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Labour’s tenants’ rights bill

55 replies

Errors · 09/10/2024 11:25

I’ve read about some of the changes that are being proposed by Labour. Some of them I am in favour of - such as the right to have a pet etc.

But AIBU to think that this will make the shortage of rental properties even worse? Landlords have been selling up in their droves due in part to changes in tax law. All I see in my home town is a massive amount of demand and not enough housing stock. A friend of mine works for an estate agent and they can received up to 100 phone calls and emails on any one property. They have to cap viewings at 6 or 7 (otherwise they would never get any other work done!) and so many people are not getting a look in.
I know MN feels badly towards LL in general, and I’m certainly not saying they’re all wonderful people doing a public service, but if it’s made more difficult for them to evict problem tenants, more difficult to increase rent when mortgage payments go up, tied in with the tax law changes, I fear that many will simply give up, sell their properties and walk away from it. Not everyone who is looking to rent will be able to buy those properties and we will have an even smaller supply of rental homes available for people.
Also, I can see a lot of LL hiking up rent as much as they can in advance of this bill being passed. I just don’t think this is going to end well, although I hope I am wrong!

OP posts:
NewGreenDuck · 09/10/2024 14:29

Before assured shorthold tenancies existed we had protected tenancies. There were no S21 notices as the tenancies were not granted for a limited period. I worked as a homeless officer then, ( yes I'm that old!). I dealt with very few people who were homeless as a result of being evicted in the private sector. It was mostly accepted that tenants stayed, if they wished, for life.
As soon as assured shortholds became normal, people who had previously never thought about being landlords started to buy properties. A big plus for them was that they could issue a S21 and the courts could not refuse possession.
I don't see it as a bad thing that tenants have greater security of tenure. It ensures that tenants can actually make plans for their life and the landlord knows he has a tenant who wants to stay.
I agree that courts should be set up to deal speedily with possession orders if the tenant has broken a condition of their tenancy. But if they weren't dealing with S21 notices, and there was greater stability in the private sector that should help.

VanCleefArpels · 09/10/2024 14:28

Bushmillsbabe · 09/10/2024 14:18

The pet thing is an issue. I used to rent out my flat after I had to move for work. The deeds on my flat say that pets (apart from a hamster, goldfish) are not allowed, and if I break these I risk a huge fine and potentially can lose my flat. So any rule which saud I had to allow pets would mean that I couldnt rent my flat out, and it would have sat empty, which isn't helpful for either myself or tenants looking to rent.

See my comment above - leasehold restrictions will still be good reason to refuse a pet

VanCleefArpels · 09/10/2024 14:27

I’m a landlord (Boo! Hiss! 😉) with a few one bed flats that are let out to young professionals at an age /stage of life where they don’t want or can’t buy a property. They typically stay for one or two years, look after the place pretty well and all is good. It’s this market that will suffer most if/when landlords sell up.

I’m considering my options after nearly 10 years in the game as the income/profit returns are shocking compared to other investment vehicles and the capital growth isn’t great in areas that have been flooded with new build developments.

A word on pets - there isn’t a right to have a pet - there is an obligation on the landlord not to unreasonably refuse a request for a pet. A reasonable refusal could be to do with the suitability of the property or other restrictions typical in leaseholds. There may be other reasons landlords rely on (unavailability of insurance for example) which unless litigated means that pet owners can still expect to be turned down in favour of other applicants.

Bushmillsbabe · 09/10/2024 14:18

The pet thing is an issue. I used to rent out my flat after I had to move for work. The deeds on my flat say that pets (apart from a hamster, goldfish) are not allowed, and if I break these I risk a huge fine and potentially can lose my flat. So any rule which saud I had to allow pets would mean that I couldnt rent my flat out, and it would have sat empty, which isn't helpful for either myself or tenants looking to rent.

CranfordScones · 09/10/2024 14:09

Last Sunday, nearly 1,000 people arrived in small boats. Those people all need to be housed somewhere. It's not impossible to imagine a government programme of house-buying to accommodate them. It already exists in some areas: housing associations look to buy back the same houses that were sold under the right-to-buy when they go up for sale. That's not going to depress house prices even if landlords are selling 'in their droves'.

So the bill just makes it more difficult for private renters to find accommodation and more difficult for them to move when they need to.

Good intentions maybe, but doesn't address the problem.

redtrain123 · 09/10/2024 14:08

I think it’s up to the landlords to decide whether a pet is allowed , not the tenant. In instragram, there’s loads of pictures of rooms whereby the puppy has ripped up skirting boards, destroyed carpets etc. . My dog has scratched our doirs and ruined the grass in the garden. Yes, you do get wear and tear in a house, but this is accelerated wear and tear.

