7th
May 2024
Labour wanted its proposed amendment to the Renters Reform Bill to be accepted which could have made the already drastically changed regulations to the tenant evictions process far longer.
The party’s proposal is to make it illegal for landlords to sell or move back into their properties for two years from the start of a tenancy.
Labour’s shadow housing secretary, Matthew Pennycook, is responsible for pushing through the proposal to be included in the new version of the Renters Reform Bill. It is supposedly to safeguard private renters from having to move home shortly after the beginning of a tenancy, and will stop those landlords from being able to reoccupy their own property or sell it within a two year timeframe.
Richard Merrick of PIMS, says: “It is very likely that if Labour gets into Downing Street this will be introduced into the Renters Reform Act along with rent controls.
“It is more than probable that a good percentage of smaller landlords will just sell up fearing that Labour will go ahead with abolishing section 21 whether or not the court’s system has been upgraded. However the two year timescale for landlords being unable to sell or being allowed to move back into their properties will cause many to ditch the PRS.
“This will have little impact on the larger BTL investors which are now steadily taking over with PRS lenders competing against their landlord clients, such as Lloyds residential landlord arm Citra Living which has just added another 150 properties from Barratts in Gloucester. The banking group has around 2,000 rental properties and has a target of acquiring 10,000 private rental homes by the end of 2025.”
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