Posts with tag: Section 21

Generation Rent calls for government to help struggling renters

Published On: May 13, 2020 at 8:15 am

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Generation Rent

A new survey of renters undertaken by Generation Rent looks into the number of landlords willing to help tenants struggling to pay rent.

The results show that the number of landlords reducing rent for struggling tenants are outnumbered 8 to 1. Only 7% of those who asked their landlord to lower rent prices and 56% were asked to pay in full.

Generation Rent has stated: “The findings suggest that most landlords with tenants whose incomes have been hit by the lockdown are ignoring the government’s appeal to their compassion. As a result, millions of renters will get into rent arrears, with limited protection from eviction once restrictions are lifted, and little prospect of clearing their debts.”

In a survey of 1,542 renters conducted by Generation Rent, 868 respondents (56%) said they had lost income since the lockdown started. Of renters who had lost income, 38% had asked their landlord for a lower rent. A further quarter (25%) were considering an approach to their landlord, while more than a third (37%) said they probably would not.

Of those who had asked, in just 7% of cases the landlord had offered a lower rent that was not repayable. One in four landlords (25%) offered a deferral of rent, but in more than half of cases (56%), the respondent said the landlord had demanded the full rent. The remaining 12% were waiting to hear back.

Generation Rent is calling for:

  • Suspension of Section 21 “no fault” evictions
  • The removal of rent arrears built up during the pandemic as a ground for eviction
  • Removal of caps on benefits and increasing local housing allowance to cover median rent
  • Mortgage lenders to require buy-to-let customers with a mortgage holiday to pass it on to their tenants
  • A freeze on rent increases for 12 months

Dan Wilson Craw, Director of Generation Rent, said: “Some landlords are doing the right thing by reducing rents for tenants who have had their incomes slashed.

“But most tenants who have approached their landlord for help are getting nothing – except more dread that they’ll be evicted. Relying on landlords’ compassion isn’t working. 

“If the government lifts restrictions without providing new protections, millions of renters will face losing their home and we will compound a public health crisis with a homelessness crisis.

“The government and landlords must realise that renters on reduced incomes will have no hope of paying off arrears at current levels of rent.”

The National Residential Landlords Association (NRLA) disagrees with these findings. They have responded that Generation Rent is wrong to claim that the majority of landlords are failing to support tenants needing help during the COVID-19 pandemic. Read more here.

Ongoing housing possession action suspended by MHCLG

Published On: March 30, 2020 at 8:19 am

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housing possession action suspended

The Ministry of Housing, Communities and Local Government (MHCLG) has now suspended all ongoing housing possession claims.

This decision was made last Friday by the Master of the Rolls, England’s second most senior judge. It means evictions can no longer go ahead legally until further notice.

The MHCLG said in a statement: “From 27 March 2020 following a decision by the master of the rolls with the Lord Chancellors agreement, the court service will suspend all ongoing housing possession action – this means that neither cases currently in the or any about to go in the system can progress to the stage where someone could be evicted.

“This suspension of housing possessions action will initially last for 90 days, but this can be extended if needed.

“This measure will protect all private and social renters, as well as those with mortgages and those with licenses covered by the Protection from Eviction Act 1977. This will apply to both England and Wales.”

David Cox, Chief Executive, ARLA Propertymark comments: “However difficult it may be, this is the right decision in light of the current circumstances. Yet evictions will not be required if we can keep the rent flowing. 

“The latest advice is that people stay put, and as long as the Government helps tenants pay their rent, there will not be a large build-up of debt from rent arrears, meaning there will be no logical reason why a landlord would start eviction proceedings.”

12-month contracts for tenants made mandatory by Welsh Government

Published On: February 12, 2020 at 9:35 am

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12-month contracts

It has been announced that 12-month contracts will become mandatory in Wales’ private rental sector (PRS), under the new Renting Homes (Amendment) (Wales) Bill.

This will mean that Welsh landlords can’t serve notice during the first six months of a new tenancy. The subsequent notice period will be extended from two months to six.

In the situation that a landlord wished to repossess their property, it will now take at least a year.

This new rule will only apply to ‘no-fault’ repossessions. Shorter notice periods will still be allowed for possession notices issued when a contract has been breached under current Section 8 rules.

