixed term once. After it rolls onto the SPT we can start a Section 21 anytime.
Personally I like tenants to settle long-term and create proper homes. It may be my house but I'm happy for it to be their home for as long as they abide by the tenancy agreement.

This is not about me, Jo, and my letting model at the moment.

The historical data show that people do not let property when tenants gain security of tenure.

I too have enjoyed buying run down properties turning them around and renting them to good tenants many of whom have become friends, however there is always the risk of getting a rogue tenant, with sec 21 I know I can get rid of them, without it the risk is too high

That is so obviously right, David.

We can see that, but the politicians cannot. I don't expect Polly Bleat and her useful idiot friends in Nationwide, Generation Rent and Acorn to even consider the consequences since their opposition to Section 21 is their first commandment.

This is my real fear and expectation, they have already said as much, without any court reforms 🫣🫣

I suspect that as a general election approaches, landlords who can, will sell. Those who cannot will be afraid, very afraid.

I thought the assumption in Paul Shamplina's piece was that the general election is not going to happen until the end of 2024, but how can we be sure of that?

The Tories could opt to hold one in May 2024 which is not very far off at all.

@ Ellie. there is also the threat that another 52 MPs belonging to the faux-conservative party will write letters to the 1922 committee chairman. If a new leader is elected and there is a BIG bounce in the polls, they may well decide to have an election to validate their mandate

That is an excellent point A.L.

There is a possibility of something like that happening if some MPs come to the conclusion that Rishi Sunak is not going to enable them to keep their seats after a general election.

Ellie, if they believe that Sunak will lead then to victory, then that would explain why they do not belive landlords are selling up. They are delusional.

You know more than I do about this A.L.

I thought they knew that landlords were selling and that is why they put the abolition of Section 21 on hold - to try to avert a terrible housing crisis while they are still in power.

A huge number of Section 21 notices will probably be served once a general election is announced. Difficult for Labour to do anything about them if they take power because most landlords will intend to sell. Goodness knows what Labour will do under those circumstances.

The Tories really need to sort out legislation now which will be acceptable to landlords and Labour, so that some stability is created for everyone. The Renters Reform Bill is not that legislation.

"I thought they knew that landlords were selling and that is why they put the abolition of Section 21 on hold - to try to avert a terrible housing crisis while they are still in power. "

Ellie, you seem to have more faith in politicians than I do and credit them with more commonsense. I do wish they would wake up and smell the coffee, but I fear they are all tea drinkers.

You are right AL - I am probably wrong!

Couldn't agree more! They need to sort out the situation now.

I just do not see it happen. Many Landlords will have changed from private to Ltd, at huge expense. Inland Revenue are now looking into some creative tax planning and could be costing these Landlord's a lot more money.
It is almost unbelievable how the renting market could be handled so badly, yet here we are.
There is no magic fix because nobody in power is looking to do this. However, eventually the penny will drop. Someone will say it's somebody else's fault and they will then re-invent the wheel. When though is the question, but not soon enough.

The problem is that there are different agendas at work now in the renters reform process.

One is a left-wing belief in social ownership of property and another is a belief that wealth/property should be transferred in order to create equality of property ownership. I was reading on the Guardian today (Five things that could help fix Britain's private rented sector) that Civitas (a think tank) has suggested that after three years renters should gain a legal right to buy their home at a discount of up to 35%, capped in the most expensive markets in the way social housing right-to-buy discounts are capped. They say that the cost should be borne by the landlord out of the unearned capital gain they have made as property prices have risen.

Conservatives, Labour, Lib Dems and Green party all want to scrap Section 21. Don't know about the Reform Party - can't find their policy on security of tenure.

LibDems and Greens want compulsory licensing.

Repeal section 24 too!

Andy, I read your comment as if it was addressed to Gove and saw, "Repeal section 24, tool" Must get the glasses cleaned!

I suspect that some landlords will put their properties up for auction before the next general election.

I think Angela Rayner said the wrong thing about abolishing Section 21 as soon as she takes office.

She would have helped existing tenants much more if she had said instead that Labour will not apply legislative changes retrospectively. Landlords would not have told existing tenants to leave in those circumstances; instead they would have been much more likely to have hung onto them.

You've done so well Catherine to take steps to try to find out.

They have published their policies on other matters e.g. tax, so one would think that they should have a policy on the private rental sector.

They are described as a "populist" party i.e. appealing to ordinary people who feel their concerns are disregarded - how does that translate into a view on the private rental sector?

I have two rental properties left. One I own outright, the other shared with friends and with a mortgage. We have already decided that the mortgaged property will be sold when the term expires in 2024 or earlier if the tenant vacates.

I find the continual landlord bashing by Polly Bleat and her sheep in GR, Acorn etc is like a water dripping on a rock. At first it makes no difference, but eventually it wears down the rock.

I wonder how many landlords have similarly been worn down and are making plans to sell? Readng opinions on here, I suspect the answer is many more than the polls etc state.

Mr Annoyed I like this analogy very much, as I also liked the tool comment!

Is it possible for landlordtoday to run a poll? Probably be more accurate than an NRLA poll.