The government has finally unveiled its plans for the new Renters
Reform Bill during the Queen’s Speech.
The new laws will impact landlords and tenants across the UK to create, the
government says, a fair and effective market.
The move will also, it has been confirmed, lead to the abolition of section
21 ‘no-fault’ eviction notices.
That’s when a landlord has no obligation to give a tenant a reason for
ending their tenancy.
Compel landlords to give a valid reason for evicting a tenant
Now, the Renters Reform Bill will compel landlords to give a valid reason
for evicting a tenant and an ombudsman will be introduced so that any
dispute between tenants and private landlords can be resolved without
having to go to court.
The bill will also introduce stronger possession grounds should there be
repeated incidences of rent arrears and when there is antisocial behaviour,
the notice period will be reduced.
Michael Gove, the Levelling Up and Housing Secretary, said: “Too many
renters are living in unsafe, damp and cold homes and are powerless to put
it right under the threat of eviction.”
He said that new laws will bring an end to the ‘injustice’ and boost the
rights and living conditions for millions of tenants.
Strengthen a landlord’s rights of possession
The government says it will strengthen a landlord’s rights of possession so
that ‘landlords can regain their property efficiently when needed’.
The government has also revealed that a property portal will be established
so that landlords will better understand their responsibilities to tenants.
However, the new landlords’ portal will also give a performance indication
for potential tenants and renters will be able to hold their landlord to
account.
A briefing document for the new bill highlights that the abolition of
section 21 notices will ‘empower tenants’ to challenge unfair rent
increases and poor practice ‘without fear of retaliatory eviction’.
Lifetime deposits and a national landlords’ register in England
The White Paper will be unveiled next month, and it appears that the
proposals for lifetime deposits and a national landlords’ register in
England have been dropped. They were part of the original proposals for a
Renters Reform Bill.
The White Paper will also spell out that the Decent Homes Standard will now
be legally binding in the private rented sector for the first time.
The chief executive of the lettings platform, Goodlord, Tom Mundy, said
that the Renters Reform Bill is “definitely back on the table” after so
many delays.
He added: “Now it’s back on the agenda, the government must provide
landlords, letting agents and tenants the clarity needed for moving forward
with confidence.”
Mr Mundy said that uncertainty will do the market no good – particularly
when regulations are ever-changing and there are new requirements being
introduced.
‘Significant impact on letting agents and their landlords’
Propertymark’s head of policy and campaigns, Timothy Douglas, said: “The
measures proposed will have significant impact on letting agents and their
landlords and tenants in England.
“What we need is balance throughout the court and possession processes to
ensure that landlords and agents have access to regain possession when
justified.”
He added: “The introduction of legally binding standards across the rented
sector is welcome, in principle.”
Mr Douglas says that legislators need to be aware of the variety of
property types that exist currently in the private rented sector before
deciding on what those legally binding standards are.
‘What the Renters Reform Bill will look like’
Simon Thompson, the managing director of Accommodation for Students, said:
“There are no real surprises in the government’s announcement of what the
Renters Reform Bill will look like so we will have to wait until the
details are published.
“And when they are, all landlords and agents will be taking a keen interest
in how and when the removal of section 21 will take place and what the new
system for possessions will look like.”
The top five cities for student landlords to invest in
Meanwhile, the top five cities for delivering the best chance of profits
for student landlords in the UK have been revealed.
Research from CIA Landlords looked at the average student rent in each
university city, the cost of property and student demand.
They found that the city offering the best opportunity for potential
profits as a student landlord is London with an average monthly rent of
£2,565.
Cost of investment will put off potential student landlords
However, the insurance platform says that the cost of investment will put
off potential student landlord investors who instead should look at Belfast
which offers landlords an average rent of £832 per month.
Durham is in third place with a monthly rent of £782, and in the fourth
spot is Edinburgh where students are paying, on average, £1,285.
Manchester is in fifth place with an average rent of £1,160.
Other cities offering decent returns for student landlords include Leeds,
Glasgow, Birmingham, and Coventry, as well as Oxford.
