Planned amendments to Renters’ Reform Bill risks ‘driving up rents’

house keys for home ownershipThe government’s proposals to shake up the Renters’ Reform Bill risks driving up rents and reducing tenants’ rights.

That is the view of the National Association of Property Buyers (NAPB) who fear planned amendments by ministers will fail to solve the housing crisis.

Their warning comes after the government published plans for new legislation which seek to end Section 21 evictions. They also aim to remove blanket bans on benefit claimants or families with children and force landlords to consider requests to allow pets.

Measures will also include doubling notice periods for rent increases and giving tenants stronger powers to challenge them if they are unjustified.

Jonathan Rolande, spokesman for the NAPB, said: “Much has been made of the ban on the fact ‘no fault evictions’ somehow gives complete security to tenants who otherwise were at the mercy of a bad landlord from the day they moved in. This is not the case.

“A Section 21 is, or was, a reminder to a tenant that the landlord wants the property back for whatever reason, but not because the tenant is at fault in any way.

“With these consigned to history landlords will have to rely upon Section 8’s, the court route or demonstrate they need to sell the property hence needing it empty.

“My worry is, conversely, landlords will feel more insecure than they did yesterday. If landlords sell up by the thousands, as is already happening, there can only be two outcomes. We will see fewer properties to rent, driving up rents. Additionally, the smaller ‘mum and dad’ landlords will sell up and corporations will take over. After that, more than ever, the property and its occupiers will be a commodity, run with ruthless efficiency.”

Meanwhile, Rolande says last week’s interest rate rise could be a good thing in the long-term for the property market

He continued: “Perhaps in the long-run this rise is for the best, the property market has been increasingly looking out of control with many abandoning all hope of ever being able to afford a property. Perhaps pain now might just avoid pain for the long-term.”

 

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3 Comments

  1. AcornsRNuts

    To Jonathan Rolande, spokesman for the NAPB, in an effort to educate you, there is no such thing as “no fault evictions”.  The only way a tenant is evicted is by High Court Bailiffs and that after they have refused to leave a property at the end of the tenancy, having been given due notice and the landlord having gone through the County and High Courts.

    I do realise that the word eviction is a very emotive word and for that reason alone, it should be held back for those occasions when it means what it says.  NOT when a landlord wants HIS property back.

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    1. Jonathan Rolande

      Thank you. I understand your point, it is why I (like you) used inverted commas when describing the popular but incorrect term that has been in use since at least 2015 when describing this issue.

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  2. A W

    Ok, is the Government dumb (that was rhetorical, of course they are)?

    Their proposed changes to section 21 remove the right to a fixed term tenancy, meaning that after 4 months the landlord can serve a 2 month notice. Where is the security? Conversely the paper reads that a tenant can serve 2 months notice, pretty much from the day that they move in. Again… where is the security (but who cares about the landlord)? Where in the above is there ANY security for either party? A landlord can state that they wish to sell or indeed that a family member moves in… how is that policed?

    The paper states it wants to make it easier for people to have pets, but then goes on to say due to the cost of living you have to serve a section 13 for rent increases. If cost of living is an issue… don’t have a pet?

    There is no “risk” of driving up rents, it is guaranteed to happen. Welcome to basic economics… less supply & higher demand = higher prices.

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