Renters rights bill

[MoneyNeverSleeps]

A question for LL’s please - what changes will you make in preparation for Labours Renters rights bill please? And what do you see as the wider consequences?

For those who simply wish to hate on LL’s, please don’t bother posting.

I think we need a published bill before trying to work out how to live with it or evade its consequences.

Thanks.

A guide is already on gov.uk

We won’t make any changes. We already don’t evict without reason (luckily never had to evict anybody so far!) and we also allow pets (again luckily people were reasonable and asked to keep a cat or small dog in. The apartment which was totally size appropriate, nobody wanting to keep a St Bernard’s in a second floor one-bed flat!).

As for the damp and mould law (Awaabs Law) this was a council property which was so badly maintained it caused the problems. We keep our properties totally up together to avoid damage to the property and obviously give a good standard of renting. So again nothing new for us.

That is as far as I have seen the main changes proposed. I was a lot more concerned about the minimum energy banding C or above supposedly coming in 2025 but that has been postponed for now.

We became landlords over 10 years ago. Our BTL property was intended to be our retirement safety net (passive income that would rise in line with inflation unlike a pension).

Our tenants were already renting the property when we purchased, and are still there now. We have only gradually raised the rent in that time, and always kept it below market rate.

The tenants are a young family with 3 kids that rely on benefits to top up their wages. They have two dogs and various other small pets. We promptly address any maintenance issues and have a great relationship with the tenants, who tell us immediately if there's an issue. If they want to make any non-essential improvements to their home, we give them free reign to choose colours etc within a budget and the arrangement is we pay for materials if they are willing to do the labour themselves. They are very happy.

This recent backlash against 'greedy landlords' is ridiculous. Of course there should be sanctions for those who provide an unsafe living environment or treat their tenants badly, but they are in the minority.

Every other landlord I know is selling up, and often having to evict their tenants in the process (because surprise, surprise nobody wants to become a landlord these days).

The effects of these poorly thought out government policies mean huge demand for rental accommodation that is in increasingly short supply (and therefore prices out the majority), coupled with vanishingly little social housing. Whole families (who are forced to surrender their pets to rescues), are being 'temporarily housed' in one room in Premier Inn's & Travelodges by councils along with anyone else that may need accommodation.

We are seriously considering selling. Being a landlord just isn't worth it anymore. We can better invest the money elsewhere. What will happen to our tenants then?

Thanks - we are in a similar situation to you.

Pondering our options.

Houses don’t miraculously disappear when LLs sell them. Please don’t feel bad for you tenants - feel happy that people’s mortgages will become more affordable.

Being a LL is not a public service. If rentier capitalism is not working out for you, that’s fine.

I know of 2 LL selling to their tenants and another one considering due to the changes proposed.

I don't think anybody thinks the houses disappear 🙄

The bigger question is...if private landlords sell up, WHERE ARE THE TENANTS SUPPOSED TO LIVE?

Don't start the rubbish of "they'll be able to buy" no they won't. I am both a renter and work in the industry (for one of the agent accreditation schemes no less) and the ramifications could be huge as nobody seems to have considered the bigger picture.

Not everyone can buy, or will ever be in a position to do so - and without the PRS, where do these tenants go?

They’ll have to get out like all the tenants in my 8 BTL’s did.

This recent backlash against 'greedy landlords' is ridiculous. Of course there should be sanctions for those who provide an unsafe living environment or treat their tenants badly, but they are in the minority.

Regulations and restrictions are brought in in response to enough pressure brought over publicised and known cases of inadequate and harmful conduct (here: rogue landlords). It's all very well to say that you never evict tenants unreasonably, always arrange to handle all flagged-up repairs within 24 hours, return the deposit in full minus extremely reasonable deductions within 24 hours of the tenant moving out, always give full week's notice of when you'd like to inspect the property and arrange the specific time slot with the tenants, increase rent reasonably and minimally based on necessary extra costs with many months' notice, and proactively ensure the property is maintained at a reasonable standard, carrying out gas, electricity, mould checks, etc. The problem is that others don't. Increasing regulations and restrictions are brought in as a response to that. In order for there to be adequate protections against being made homeless and against landlords providing inadequate housing, there must be restrictions and regulations on landlords and on the rental market.

Perhaps you should blame all the rogue landlords who are giving you a bad name?

As we are apparently shouting - THERE WILL BE FEWER TENANTS!

The PRS will adapt and perhaps shrink a little. We managed perfectly well before the rules changed in the 80s. The gvt are finally building social housing.

I don’t have a problem with accidental landlords, or pensioners with a single rental, but tte sector as a whole is poisonous and needs stronger regulation.

I'm a bit mystified by your post, which doesn't say which particular elements of the proposals in the bill would change how you operate or make you want to sell up (so it doesn't really answer the question in the OP!)

We also have a single rental flat (rented for twenty years). I don't see that the bill will make any difference to the way we operate. The various changes over the last few years have sent rents into the stratosphere where we live. It's very hard on tenants, but it's been very good for us financially. I would say that's generally true for good landlords - increased regulation just makes mandatory what decent landlords were already doing but has the indirect effect of putting market rents up, which I'm not going to complain about.

