Abolishing Section 21 will be a ‘disaster’ warns leading northern landlord

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Removing Section 21 will be a disaster – and the threat is causing good landlords to quit the sector, says one fed-up investor.

York-based landlord and developer, Matthew Laverack (inset, main pic), believes politicians should stop bashing landlords and make it easier, not more difficult, to provide housing.

While the cost of living may be extremely challenging, so is being a landlord during a time of high costs, onerous regulations and abundant financial risks.

Writing in the York Press, Laverack says Section 21 doesn’t allow landlords to give two months’ notice without reason and was introduced to give certainty to investors who otherwise wouldn’t be interested in private rentals.

“Removing Section 21 is a disaster,” he says. “Landlords make a living renting out homes. They make a loss when homes are empty and don’t give notice unless they have to, when a tenant doesn’t pay and/or behaves appallingly.”

Laverack has had some tenants for more than 20 years who started out with a six-month tenancy.

Throwing out

“We don’t invoke Section 21 because providing homes is our livelihood – throwing out good tenants isn’t what happens,” he adds.

“The housing crisis cannot be solved by rent controls. It is throwing petrol on a fire. It makes more landlords leave the market with few investors willing to replace them. Also, financial institutions will not fund an enterprise with rising costs and a fixed price cap.”

Alternative view: Why abolishing Section 21 isn't all bad news for landlords

Laverack, who has been in the rental and housebuilding sector for 40 years, has previously spoken out against government interference for deterring investors who would have helped meet the demand for housing but decided it was no longer worth the risk.

Read more about Section 21.

Pic credits: Getty/Matthew Laverack/Twitter

View Full Article: Abolishing Section 21 will be a ‘disaster’ warns leading northern landlord

Landlords urged to give views on major changes to Scottish EPCs

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Landlords are being urged to give their views on an overhaul of EPCs (Energy Performance Certificates) in Scotland including making both residential and commercial landlords and homeowners renew them every five years rather than ten.

This is Ministers’ second attempt to reform EPCS. In 2021 they consulted on reforming EPCs to add a metric showing a property’s energy use, but now a second one is due to end on 10^th October.

No changes were made to EPCs following the original consultation but now the government is carrying out a new consultation on more extensive changes to EPCs, with the new EPC regulation brought in during late 2024.

The newly-proposed changes are designed to help homeowners and tenants understand their building’s energy performance, but the Scottish Government believes the current metrics, ratings and format aren’t ‘suitable’ to drive improvements and meet net zero targets by 2045.

Its new consultation – setting out proposals to reform domestic and non-domestic EPCs – includes plans to change the metrics, purpose and validity period of EPCs, the document format and quality assurance procedures.

Stakeholders

Changes would provide “relevant and holistic information” to ensure EPCs provide clear and useful basic information about a building’s energy efficiency for current and prospective building owners and tenants, and other stakeholders.

As well as using a letter to describe a property’s energy efficiency, three new rating types would be added – building fabric, cost and heating type – to give tenants and homeowners a clearer idea of what they are renting or buying.

Also on display will be an ‘emissions rating’ and an ‘energy use indicator’.

This means that landlords will no longer be able to make small changes (such as replacing a boiler) to get a property over the line to a ‘C’ as is the case now, but instead make more substantial improvements that meet the ‘net Zero’ target.

The Scottish government wants feedback ahead of the introduction of revised Energy Performance of Buildings (Scotland) Regulations due in Winter 2023-24 which would mean that revised EPCs would come into force shortly afterwards and in advance of wider Heat in Buildings Regulations planned for 2025.

As in England and Wales, Scottish landlords have until 2025 or 2028 to get their properties to a minimum ‘C’ level depending whether a tenancy is new or existing.

Impact

Any update to the EPC system would have a significant impact on letting agents, sales agents and commercial agents, says Propertymark CEO Nathan Emerson (pictured).

He adds: “Whilst we understand the Scottish Government wants to reach net-zero, attention must be paid to ensuring information contained is clear and concise to allow users to gain the very best understanding.”

Read the consultation.

Landlords have until 10^th October to submit their views via the Government’s consultation hub.

View Full Article: Landlords urged to give views on major changes to Scottish EPCs

Letting agent expelled from TPO owing landlord £10k appears to be still trading

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A letting agent operating in Stratford, East London, has been expelled from The Property Ombudsman (TPO) due to its failure to honour a compensatory award amounting to £10,264 to a landlord – but appears to be trading still.

The award came after a landlord lodged a formal complaint with TPO after a dispute involving the letting agent’s management of a property.

View Full Article: Letting agent expelled from TPO owing landlord £10k appears to be still trading

LATEST: Demand for rental property remains strong as property sales nosedive

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The latest RICS housing report has revealed a sharp downturn in property sales but in contrast a rental market bolstered by continuing ‘strong demand’, landlords will be relieved to hear.

While those selling homes are seeing demand for properties evaporating fast as high mortgage interest rates dent buyer confidence, those offering properties to rent have seen demand rising firmly over the three months to July.

RICS says this points to the “strongest quarterly pick-up in rental demand since the start of 2022”.

Set against this, the number of landlords asking agents to list properties to rent declined for another month in a row.

This is good for landlords profitability as fewer properties on the market lead to higher rents, but it will lead to further headlines that the market is ‘broken’ as more and more house hunting renters are asked to pay higher and higher rents.

Consequently, more agents have told RICS they expect rents to rise over the coming months than during the last quarter of the year, the report shows.

Constrained

RICS Chief Economist, Simon Rubinsohn (pictured), adds: “The recent uptick in mortgage activity looks likely to be reversed over the coming months if the feedback to the latest RICS Residential Survey is anything to go by.  

“Just as concerning are the insights being provided around the lettings markets.

“Demand shows no signs of letting up, supply remains constrained and that means rents are likely to continue rising sharply despite the cost-of-living crisis.”

The Homelet rental report, also published today, reveals that the UK monthly rent has hit an all-time high of £1,243 PCM, up 1.1% from last month, or £1,032 excluding London.

View Full Article: LATEST: Demand for rental property remains strong as property sales nosedive

Find out how to tax efficiently structure & manage your property portfolio in this free event!

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With high-interest rates, huge uncertainty & opportunity in the market, there has never been a better time to consider the structure for your property investment.

As landlords, tax will be one of the biggest costs you face and you will want to find a way to legitimately reduce this.

View Full Article: Find out how to tax efficiently structure & manage your property portfolio in this free event!