The Intermediary – February 2025 - Flipbook - Page 29
BUY-TO-LET
Opinion
Renters’ Rights
Bill: Olive branch
or sledgehammer?
I
f landlords had hoped that the
new Government’s Renters’
Rights Bill would forget about
the previous Renters (Reform)
Bill’s proposal to abolish
Section 21 ‘no fault evictions’,
they were disappointed last year.
The threat hasn’t gone away – the
new Bill, which has passed through
the Commons and is now with the
Lords, is expected to become law this
summer, and also includes abolition.
But the new Bill’s possession
grounds offer a potential olive
branch to landlords, hopefully
counterbalancing any gloomy effects
from its other measures.
In our survey last spring, landlords
told us that the abolition of the nofault eviction was a disappointment.
Landlords said they needed to be able
to take back control of their property.
Furthermore, they thought that
abolition was likely to see increased
demand as courts heard possession
claims and landlords looked to use
Section 8 powers instead.
In this they shared common ground
with many Conservative MPs in the
last Government. Following pressure
by Tory backbenchers, an amendment
to the Bill would have made abolition
contingent on improvements to the
court process. Instead, under the new
Bill, abolition will happen as soon as it
comes into force.
But at least the new version provides
some certainty, compared to the many
months of doubt, debate and delay
before the General Election.
This certainty includes firmer
details on expanded possession
grounds. The Bill proposes mandatory
grounds such as occupation by
landlord or family, the sale of a
residential property, when a superior
lease ends, possession by a superior
landlord, and possession to allow
compliance with enforcement action.
Our latest survey shows that landlords
have found some consolation in this.
We asked landlords whether the
new expanded possession grounds
would be helpful. Nearly 40% said the
possession grounds would be helpful,
while 28% said they wouldn’t be.
But one landlord told us that they
thought that the Section 8 process
would still be too protracted.
They said: “I don’t believe in the
abolition of Section 21 as it will
put a lot of financial pressure on
landlords when a tenant does not pay
rent and [they have] to go down the
lengthy process of Section 8 to get a
property back.”
The survey showed that nearly all
of the landlords knew about the new
Bill, with only 9% saying they were
not aware of it.
Further measures
In other measures in the Bill,
landlords can also take back student
housing from student tenants, a
measure based on an amendment to
the old Bill.
Landlords can increase rents once
a year to the market rate. To do this,
they will need to serve a ‘Section 13’
notice, seing out the new rent and
giving at least two months’ notice of it
taking effect.
But tenants will be able to challenge
proposed rents at the First-tier
Tribunal, the workings of which the
Bill pledges to reform. Currently,
tenants face the risk that the Tribunal
may increase rent beyond what the
landlord initially proposed. This will
no longer be the case, so tenants never
pay more than what the landlord
asked for.
Backdating rent increases will
also end. Rent increases by any other
means – such as rent review clauses –
ROB STANTON
is sales and distribution
director at Landbay
No decent landlord
will object to treating
tenants fairly, and some of
the proposed reform is to
be welcomed”
will not be permied. In addition, the
new Bill introduces laws to end rental
bidding wars.
The Decent Homes Standard,
currently only applicable for social
housing, will be applied to the private
rental sector. While the old Bill also
proposed this, this goes one step
further by extending Awaab’s Law
to the private sector. This law sets
clear legal expectations about the
timeframes within which landlords
must take action to make homes safe
where they contain serious hazards.
No decent landlord will object to
treating tenants fairly, and some
of the proposed reform is to be
welcomed. But the Bill may still be a
sledgehammer to crack a nut.
As one landlord told us: “Landlords
should respond in good time to
genuine issues, but they should,
however, be allowed to deal with
problem tenants swily and firmly.”
Good landlords should be seen as
part of the solution to the housing
crisis. The buy-to-let sector must be
allowed to continue to meet rising
demand for rental properties.
The Renters’ Rights Bill is now
making its way through the House of
Lords. However it comes out in the
wash, we will continue to work with
brokers to support landlords. ●
February 2025 | The Intermediary
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