I also think that if it’s harder evict people, then that would discourage landlords. The eviction process has to be overhauled, but to the benefit of both parties.

Catza · 09/10/2024 13:54

Errors · 09/10/2024 13:28

And so it should be illegal, that’s a shocking increase.
But if this bill is going to come in to force, watch a whole host of LL either hike rent up as much as they can before it’s illegal to do so, or evict their tenants and sell their properties taking even more rental stock out of the market

But it's a bit of a circular argument, isn't it? The sold properties won't disappear into thin air. They will either be bought by people who are ready to buy a house to live in or they will be bought by larger organisations who will put them back into rental market.
You say not all of those people who rent are able to buy, which is true. But that, surely, also means there won't be many people to sell the properties to.. ergo, the properties will either remain empty (unlikely), become holiday lets (very small proportion) or landlords will have no options but put them back up as rentals.
The argument about LLs selling up or putting rents up didn't play out as everyone expected when the last round of changes was introduced (no agency fees for renters and limits on deposits). I feel, the rental market isn't going to collapse this time round either.

Errors · 09/10/2024 13:50

jollygirlshightea · 09/10/2024 13:31

@Catza I believe that selling a property is an acceptable reason to issue an eviction notice. I really hope it is.

It's a really difficult balance. I agree that the new laws will reduce the amount of rental stock. But I don't know what the answer is other than an absolutely massive social housing building programme. Is that likely to happen?

You’d like to think they would sort out the housing shortage before bringing this bill in!

OP posts:
jollygirlshightea · 09/10/2024 13:31

@Catza I believe that selling a property is an acceptable reason to issue an eviction notice. I really hope it is.

It's a really difficult balance. I agree that the new laws will reduce the amount of rental stock. But I don't know what the answer is other than an absolutely massive social housing building programme. Is that likely to happen?

Errors · 09/10/2024 13:28

Catza · 09/10/2024 12:58

But if no-eviction rules were in place, you wouldn't be in this position. We were evicted last year because we refused to accept 65% increase in rent. Under new law this would be illegal.

And so it should be illegal, that’s a shocking increase.
But if this bill is going to come in to force, watch a whole host of LL either hike rent up as much as they can before it’s illegal to do so, or evict their tenants and sell their properties taking even more rental stock out of the market

OP posts:
EasternStandard · 09/10/2024 13:23

Catza · 09/10/2024 12:58

But if no-eviction rules were in place, you wouldn't be in this position. We were evicted last year because we refused to accept 65% increase in rent. Under new law this would be illegal.

Surely the issue is landlords selling up before it comes in and the issue will be reduction of supply

hattie43 · 09/10/2024 13:22

Chowtime · 09/10/2024 11:28

Well if a shit load of ex rentals suddenly flood the market, which is what you are suggesting is going to happen, then surely thats a good thing, it'll bring prices of purchases down.

It won't bring prices down , there's a shortage of property and has been for years .
Also not everyone renting is in a position to buy .
I think this act is very short sighted to impose it before there's enough housing to go around .

Errors · 09/10/2024 13:22

Once a tenant is renting from you, it is very difficult to get them out. Even if they break their tenancy agreement. If they refuse to leave, other than going through court and getting a court order and then getting bailiff’s involved (which costs a lot of money and takes a lot of time) there isn’t really much you can do

OP posts:
Errors · 09/10/2024 13:20

TwinklyAmberOrca · 09/10/2024 12:18

I think there needs to be a HUGE overhaul of the private rental market, with more rights for both tenants and landlords.

Tenants should be able to have pets, and no fault evictions need to be axed - people need to have a chance to have a home rather than risk eviction after just 6 months.

But Landlords also need far more rights when it comes to tenants that don't pay rent or trash the property. Tenants need to be held accountable for their actions.

I agree with all of this.
I am not sure about no fault evictions though.
The reason being that a friend of mine recently went through a separation from an abusive husband. She had nowhere to go other than the house they were renting out. She tried to evict the tenants so she could move in, they didn’t go - even though they weren’t paying any rent - they actually asked for her to serve them a section 21 as they thought it would help them get a council place. The council told them there was nothing they could do and to stay put because my friend would have had to take it to court to actually get them out and that could take months and months. She didn’t have the emotional bandwidth or the money to take them to court and so they stayed for another 12 months while she had to try and find other accommodation.

OP posts:
Catza · 09/10/2024 12:58

Joterrin · 09/10/2024 11:44

I just got evicted due to the new laws coming in with my landlords being unable to cope with the costs.
I’ve just rang local estate agents, only 1 potential property in an entire town.

