Landlords Corner – Labour Government and What Next In PRS?
As you may have heard, there are significant changes on the horizon for the Private Rented Sector (PRS) with the introduction of Labour’s new Renters’ Rights Bill. This bill, highlighted in the recent King's Speech, includes the controversial proposal to abolish Section 21 'no-fault' evictions.
Proposals also include expanding landlords' possession grounds, and introduce the Decent Homes Standard to the PRS.
At this point in time, it is only speculation when change will occur, and if it does what changes will take place, but landlords should be aware new obstacles are likely in the rental sector.
With the Labour Government now in place, and Labour being traditionally tougher on landlords, many in the industry expect to see some changes. Whatever happens, we’ll ensure you are fully informed.
Understanding and Influencing Legislation
It’s crucial for property professionals to stay informed about these proposals and actively engage with Members of Parliament (MPs). In the past, we’ve seen that MPs are willing to listen and make amendments based on the insights from those within the industry. Now, more than ever, it’s essential to prove that we, as agents, possess reliable information and expertise regarding the PRS.
Addressing the Court Backlog
One of the main challenges this Bill faces is the existing massive backlog in the courts. This backlog can undermine landlords' confidence in their ability to regain possession of their properties when necessary.
Balancing Supply and Demand
Currently, there is a high demand for rental homes, with around 15 households vying for each available property. Any increase in demand could lead to higher rents. Therefore, it’s imperative that the measures in the Bill do not negatively impact the housing supply within the PRS.
Remember, agents, tenants, and landlords share the common goal of maintaining good quality homes and a stable lettings market. However, we appreciate most media outlets present news and information to their audience, which contains far more tenants than landlords.
Therefore, if you want to remain up to date with the Renters’ Rights Bill in a way that represents your needs, please stay in touch with us. At Trading Places, we work with landlords and tenants, providing balance and ensuring all parties have the information they require to make informed decisions.
What are groups supporting tenants saying?
It is understandable that groups who support tenants welcome change and more support in the industry.
Matt Downie, Crisis chief executive, said: “This King’s Speech signals that housing is a clear priority and gives renters lots to be hopeful for with the announcement of the Renters’ Rights Bill. With no fault evictions one of the leading causes of homelessness, this legislation is a critical first step towards ensuring everyone has a safe home. Private renters have had to wait for reform for far too long and thousands have lost their homes because of it. It’s vital that the new government brings forward this legislation immediately, so that no one else must go through the trauma of being forced into homelessness.”
If you are looking for guidance on the Leytonstone rental market, or you just want a helping hand in complying with rental market regulations, we are always here to assist you.
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