Please explain how people’s mortgages will become more affordable, resulting from some LLs selling.

The economics please.

As we are apparently shouting - THERE WILL BE FEWER TENANTS!

This seems to make sense at first glance, but it's not a one-to-one relationship. Switching housing from rented to owner-occupied does cause problems in the rented sector because rented housing is more densely occupied.

For example, a two-bedroom flat might well accommodate two couples when it's rented out. It won't if it's sold off. HMOs would be another obvious example. The result is that supply of rented accommodation falls by more than demand and rents go up.

So our question was loaded.

Last night we took the decision to issue S.21s
on our three BTLs in Surrey. All great tenants -
one couple coming up to ten years. The notices will go out this week.

Im not sure any of them can or want to buy but hey.

We will either sell or look to relet on an astronomical rent, with guarantors etc. Oh, and they are small houses - which tenants seem to prefer over flats.

The risk/reward is no longer there.

Ok, bring on the hate…

The government should focus on building social housing and developing regulation that does not punish good landlords. Once tenants have housing choice then Labour can go after the PRS if it does not ideologically meet their needs.

To go after the whole sector before the social housing is built (which lets face it, is not going to be straightforward - we don't have the construction workers needed for a start), is not sensible.

But it's typical Labour policy - levelling down rather than up.

I will be selling up . I only have one property bought for retirement income . I am a good LL my tennant has been in there 10zyrs , things are addressed quickly , and I have never charged the going rate on the basis my tenant is good .

I am concerned with the squeeze and squeeze on landlords not just from the government but now the local council who want to get in on the act . I am worried about not having the flexibility of my own property and the never ending legislation is making
the whole thing tiresome .
Some of the very worst property is council and housing association in my rental area yet it's always private landlords subjected to the worst pressure .

We’ve already issued a s21 to our tenant and will be selling. To be fair we’d have done it anyway as he’s slowly wrecking the joint, but the fact that being a landlord is no longer financially viable has pushed the decision to sell. Ideally I’ll find a nice young person or couple who want their first starter flat who we can sell to in due Course.

And I agree with @TeenagersAngst about social housing. If governments had invested in social housing I think people the country would be in a much stronger position.

You’re entitled to do it, op.

It’s shit for your tenants. Really shit. It happened to us three years ago and my family are still struggling as a result. Moving wiped my savings. We have moved three times now as we couldn’t find anywhere permanent. We’re now living somewhere I hate, because I have no choice. I’m also saying twice the rent I was, to live in a much less desirable area. It sucks for the tenant.

The Renters’ Bill will have a devastating impact on renters. It’s already happened in Wales. There are no rental properties. You apply, and get rejected because there are 30+ people applying for each property. Often you can’t even get a viewing. We expanded our search to houses that were too small, 30 miles from schools etc, and there’s nothing. It won’t help tenants, it will just follow the nightmare situation that’s evolved in Wales.

I think it is unfair to describe this as a LABOUR renter’s rights bill. It is the bill drawn up under the Conservatives but not implemented because of the election. It attempts to give tenants a bit more security than they currently have in line with legislation in most other Europeam countries.

I do not think it will have much impact on the majority of landlord’s and tenants though. Landlords want reliable tenants. Tenants want reliable landlords. When they find each other the tenants can usually stay put for as long as they wish.

I think the pressure will come at the bottom end of the market - so on landlords operating on tight margins and housing less reliable tenants. Under the current arrangements (no fault) landlords know they can eventually get rid of tenants who do not pay the rent or behave in an anti social manner. It takes a while because the courts are backlogged, but it is straightforward if you know what you are doing.

I can see two big problems:

Proving anti social behaviour. It is one thing for the neighbours to complain to the landlord informally about anti social behaviour. Landlord can then issue a Section 21. Totally different to have to make a statement to the court which will identify you while still living next door to the drug dealer with two pit bulls. And existing court backlogs will increase when this legislation is implemented. Those worst impacted by this will be those living next door to dodgy tenants. Landlords can insure against losses.

But I suspect that the worst affected will be potential tenants with unreliable income streams ( Low paid workers in insecure jobs rather than those on benefits) Not sure which landlords will be prepared to rent to these people. And given the lack of social housing they will end up homeless.

So sorry Mojo - not all of us are a-holes.

i wish you well.

You don’t deserve any hate OP.

You, like everyone else, are only trying to do your best in life with what you’ve got. You can’t revolve your big life decisions around the ideals of your tenants.

Thanks.

There are some pretty major differences between the proposed rental reform act and this. Otherwise the S&D is dysfunctional with huge demand in some regions which will just result in much higher rents (also factor in increased risk as a LL).

I largely agree with the remainder of your post.

Wider consequences is that there will be no houses to rent, people are already struggling to find rented properties.
You may have to go through eviction process, as council refuse to rehome without eviction. Be a good landlord & don't pass on the court fees to your tenants.