28th
Mar 2024
The scrapping of Section 21 notices and ‘outlawing’ fixed-term tenancies are the biggest issues concerning landlords according to an association’s report.
The association’s recent survey report says that 72 per cent of landlords are very concerned about the scrapping of Section 21 notices and 69 per cent were extremely nervous about the ending of fixed term tenancies.
The Renters Reform Bill will abolish all fixed term tenancies which includes assured and assured shorthold tenancies to be superseded by periodic tenancies without any end date.
Nearly a fifth - 18 per cent - of landlords did say they fully understood the Bill with just 3 per cent that took part in the survey saying they had actually read the government’s guidance for the Bill.
Over half – 52 per cent – of landlord respondents stated they had found the Bill’s guidance was not sufficient when recommending landlords that they should use lettings agents to take over the responsibility of having to deal with future legislative changes.
A spokesperson for the association, says: “We have long argued that a fixed term tenancy allows security of tenure for the tenant and a guarantee of rent payments for the landlord. The Renters Reform Bill will only be workable in practice if it addresses the on the ground challenges, we know affect landlords.
“Furthermore, it is imperative that landlords are aware of the upcoming legislation and are given the adequate guidance and support to deliver a high level of service for tenants. Propertymark agents have a key role to play in the implementation of the legislation.”
In a recent edition of The Spectator magazine an article said that Michael Gove has made a bad decision in ending Section 21 which will only come back to haunt him.
Ross Clark a renowned writer and property expert says in the magazine: “This would essentially return tenancy law pretty well back to where it was in the 1980s, when many people with spare properties were loath to let them out for fear they would be unable to take back possession when they needed to. While the rental market has always had its Rachmans, happy to turn out a family of house and home on a whim, there are very genuine reasons why people might want a property back after, say, 12 months.”
Clark stated that with Gove attempting to introduce new reforms heavily skewed towards tenants and hopeful home owners over landlords, has already backfired.
Clark’s piece in The Spectator, says: “Gove has decided to side with frustrated would-be homeowners. But there is another group with whom you might expect the government to have a little more sympathy - private pensioners.
“If, unlike Gove, you do not face the prospect of a featherbedded retirement courtesy of a gold-plated pension underwritten by the taxpayer, you are forced to make other provisions. The miserable performance of the UK stock market has pushed many people of quite modest means into buy-to-let.
“These make up a large proportion of the landlords on whom Gove has declared war. He cannot expect a lot of thanks for this at the ballot box.”
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