“Prudence Ivey: What are the changes proposed in the Renters’ Rights Bill?
David Fell: The Renters’ Rights Bill currently going through Parliament will mean a ban on Section 21 terminations, a ban on bidding wars, and an end to fixed-term tenancies.
Rent rises will only be permitted once a year and they must be in line with the local market rent. All properties will need to meet a minimum standard of quality, set out by the Decent Homes Standard, and renters will be able to request a pet in their home.
PI: How is this likely to reshape the rental market?
David Smith: There’s going to be a far more open structure going forward where tenants have certainty that they can stay in a property for as long as they want, subject to specific rights to recover the property. That’s quite a big change philosophically for landlords who are used to being able to recover their properties without providing a reason once the fixed term has ended.
But I think the far bigger changes are around rents and the way they are advertised, with new limitations on overbidding and the advertised price being the maximum price.
Also likely to significantly impact the whole private rented sector are new rules requiring landlords to join a national property database and an approved redress scheme, the introduction of Awaab’s Law [mandating all landlords to address health hazards, including damp and mould, within specific time frames] and the implementation of the Decent Homes Standard.”
coffeewalnut08 on
I’m broadly supportive of this Bill, as it provides for stronger stability and better living conditions for tenants. Private renting in England can be utterly miserable, and this legislation seeks to change that.
My main concern is it risks causing shortages for accommodation in high-demand areas like London, Brighton, Oxford etc. (as fewer tenants will feel pressured to move out).
So Labour will have to combine this Bill with more and accelerated housing development projects. The upcoming English Devolution bill + changes to planning & infrastructure could help with this, but we’ll see.
OkMap3209 on
It should have come bundled with provisions for landlords. Tax incentives for meeting the decent homes standard and making an S8 quicker and easier. Currently many S21s could have easily been S8s, but S8s are such a ballache to get through that S21s were used instead. Now that’s gone S8s, require much needed reform.
Legitimate-Leg-4720 on
I can’t help but wonder, if someone doesn’t have a guarantor or prior references and they have no income (perhaps a student), how else can they convince a landlord to take them other than to offer rent up front?
It seems to me landlords will never consider such candidates now, they’ll want someone with a good income and references to boot.
Commercial-Silver472 on
If bidding for a property isn’t allowed how will a landlord pick between 20 applications?
Minimum_Definition75 on
I wouldn’t want to be a tenant when this, the EPC and NI kick in. The slum landlords need dealing with, but as is typical in this country, the innocent as punished as well.
Market rate will mean nothing when some start adding 15-20% for the NI in addition to inflation, the rest will follow. And that’s without adding in the £1000 charge some councils are making for selective licensing. Those who can afford it will have to pay or buy. The rest will be the councils problem.
A lot of the private sector houses can’t meet EPC C (social housing won’t need to) without major expenditure. I think the government were talking about exempting after £15K (how much will a loan this size put on rents)
They are extending the arrears period, so tenants can get further into debt before court proceedings can start. Then there are the court and bailiffs fees which can be claimed from tenants. Often landlords wrote these off as unrecoverable, now the general feeling is go for CCJs
The courts and bailiffs are backlogged so it takes up to a year to evict, even on an “at fault” eviction.
Classifying it as unearned income is a joke. We spend hours cleaning, maintaining properties, dealing with tenant issues, sorting tradespeople and doing paperwork.
Decent landlords who maintain their properties are already making less than they would with other investments (which they wouldn’t pay NI on) and probably carry about the same risk. Add in capital gains, stamp duty penalties and the proposed property tax, light the touch paper and stand back.
I forgot the likes of Serco trying to pay inflated rates to get properties for “whatever”. And the large corporates buying new builds, bet they won’t be cheap.
We already need 3x income a guarantor and references for insurance, so what happens to those without them when we tighten up even more
In what world would a government choose to destabilise the rental market when it’s already in crisis.
Build the social housing first ffs.
Rant over lol
xmBQWugdxjaA on
This will be a disaster. The only right that matters is the right to choose and move elsewhere – and that means building tens of thousands of homes.
