Well, we now have yet another Prime Minister, and we are all hoping that politics calms down and becomes boring again.
The return of Gove
So far as the private rented sector is concerned, the most significant event is the return of Michael Gove to the Levelling up Dept. So once again, he is in charge of landlord regulation and the Renters Reform Bill. The main feature of this will be the removal of section 21, the much maligned no-fault eviction ground.
However, landlords are understandably concerned about what will replace it. Ben Beadle, the NRLA CEO, saying
Our survey data shows that most [landlords] can envisage operating without Section 21 provided other proposals, such as on court reform and reformed grounds for possession, have their confidence.
Going on to refer to
the need for action to tackle anti-social tenants, scrapping plans that would decimate the student housing market, and reforming the courts to ensure legitimate possession cases are dealt with more swiftly.
Although reforming the courts is down to another department, the Justice Department, which has problems of its own at the moment.
However, the general feeling is that the government really ought to get on with it if they are going to carry out reform, as the endless delays and uncertainty are putting landlords off and encouraging them to exit the market.
Airbnb regulation
A labour minister is pushing for regulation by way of licensing for Airbnb’s and short lets. She has got the backing of enough members to have included into the Levelling up and Regeneration Bill as an amendment. This is calling for all Airbnb’s and short lets to require a license thus enabling control via councils to limit or deny licenses in areas where there is a shortage of local housing. Rachael Maskell said
Failure to act on this issue is adding to the daily misery of families who can’t find a home and are finding themselves forced out of their local areas, as housing supply tightens and rents. We know that in some tourist hotspots over 50 per cent of homes are now short-term holiday lets, and there are little signs of this slowing down. We urgently need to get a grip on this situation before it is too late.
Rehousing families outside their local area
The Guardian reports this week that the number of families being rehoused outside of their local area is on the rise. Figures obtained by the Guardian under freedom of information state that more than 6000 households were moved more than 20 miles from their local neighbourhood by 53 councils in the last four years. This can cause additional costs for families who are put up in B&B’s with no cooking facilities, so are forced to buy expensive foods already prepared. They also lose their network of family support, adding to additional child costs where often a family member would look after children.
Polly Neate, Chief Executive of the housing charity Shelter, says
The law is clear that councils should always try to keep homeless families within their local areas, and if they can’t, they must make sure moving them doesn’t cause disruption. In practice, we know this doesn’t always happen and families are forced to uproot their entire lives and move away from jobs, schools and vital support networks, causing immense trauma.
More than 32,000 outside-council placements have been made by 66 local authorities since 2018-2019.
Rogue landlord given record fine
Walthamstow Forest council has successfully taken a rogue landlord to court and he was ordered to pay a confiscation order £251,582 for ignoring planning rules. He also had to pay the councils fees of £29725 along with a further fine of £12,000.00. His flats failed to meet minimum floor space along with ‘poor quality accommodation’. This case started way back in 2013 but a council spokesperson said
Justice in this case was a long time coming, not aided by Mr Ahmed’s continued refusal to take responsibility for his actions. That said, the large penalty incurred represents a just result considering the seriousness of the crime. Let’s not forget Mr Ahmed made a hefty profit from the dishonest and deliberate provision of poor-quality housing. I hope this sends a message to any landlord in Waltham Forest prepared to take advantage of their tenants such a greedy and brazen manner.
Other rogue landlords take heed.
Rent control and other warnings
A leading industry figure and MP, Kevin Hollinrake, is warning the government that rent controls are not the way forward and would be a disaster for the PRS causing more regulation and less housing supply, which would be counterproductive for tenants. He says
There was so little choice back then because we did not have Section 21, so if someone invested in the private rented sector and rented a property out – if they were a landlord – and somebody occupied their property, in effect they did so permanently, if they wanted
Furthermore, Section 21 evictions should not be abolished without putting something in its place along with section 8 notices – which take too long and are too expensive. You can read more here.
This should perhaps be read alongside the forecast from specialist rental platform Ocasa, that English private rental is set to top five million homes within the next two years. If landlords are discouraged from being landlords – where are all these people going to live?
As Sales and Marketing Director at Ocasasays:
The government is trying to dampen the private rented sector by making it less and less cost-effective to purchase additional homes for investment purposes such as buy-to-let. But there is still a huge need for rented homes in England – not everyone can or wants to buy their own home.
Quite.
Snippets
- ‘Phoenixing’ agency expelled three times by TPO in just over a year
- Almost half of agents inaccurately value properties, claims allAgents
- John McDonnell hits out at limited company landlords
- Housebuilders worried about Gove’s reappointment
Newsround will be back next week.