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News Article

"In May, you MUST give your Tenants the Renters Rights Information Sheet or

YOU RISK  - £7,000 FINE  PER TENANT PER PROPERTY."READ MORE

1 In 4 Landlords Will Sell Up And Wave Goodbye To PRS If Section 21 Scrapped

31st Aug 2022

The government should be made aware of the clearest warning yet that significant numbers of private rented sector landlords will sell up and wave goodbye to tenants, if the radical reforms ‘promised’ in the Renter Reform White Paper are made law.

Image credit: Pexels

A specialist buy-to-let mortgage lender’s poll of more than 700 landlords finds that less than a quarter-22 per cent- are in favour of government plan/intention to scrap S21 eviction powers.

If the government steamrollers ahead around 56 per cent of landlords will be carrying out far more stringent checks when accepting new tenants, and 62 per cent of landlords with 20 or more properties will be doing the same.

25 per cent of landlords stated they will sell up and quit the sector or put some of their properties on the market if Section 21 is abolished, this rises to 32 per cent for of those who have 20 or more properties.

The proposal for a National Landlord Register has the backing of 62 per cent of respondents and 32 per cent against as some landlords believe it will make no difference whatsoever to ‘rogues’.

Answers from landlords when asked why they felt the register would have no effect on rogue landlords included “Rogue landlords have no concern about the law” and “People who are desperate for somewhere to live will rent from unregistered landlords” and “Rogue landlords don’t operate within the law now, so why would they join a register?”

Regarding the proposal to introduce the same Decent Homes Standard for social housing landlords into the PRS, a resounding 83 per cent fully backed the idea as many believed their properties already met the standards.

A spokesperson for the mortgage lender says: “We believe everyone should have a safe, secure and comfortable home, which is why we are committed to improving standards within the private rented sector. The proposals outlined in the government’s white paper should serve to have a positive impact on housing quality and conditions for tenants.

"While landlords appear to be largely in favour of a National Landlord Register and Decent Homes Standard, it is revealing that one in four would consider selling in the event of Section 21 being abolished. This highlights the importance of listening to landlords’ concerns as these policies take shape, particularly when considering the broader set of regulatory changes already affecting them.

“A mutually beneficial private rented sector needs to offer tenants the security they will not be evicted without good reason, yet also provide landlords the confidence they can gain possession of a property quickly and efficiently if something does go wrong, such as anti-social behaviour. As a buy-to-let lender, we are keen to understand how the changes will be implemented, to ensure we fulfil our role of helping to balance the needs of landlords as well as tenants.”

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"In May, you MUST give your Tenants the Renters Rights Information Sheet or

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Fit for Habitation|March 2019 The ACT is intended to define minimum standards a rental property MUST be and makes a clearer pathway way for Tenants to be compensated|https://www.pims.co.uk/fit_for_habitation_act_march_2019/ Guarantor|The person who provides a guarantee and promises to make payment good should the person responsible for the agreement fail|http://www.pims.co.uk/guarantors/ MEES|The Minimum Energy Efficiency Standard (MEES) Landlords are charged with the requirement to bring their rental property to a minimum EPC rating of E. Property with F and G rating will effectively be banned from the rental market April 2018 |http://www.pims.co.uk/epc/ Section 11|Section 11 of the Landlord and Tenant Act 1985 places an obligation on the landlord to maintain the structure and exterior of the property, including installations for the supply of water, gas and electricity, heating systems, drainage and sanitary appliances|http://www.pims.co.uk/landlord-section-11-repairs/ serving date|This date is the date deemed received at the property - as an example if posted allow for posting days|/serving-notice-on-a-tenant-delivery-days/ Tenancy Application|The objective of vetting is to empower yourself so you can make an informed decision as to the calibre of the prospective person. Making your decision on facts and figures is invaluable and this is why you should always take references. The application form also provides you with permission to perform credits. This form details all the information you should ever require deal with most eventualities including absconding tenants|http://www.pims.co.uk/doc/57/ Tenant Fees|From June 2019 where renting properties in England gone are the days of charging for admin, letting fees, vetting, references, inventory, check in, check out, cleaning, pet insurance or ANY other fee that is not explicitly permitted within the legislation. |https://www.pims.co.uk/ban_letting_fees_act_2019/