RLA warning

The Residential Landlords Association (RLA) has warned that many landlords use the ‘no-fault’ repossession route when tenants are not paying rent, are making neighbours’ lives a misery or are wilfully damaging the property because the alternative is not fit for purpose.

Douglas Haig, RLA vice chair and director for Wales said: “While we acknowledge the minister has recognised the complete removal of Section 21 would be bad for the sector, we are disappointed with today’s proposals.

“It is absolutely essential that landlords with a legitimate reason to repossess their property are able to do so.

“If they do not many could opt to leave the market altogether – leaving renters with fewer options and potentially pushing rents up.

“The government says that those with grounds to repossess can still give the shorter notice period using Section 8.

“However, RLA research shows 83% of landlords who used Section 21 had done so because of rent arrears alone. Over half had experienced anti-social tenants. 

“This proves that despite having grounds to evict landlords are currently five times more likely to use the ‘no fault’ Section 21 notice, due to the lengthy court waiting times and expense associated with Section 8.

“Despite this, proposals do not include any plans to reform the grounds process, something we believe is vital before any change of this kind is made, to avoid a devastating cut to the supply of homes to rent in Wales at a time when demand continues to grow.”

When will the law change?

Following a consultation that took place last year, the new law has now been introduced before the Senedd by Minister for Housing and Local Government Julie James.

The Minister says this will provide greater security for tenants in the PRS, while still allowing landlords to take back their properties ‘in a timely manner’ where the tenant is at fault.

The Bill amends the Renting Homes (Wales) Act 2016. It is anticipated to come into force in the spring of 2021.

Announcing the change, the Housing Minister said: “The new Bill I am unveiling today will add further significant protections for those who rent their home in Wales to those already included in our landmark Renting Homes legislation.  

“These include, ensuring that a possession notice where there is no breach of contract cannot be served for the first six months of occupation, and where possession is sought, giving the contract holder six months’ notice. 

“This will provide valuable time for individuals and families faced with possession under section 173 and the organisations and agencies that support them, to find a new home that is right for them and make all necessary arrangements for a smooth transition to their new home.    

“I believe the Renting Homes (Wales) Act, as amended, will provide a sound basis for renting in Wales: balancing the needs and rights of both tenants and landlords and helping ensure our PRS is a well-managed option for households.” 

ARLA Propertymark comments

David Cox, Chief Executive of ARLA Propertymark, says: “Extending notice periods from two months to six months under the Renting Homes (Amendment) (Wales) Bill will cause further shockwaves for landlords and agents. The proposals will make it even more difficult for landlords to reclaim possession of their property and add further longevity to an already lengthy and expensive eviction process.

“We are concerned that landlords will have no viable option of evicting problem tenants quickly and efficiently due to current court procedures. If landlords sell up due to the perceived risk, this will shrink the sector and contribute to landlords being more selective about who they let their property to.

“The Welsh Assembly must reconsider extending the minimum notice period and take a long-term, holistic view that supports those who are providing professional and well-managed tenancies.”

RLA: London courts need to be reformed

Published On: January 16, 2020 at 10:00 am

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ban on evictions

Landlords in London are facing long waits for courts to issue repossession orders. The RLA says the courts are failing to cope with the demand. 

New figures published yesterday show that London landlords are facing waits of around 30 weeks on average between making a legitimate claim and courts issuing repossession orders. 

Worryingly, this figure is up from 23 weeks last year.

London has the highest waiting time in the country. The unwanted title of second place is held by the North East region, where landlords are waiting 23.5 weeks on average.

The Residential Landlords’ Association (RLA) has warned that this will only get worse if the government goes ahead with their plans to end Section 21 evictions. Courts will need to spend more time determining the circumstances of cases and pressure on them will increase.

They also believe that good landlords will begin to disappear as word spreads on how long legitimate repossession takes. The knock-on effect could be that life is made more difficult for tenants looking for a place to live.

The RLA is calling on the Government to establish a dedicated housing court in order to improve and speed up access to justice for landlords and tenants in the minority of cases where something goes wrong. 

John Stewart, Policy Manager for the Residential Landlords Association, said:

“If landlords feel that they might have to wait forever to regain possession of their property where they have good reason, such as tenants committing anti-social behaviour or failing to pay their rent, increasing numbers are going to feel it is not worth the risk of letting the property out in the first place. This will just add to the already growing shortage of investment in rented housing which is badly needed to meet a rising demand.

