Copy article

Renters' Reform Bill

ended 17. May 2023

A new law will be tabled in Parliament today where tenants will no longer face the threat of 'no fault' evictions. Under the Renters' Reform Bill, it will no longer be possible to evict tenants under Section 21 of the Housing Act, which gave landlords the power to remove them without justification. Landlords will only be able to increase rents once a year under the new legislation and will have to give tenants two months' notice for any increases. The measures have raised concerns that a significant percentage of landlords will pull out of the rental market, reducing supply and sending rents even higher. What are your thoughts on this? Is it a welcome and much-needed development or could it deepen the housing crisis? Any thoughts, jot them down. We'll be sending this news alert to the local, trade and national media at 10am.

7 responses from the Newspage community

Copy all

Star Quote
Copy

Sophie Pollard
Director at MyHaus Brighton
There is never going to be a one-size-fits-all solution that pleases everyone but there are huge parts of the Renters' Reform Bill that are long overdue. It's really important to improve the standards of rental properties and protect tenants from rogue landlords who allow their investments to fall into a state of disrepair. The substandard living conditions many tenants experience shouldn't be acceptable for anyone, nor should needless discrimination. However, there are some positives that landlords can take away from all of this. Ombudsman services should be there to make disputes easier, as well as streamlined court processes and eviction procedures that will simplify the process when dealing with difficult tenants.
Copy

Editor
Riz Malik
Independent Financial Adviser at R3 Wealth
The Renters' Reform Bill, while designed with the intent to protect tenants, may unintentionally exacerbate housing issues in the UK. By limiting landlords' abilities to manage their properties, the legislation risks deterring investment in the private rental sector. Fewer rental properties due to landlord withdrawal, paired with rising demand, could result in inflated rents, exacerbating the very issue this Bill aims to address. Regulation is undeniably important for safeguarding against unfair practices, but a balanced approach is crucial. Overregulation may yield unintended consequences, potentially doing more harm than good.
Copy

Jonathan Burridge
Founding Adviser at We Are Money
This is a good move for tenants and gives them greater protection for a fundamental need of tenure security. The number of properties owned for investment has doubled during the past decade, so, if the impact of this legalisation is a mass exodus of landlords it will mean more property available for owner occupiers and might see prices adjust. The exiting landlords will make a tidy profit and the state coffers will increase because of bumper CGT revenues. I don't see a downside.
Copy

Graham Cox
Director at Bridging Hub
These reforms, including the removal of no-fault evictions under Section 21, are very much to be welcomed. For too long, a minority of unscrupulous landlords have enjoyed all the benefits of renting out property without any of the responsibility. But make no mistake, the Government is only introducing them now because of what they have planned for us. Namely, build to rent on a massive scale. Our new landlords are to be faceless corporations, pension funds, insurance companies and private hedge funds. No doubt many of these 'investors' will be offshoring the profits. This is the Government's surrogate policy for social housing and is why they're doing everything in their power to drive the small or amateur landlord out of the market.
Copy

Rhys Schofield
Brand Director at Peak Mortgages and Protection
You might think that as the proprietor of a firm that specialises in helping first-time-buyers, I'd be in favour of kicking landlords but I'm not. My fear is that if we continue to drive them out of the market, supply falls at a time when demand is growing, which just drives prices higher for tenants. Whilst reform is definitely long overdue, without a proper program of housebuilding running alongside to provide alternatives I think it will be completely counter-productive.
Copy

Rob Gill
Managing Director at Altura Mortgage Finance
While the Renters' Reform Bill itself looks fair, sensible and measured, it comes on the back of years of regulation and tax increases that are making business increasingly tough for landlords. Private landlords are a crucial part of not just the property market but a functioning economy. The government needs to start redressing the balance so landlords have the means and incentives to carry on providing the high-quality property at fair rents that tenants deserve.
Copy

Scott Taylor-Barr
Principal Adviser at Barnsdale Financial Management
For better or for worse one thing that the new Bill does mean is that landlords now need sound advice more than ever; your letting agent, mortgage broker, legal adviser and tax consultant all become key to the success or failure of an individual buying a property to rent out. The worry is that many people will not be willing to seek out and pay for this advice, meaning that they will enter into legally binding long-term contracts without fully understanding their obligations and the constraints it places on them. More than ever landlords, new and old, need to proceed with caution and consult with professional advisers to ensure they know what they are getting themselves into.