We thought it would be helpful in this short Blog to break down the main points covered in the recent The Queen’s Speech, which has paved the way for sweeping reforms to the Private Rented Sector (PRS). The Government is soon to publish a White Paper with further details.
Abolition of Section 21
Section 21 of the 1988 Housing Act is a statutory instrument a landlord can use to regain possession of a rental property. At present it allows for 2 months’ notice to regain possession of a property which, during the Covid pandemic, increased to 6 months at its longest duration.
The intention is to protect tenants from the so called “no fault” eviction whereby a landlord can give a tenant notice without reason. The rationale is that it will put an end to landlords evicting a tenant simply because they complained about disrepair or challenged an unfair rent increase for example.
Here at Belvoir we feel that there needs to be good reason to regain possession of a rental property. Tenants should feel secure in their home without the uncertainty of being threatened with eviction if the property is not fit for purpose.
What does need to be clear is what protections a landlord will have against problematic tenants. These may include the likes of who choose to not pay the rent, display anti-social behavior or cause damage to the property. The Government talks about “levelling up” and the only way this will work is if it fair to both sides.
At present if a tenant is in rent arrears, the most reliable way of recovering the arrears and evicting the tenant is to serve a Section 8 (of the 1988 Housing Act). This is best being served by a solicitor due to its complexity. In the absence of Section 21 the Section 8 will nee d reforming to make it more straightforward should the landlord want to sell or make a claim for rent arrears.
Extending the ‘Decent Homes Standard’ to the Private Rented Sector
This proposal goes somewhat hand-in-hand with the abolition of Section 21 insofar as tenants will be afforded decent quality housing in the PRS. This is only good news and drives out those landlords out of the market who think they can rent a substandard property to a tenant and can get away with it safe in the knowledge they could threaten Section 21 if they were to complain.
Private Renters Ombudsman
The sole aim of this body is to provide straightforward and low-cost redress between a landlord and tenant, without the need of it being heard in court. Tenants will have a better option at their disposal should they need to complain about their accommodation standards and if they think their landlord has acted unfairly.
Introduction of a new Property Portal
This would be a great asset to both landlord and tenant to help them understand their rights and obligations under a tenancy agreement. With the focus on educating this is another prudent measure to help drive up standards in the sector
Final thoughts from Belvoir Lettings Northwich & Congleton
We are very supportive of the proposed changes providing they are balanced for both parties. With the abolition of Section 21 a landlord needs to be assured that they still have the means for evicting a non-paying or troublesome tenant from their property. We will await developments of the White Paper and re-visit this issue when more is known. Until then we will continue to highly recommend our award-winning rent guarantee product to help protect our landlord clients against loss of rent and costly legal/court fees.
We take pride in only taking on decent quality properties and encourage our landlord clients to maintain their properties to an acceptable standard. This needs to be replicated throughout the entire PRS to ensure communities can thrive and supports the economy in general.
If you’ve got any questions please get in touch with us on the numbers on our website.