“The RLA was delighted when the Government consulted on its proposal for a housing court a year ago but nothing has happened since. It needs to get on and get it set up for the benefit of landlords and tenants alike.”

RLA: Shelter is stoking needless fears for tenants

Published On: January 15, 2020 at 10:32 am

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RLA: Shelter is stoking needless fears for tenants

The Residential Landlords’ Association (RLA) has today urged caution on groups such as Shelter, who they say claim to represent tenants, but may be fuelling stress by giving them a bad impression of landlords.

Responding to new research published by Shelter today, The RLA says that no one should feel ill or stressed as a result of their housing situation, whether that it is in the private or social rented sectors or in the home ownership market.

Shelter’s research shows that renting is making people ill, with nearly half of those surveyed saying that renting has caused them to suffer from stress and anxiety,  and a quarter to get physically sick. 

The RLA, however, says that rather than relying on what they believe to be a poll based on a limited sample group, with potentially loaded questions, people should refer to the official 2017-18 English Housing Survey published by the Ministry of Housing, Communities and Local Government (MHCLG) which shows that:

  • 84% of private sector tenants are very or fairly satisfied with their current accommodation, a higher proportion than tenants in the social rented sector.
  • Private sector tenants live in the same rental properties for an average of 4.1 years.
  • The proportion of private rented housing with at least one of the most dangerous ‘Category 1’ hazards has halved over the last ten years to 14 per cent.
  • The amount that tenants in private rented housing are paying in rent as a proportion of their income is falling, whilst in the social rented sector it is increasing.
  • Almost 90% of tenancies brought to an end are done so by the tenant, not the landlord.

David Smith, Policy Director for the RLA, said:

“We accept that, unfortunately, some private sector tenants will feel unhappy and stressed as a result of their housing but the same will apply to many social housing tenants and owner occupiers. We accept also that not all landlords are perfect but the objective assessment is that the overwhelming majority of private sector tenants are satisfied with their accommodation and enjoy a good relationship with their landlord.

“It is vital that tenant groups properly reflect this, rather than stoking fears that tenants are about to be evicted for no apparent reason, live in substandard accommodation and are charged exorbitant rents. This is simply not true and it is irresponsible to suggest so.

“We do all we can to support landlords to provide high standard, secure and affordable tenancies and we call on tenant organisations to work with us to help achieve this and root out the bad landlords that none of us wishes to see in the market.”

Expectations for changes to the private rental sector in 2020

Published On: January 3, 2020 at 10:28 am

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changes to the private rental sector in 2020

As we enter a new year (and a new decade!), specialist landlord insurance provider Just Landlords has collated a list of the biggest changes it expects to see for the private rental sector (PRS).

Here’s a summary of what is likely to be just around the corner for landlords, letting agents and tenants:

  1. Section 21 – Abolishing this as an option for landlords looking to evict their tenants will mean big reforms to the Housing Act.
  2. EPC law – As of 1st April, landlords will need to ensure the properties of all private tenancy lets have an Energy Performance Certificate rating of E or higher.
  3. Grenfell Tower – All building types are under scrutiny, including those in the PRS, to make sure we’re doing all we can to avoid such a devastating event happening again.
  4. Rent controls – There has been a mixed reaction to this suggestion, so we’ll see if it comes up again in 2020.
  5. Mandatory three-year tenancies – The initial proposal was not well-received, but will we hear more on the matter? It has to be said that some would benefit from the option of a three-year contract.
  6. Rogue landlord database – Will tenants and prospective tenants finally be able to access this database to help avoid falling victim to rogue landlords?
  7. Landlord taxes – Already an issue driving many from the market, will our current Conservative government lessen the burden or increase it?
  8. Brexit – Are you as fed up with this portmanteau as we are? We’re Brired of Brearing about it… The official deadline is 31st January, so 2020 will be the first year we feel the effects of whatever decision is made.
  9.  Lifetime Rental Deposits – This one could really make a difference to the ease of renting for all involved. We hope the Government turns its attention to this sooner rather than later!

Em Morley, spokesperson for Just Landlords, comments: “We say these are our expectations, rather than predictions, as this is the least we’re expecting from the Government and local authorities.

“Progress is vital for the sector, as it’s about more than the businesses of landlords and letting agents. It’s also about the supply of safe, comfortable and affordable housing needed in the UK.”

Read Just Landlords’ full article on their blog.