Unintended consequences of plans to ban Section 21 evictions ‘already happening’

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A new landlord survey has revealed the effects of the Government’s proposals to ban Section 21 evictions already feeding into the private rented sector.

Evictions specialist Landlord Action canvassed some 1,500 landlords and found that 26% of those who had evicted a tenant over the past 12 months via a Section 21 had done so because they wanted sell the property.

Other reasons given included rent arrears (31%), anti-social behaviour (22%) while just 2% said it was in order to move back in.

Of those who said they planned to evict their tenant over the next 12 to 18 months, 24% said they were making the move because of the increasing legislative burden means they have decided to sell.

The proposed Rent Reform Bill, which will see Section 21 ‘no fault’ evictions banned, was also a key reason for landlords seeking to remove tenants in the coming months, with 28% of landlords saying this was the main reason, with a further 28% saying they were undecided.

Unintended consequences

“The response to our latest survey paints a very clear picture of the unintended consequences of abolishing Section 21,” says Paul Shamplina (pictured), founder of Landlord Action and Chief Commercial Officer for the Hamilton Fraser Group.

“More than a quarter of tenants who have or will be asked to leave their rental properties (via receipt of a Section 21 notice), are in such a position not because they have done anything wrong but because landlords fear they will be unable to gain possession of their property easily in the future, if their circumstances change.

“Competition for rental properties is already at an all-time high, and we could be heading towards a rental stock crisis.

“Whilst we don’t know how many of the properties sold will remain in the buy to let sector, it’s clear that tenants will ultimately suffer as the combination of pressures forces rents to continue to rise.

“Landlords need reassurance and clarity on the future of evictions soon if the sector is to avoid a deluge of evictions and homelessness.”

Read more about the Government’s plans to reform the private rented sector.

View Full Article: Unintended consequences of plans to ban Section 21 evictions ‘already happening’

Speculation grows that Rees-Mogg will be Housing Secretary if Liz Truss wins

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It’s known as ‘silly season’ when the media focuses on light-hearted stories, but news that Jacob Rees-Mogg (pictured) is being mooted as the new Levelling Up Secretary has been seen by some as no laughing matter.

As the leadership contest draws to a close, preparations for Liz Truss’s potential premiership are reportedly well under way and she is thought to already have a clear vision of her cabinet.

There’s speculation that the Old Etonian and loyal Truss supporter could soon fill Greg Clark’s shoes, who only took over from previous incumbent Michael Gove at the beginning of July.

But the idea of Rees-Mogg – mocked as the ‘minister for the 18^th century’ – being put in charge of the Tories’ flagship policy has been greeted with a mixture of exasperation and disbelief.

As well as being responsible for narrowing growing inequalities in the UK, he would be tasked with sorting out the fall-out of the cladding scandal, homelessness, housing development, and of course, the Renters’ Reform Bill.

Brexit opportunities

In his defence, Rees-Mogg has held key positions as leader of the House of Commons as well as minister for Brexit opportunities and government efficiency.

But the Eton-educated son of a lord made millions as an investment banker before entering politics – not ideal qualifications for someone in charge of community regeneration. He was also forced to apologise after suggesting that victims of the Grenfell Tower fire had not used “common sense”.

However, the leak could be a bit of a smokescreen to distract from other more serious problems, while some Westminster insiders have suggested Truss has marked out Simon Clarke for the role – a former minister at the Ministry of Housing, Communities and Local Government and currently number two at the Treasury.

View Full Article: Speculation grows that Rees-Mogg will be Housing Secretary if Liz Truss wins

More than a quarter of landlords who evict tenants do so to sell up

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It has been revealed that 26% of landlords who have issued a Section 21 notice of eviction to their tenants in the last 12 months have done so because they plan to sell their property.

The survey was carried out by Landlord Action

View Full Article: More than a quarter of landlords who evict tenants do so to sell up

London borough’s HMO Selective Licensing scheme approval – with a twist

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A new property licensing scheme has been approved to provide safer housing in Haringey – but there’s a twist for landlords.

The council says that for some rental properties in the east of the borough, landlords will have to improve the energy efficiency rating to get HMO approval.

View Full Article: London borough’s HMO Selective Licensing scheme approval – with a twist

Tenants opt to stay put as rents continue to surge

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A lack of homes to rent is causing tenants to remain in their homes, research reveals.

In its latest report, Propertymark says that 73% of letting agents say they have seen an increase in renters wanting to renew tenancies rather than move over the past year.

View Full Article: Tenants opt to stay put as rents continue to surge