What the new Government has in store for Landlords in England
Within three weeks of taking office, the new government addressed issues of housing that have long been a source of speculation, conjecture and apprehension. With new ministerial appointments, policy announcements and mention in The King's Speech, Head of Property Lettings and Revenue at Dutton Gregory Solicitors, Gina Peters, gives her opinion on the latest developments.
Within a week of winning the UK's General Election earlier this month, the new Labour government announced Matthew Pennycook as Minister of State in the newly named Department for Housing Communities & Local Government, to work alongside Angela Rayner as Housing Secretary and Deputy Leader.
'Pennycook is a very sensible appointment,' says Gina. 'With a background in the charitable sector before coming an MP, he has been very involved in the former government's 'Renters Reform Bill', publicly scrutinizing the detail and tabling many amendments, so this is a man who can hit the ground running with knowledge and experience.'
The following week, the issue of rented property was mentioned in King Charles' speech to the Houses of Parliament: 'Legislation will be introduced to give greater rights and protections to people renting their homes, including ending no fault evictions and reforming grounds for possession.'
Almost immediately came the announcement of the new 'Renters Rights Bill' which will replace the last Government's 'Renters Reform Bill' and overhaul the private rented sector for approximately 4.5 million households in England.
Section 21 notices for 'no fault evictions' will be abolished, tenants will have the right to challenge rent increases and request pets, and landlords will be ordered to meet a 'Decent Homes Standard' which will ensure homes are safe, secure and hazard free.
It will also be illegal for landlords to discriminate against those who have children or are claiming benefits, 'Awaab's law' will be applied to the private sector to force landlords to fix damp and mould issues within strict time limits, and a proposed digital database will bring together key information for tenants to use before entering a new tenancy, and landlords to understand their obligations and demonstrate compliance.
'The proposed legislation is not dramatically different in its early mention and, whilst designed to protect the tenant, there will be changes to assist the landlord,’ explains Gina. ‘These include expanded possession grounds for landlords to reclaim properties when they need to, as without section 21 this is the only route to possession that landlords will have.’
‘However, these new grounds are critical in regaining the confidence of landlords in the private rented sector. I am not expecting any changes to the grounds to be as ‘generous’ as they may have appeared in the original Renters’ Reform Bill, and this could be problematic.’
After the many months of delay, diluting of proposed legislation and lack of any consultation and engagement from the last government, Gina cannot yet let go of the scepticism built up from previous experience.
'I have been impressed by the speed at which the new government has addressed the issues that that have been the source of nervous speculation and anxiety in the lettings market for many months, but we have heard grand declarations of intent before.'
'Whilst the intention and objectives are clear from a lawyer’s perspective this changes nothing until the Courts resources are invested in. Whilst there has been mention of a review of the justice system for possession cases before the abolition of section 21, this leaves the new government in the same predicament as the former. A report from the Lord Chancellor was proposed, but without deadline or detail.’
‘We need clarity and a detailed timetable of action to help us reassure landlords and keep them in the private rented sector. Only that will end the uncertainty that has seen landlords flee the marketplace and reduce the number of homes available to people in need, with consequential rent increases.'
'Though there have been a lot of them, and they have new voices in a time of excitement and anticipation for change, these are still just words, and no amount of productivity, progress or growth can be built on rhetoric alone. This new government has had plenty of time to work out the detail, and that is what we need to see, fast.'
