Landlords have 'good reason to be concerned with renting reforms'

Landlords have joined up with agents and build-to-rent operators to issue a strong-worded letter to the housing minister, warning that unless more details are provided on its key proposals, the legislation will be ‘unworkable’.

The group includes the British Property Federation (BPF), the National Residential Landlords Association (NRLA) and The Lettings Industry Council (TLIC) who have jointly written to housing minister Baroness Taylor ahead of the bill’s next stage in the Lords on 1st July.

One key area of concern is evictions. Despite Ministers pledging to ensure the courts were “ready” for the impact of abolishing Section 21 ‘no fault’ evictions, the Government has not explained how long the courts will take to consider and process legitimate possession claims.

This, the letter says, is a significant source of concern for landlords given the already considerable delays in the system which at some courts can stretch to six months.

The group also warns that plans which will make it easier for tenants to challenge ‘above market’ rent increases at a Tribunal are also unworkable.

This is because there is no reliable single source of data to work out what ‘market rents’ are in any given area – making it impossible to assess whether a rent increase is above it or not.

Rent arrears

Also, the Government has not explained how proposals to make it more difficult for landlords to repossess a property where rent arears are due to delayed benefit payments will work.

Private landlords are not allowed to be notified when a tenant is claiming benefits in the first place. This means they will not know if rent arrears are due to benefit payment delays unless and until a possession case goes to court.

And there also worries that the Government has not provided the sector with ‘clarity’ about when it expects changes to rental tenancies to take effect once the Bill receives Royal Assent.

This is important if there is to be a smooth transition to the new systems and processes for letting agents and landlords with larger portfolios.

Ben Beadle (pictured) Chief Executive of the NRLA, Melanie Leech, Chief Executive of the BPF and Theresa Wallace, Chair of TLIC, have released a join statement saying: “We remain extremely disappointed by the lack of substantive responses to the concerns we have consistently raised with ministers.

“We want the Bill to work in practice and enjoy the confidence of good landlords. However, unless clear answers to the issues we have raised are forthcoming from the Government, those very landlords have every reason to be concerned.”