But if no-eviction rules were in place, you wouldn't be in this position. We were evicted last year because we refused to accept 65% increase in rent. Under new law this would be illegal.

NamelessNancy · 09/10/2024 12:22

Over quite a long period there has been a shift in rental properties away from social housing and into private hands. This has been exacerbated/caused by things like right to buy and property being seen as a safe investment (ie pushed by successive government policies). If private landlords sell up en masse those currently renting will not magically all find themselves with a deposit for a mortgage and able to buy however low prices drop. Neither is there the social housing availability to house all those renting. It's a shit show.

TwinklyAmberOrca · 09/10/2024 12:18

I think there needs to be a HUGE overhaul of the private rental market, with more rights for both tenants and landlords.

Tenants should be able to have pets, and no fault evictions need to be axed - people need to have a chance to have a home rather than risk eviction after just 6 months.

But Landlords also need far more rights when it comes to tenants that don't pay rent or trash the property. Tenants need to be held accountable for their actions.

Errors · 09/10/2024 12:16

DoreenonTill8 · 09/10/2024 12:08

And what about people reliant on disability benefits? Will mortgage companies accept this as income? Can housing benefit be used to pay a mortgage?

Probably not. It strikes me that the banks that loan us money to buy a house are far more detrimental and corrupt than most landlords are!

OP posts:
Errors · 09/10/2024 12:15

hellsbells99 · 09/10/2024 12:06

My DCs both rent. They are in graduate jobs in cities they don’t plan to stay in long-term. They aren’t in a position to buy and don’t want to buy yet. Rental properties are needed!
I also don’t fully agree about the ‘right’ to own a pet. If a landlord has a small flat he rents out, he doesn’t want for example 2 large dogs (especially if puppies that chew) living there. It wouldn’t be good for the property, the neighbours or the dogs. I know property owners can do what they like regarding pets, but an owner would normally buy somewhere suitable and not be stuck renting whatever they can.

You make a good point on the pet front. I guess in suitable properties it should be fine.

OP posts:
DoreenonTill8 · 09/10/2024 12:08

And what about people reliant on disability benefits? Will mortgage companies accept this as income? Can housing benefit be used to pay a mortgage?

hellsbells99 · 09/10/2024 12:06

My DCs both rent. They are in graduate jobs in cities they don’t plan to stay in long-term. They aren’t in a position to buy and don’t want to buy yet. Rental properties are needed!
I also don’t fully agree about the ‘right’ to own a pet. If a landlord has a small flat he rents out, he doesn’t want for example 2 large dogs (especially if puppies that chew) living there. It wouldn’t be good for the property, the neighbours or the dogs. I know property owners can do what they like regarding pets, but an owner would normally buy somewhere suitable and not be stuck renting whatever they can.

Errors · 09/10/2024 11:45

Joterrin · 09/10/2024 11:44

I just got evicted due to the new laws coming in with my landlords being unable to cope with the costs.
I’ve just rang local estate agents, only 1 potential property in an entire town.

That’s horrendous for you but sadly, is exactly what I hear from my home town as well. Really hope you manage to get something sorted!

OP posts:
Joterrin · 09/10/2024 11:44

I just got evicted due to the new laws coming in with my landlords being unable to cope with the costs.
I’ve just rang local estate agents, only 1 potential property in an entire town.

GU24Mum · 09/10/2024 11:41

It's the whole supply and demand thing and is not going to end well.

If governments want to drive out private landlords (which is essentially what they're achieving), that's fine per se but not before making sure there is enough alternative stock.

witheringrowan · 09/10/2024 11:41

Chowtime · 09/10/2024 11:28

Well if a shit load of ex rentals suddenly flood the market, which is what you are suggesting is going to happen, then surely thats a good thing, it'll bring prices of purchases down.

It only partially solves the problem. Owner occupied households tend to be much smaller than rented households. Think about places where you have lots of young grads in house shares - you might have 4 or 5 people in that home, who wouldn't buy together. So the landlord sells, that houses one other family or maybe one of the renters if mum & dad give them a hand with the deposit. But you still have 4 people who will be looking for somewhere to live.

Look at what's happened to rents in Scotland over the last 2 years. The government brought in much stronger regulation and restricted the ability to raise rents, as a consequence both individual and institutional investors have been leaving the market/not investing in new stock, and as a consequence annual rental increases are still around 8% after a couple of years of 12-15% increases. It's the region with the fastest growing rent for new lets of anywhere in the UK.