7 commenti
Key excerpts:
“Prudence Ivey: What are the changes proposed in the Renters’ Rights Bill?
David Fell: The Renters’ Rights Bill currently going through Parliament will mean a ban on Section 21 terminations, a ban on bidding wars, and an end to fixed-term tenancies.
Rent rises will only be permitted once a year and they must be in line with the local market rent. All properties will need to meet a minimum standard of quality, set out by the Decent Homes Standard, and renters will be able to request a pet in their home.
PI: How is this likely to reshape the rental market?
David Smith: There’s going to be a far more open structure going forward where tenants have certainty that they can stay in a property for as long as they want, subject to specific rights to recover the property. That’s quite a big change philosophically for landlords who are used to being able to recover their properties without providing a reason once the fixed term has ended.
But I think the far bigger changes are around rents and the way they are advertised, with new limitations on overbidding and the advertised price being the maximum price.
Also likely to significantly impact the whole private rented sector are new rules requiring landlords to join a national property database and an approved redress scheme, the introduction of Awaab’s Law [mandating all landlords to address health hazards, including damp and mould, within specific time frames] and the implementation of the Decent Homes Standard.”
I’m broadly supportive of this Bill, as it provides for stronger stability and better living conditions for tenants. Private renting in England can be utterly miserable, and this legislation seeks to change that.
My main concern is it risks causing shortages for accommodation in high-demand areas like London, Brighton, Oxford etc. (as fewer tenants will feel pressured to move out).
So Labour will have to combine this Bill with more and accelerated housing development projects. The upcoming English Devolution bill + changes to planning & infrastructure could help with this, but we’ll see.
It should have come bundled with provisions for landlords. Tax incentives for meeting the decent homes standard and making an S8 quicker and easier. Currently many S21s could have easily been S8s, but S8s are such a ballache to get through that S21s were used instead. Now that’s gone S8s, require much needed reform.
I can’t help but wonder, if someone doesn’t have a guarantor or prior references and they have no income (perhaps a student), how else can they convince a landlord to take them other than to offer rent up front?
It seems to me landlords will never consider such candidates now, they’ll want someone with a good income and references to boot.
If bidding for a property isn’t allowed how will a landlord pick between 20 applications?
I wouldn’t want to be a tenant when this, the EPC and NI kick in. The slum landlords need dealing with, but as is typical in this country, the innocent as punished as well.
Market rate will mean nothing when some start adding 15-20% for the NI in addition to inflation, the rest will follow. And that’s without adding in the £1000 charge some councils are making for selective licensing. Those who can afford it will have to pay or buy. The rest will be the councils problem.
A lot of the private sector houses can’t meet EPC C (social housing won’t need to) without major expenditure. I think the government were talking about exempting after £15K (how much will a loan this size put on rents)
They are extending the arrears period, so tenants can get further into debt before court proceedings can start. Then there are the court and bailiffs fees which can be claimed from tenants. Often landlords wrote these off as unrecoverable, now the general feeling is go for CCJs
The courts and bailiffs are backlogged so it takes up to a year to evict, even on an “at fault” eviction.
Classifying it as unearned income is a joke. We spend hours cleaning, maintaining properties, dealing with tenant issues, sorting tradespeople and doing paperwork.
Decent landlords who maintain their properties are already making less than they would with other investments (which they wouldn’t pay NI on) and probably carry about the same risk. Add in capital gains, stamp duty penalties and the proposed property tax, light the touch paper and stand back.
I forgot the likes of Serco trying to pay inflated rates to get properties for “whatever”. And the large corporates buying new builds, bet they won’t be cheap.
We already need 3x income a guarantor and references for insurance, so what happens to those without them when we tighten up even more
In what world would a government choose to destabilise the rental market when it’s already in crisis.
Build the social housing first ffs.
Rant over lol
This will be a disaster. The only right that matters is the right to choose and move elsewhere – and that means building tens of thousands of homes.