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WARNING: Rental reforms put landlords at risk of financial ruin

paul shamplina

Paul Shamplina has warned that the Renters’ Rights Act could prove catastrophic for landlords trying to evict non-paying tenants.

The law extends the period renters can fall into arrears from two months to three, and the notice period required to begin Section 8 legal proceedings from two weeks to four weeks.

“Tenants will get wised up to the fact that if they’re not paying rent, they know it’s going to take ages for the tenant to be evicted,” the Landlord Action founder tells the Daily Mail. “Tenants that play the system or don’t care about their credit rating, their aim is to stay in the property as long as possible, not pay the rent, and leave a day before the eviction. It could be catastrophic.”

Experts

Shamplina – like other property experts - fears the law could see tenants abuse the system. The reforms could also trigger tens of thousands more Section 8 cases, pushing landlords’ waits for repossession hearings - already as long as eight months in some parts of London - even further. Legal fees can stretch into the tens of thousands for landlords, while tenants get free legal aid and can let debt pile up.

NRLA head of policy, Chris Norris, says: “If tenants refuse to move out then you have to go back to get a warrant and then wait for bailiffs.

Waiting

“You can be waiting months to get your property back, even after the court has told you that you are entitled to your property back because those tenants have refused to move on. In the worst-case scenario, you could end up having that property repossessed, you potentially face bankruptcy.”

A Ministry of Housing, Communities and Local Government spokesperson insists good landlords have nothing to fear from the reforms. He adds: “Our landmark Renters’ Rights Act will ensure landlords can fairly act where it is needed, including with strengthened repossession grounds.”

Tags:

Evictions
Paul shamplina
Nrla
renters' rights act

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