Comment: July 2023

Legislation is changing.

Paul Ruocco, Managing Director of Home Minders takes a closer look:

There’s no doubt that the proposed and long-anticipated Renters Reform Bill will significantly change the relationship between landlords and tenants. There has been a great deal of speculation that removing a key tool for landlords to obtain vacant possession and the scrapping of fixed term tenancies will put pressure on landlords, but with a year in hand before the bill is likely to become law and with its overall aim of improving standards across the private rental market, there is no need for alarm according to Paul Ruocco, Managing Director of the Home Minders Group. Indeed as he explains “all the proposals are up for discussion before they become law and we have a team of experts who will ensure that you remain compliant with the legislation as it changes and give you the support you need".

Whilst the bill contains the removal of Section 21 evictions, widely used by landlords to remove troublesome tenants, it also puts in place more efficient and effective mechanisms for obtaining vacant possession which is to be welcomed. Landlords will still be able to regain possession where there are serious or repeat rent arrears, serious anti-social behaviour or the landlord wishes to sell or move back into the property.

"However, I do think that the abolition of the Section 21 notice will not be great news for landlords in the long run. We need to remember that landlords do not just issue section 21 notices for the sake of it. If there is a good tenant who looks after the property and pays the rent on time, why would a landlord issue a notice unless they need to sell or move in themselves, which they will still be able to do.

"Tenants may be concerned about the end of fixed term tenancies, however the blanket ban on letting to those on benefits, the ‘decent homes standard’, along with proposals to make it easier for tenants to have pets and a compulsory ombudsman scheme are all billed as measures to make renting easier for tenants. I believe that overall, the changes proposed will deter some landlords from entering the private rental sector, but should help to root out rogue landlords. We will need to wait and see how much of the Bill survives its journey through Parliament, but we will keep our landlords informed of every development.

"As I said in my last newsletter the lettings market remains robust with demand continuing to outstrip supply creating higher rents and longer tenancy agreements. The average asking rent in London hit a record of £2,501 a month earlier this year.

"However, I do think that as the year progresses, we will begin to see a slowdown in rental increases as stretched affordability combined with localised increases in supply and slower jobs growth take effect. On the sales side property prices remain firm across the Capital and yet again are due to see the highest price increases in the country over the year at 5.5%".