New survey shows landlord fears over Section 21

Another survey reflects the growing concerns among landlords over the abolition of Section 21 eviction powers.

The study, by lender Landbay, suggests that no fewer than 75.4% of landlords are very concerned about plans to scrap Section 21, arguing that the ability to expel bad tenants was ‘vital’.

Rob Stanton, sales and distribution director at Landbay, says: “Rent reform has long been on Labour’s radar and formed a key part of its election manifesto. We knew this would be a priority for the new government and it looks like it plans to move quickly. Nonetheless, our research shows that landlords have significant concerns about the new Bill, particularly around ‘no fault’ evictions.

“While no decent landlord will object to tenants being treated fairly, they argue that the property owner deserves the same rights. We have to hope that, as the Bill starts its long journey through parliament and the House of Lords, amendments are made to create a fairer piece of legislation that doesn’t negatively impact supply or rent for tenants.

“It’s important to remind landlords that the buy-to-let sector and the private rental sector is no stranger to new legislation. Add in changes of government and economic crises, the sector continues to thrive. 

“Above all, lenders such as Landbay remain active in the market, working with brokers to support landlords of all sizes and requirements. No matter how the new Bill comes out in the wash, this will not change.”

In outline, the Bill as it currently stands, includes these measures: 

• Abolition of Section 21 eviction powers;

• Tenants will be in a stronger position to challenge unreasonable rent increases supported by a Tribunal and landlords will only be allowed to raise the rent once a year and only to the market rate;

• Tenants will get a quicker resolution over disputes, cutting down on the need to go though the courts through a new Ombudsman service;

• A new database for landlords to share important information on their property standards, showing their compliance with the law and helping councils drive out the minority of criminal landlords;

• Tenants will be able request to have a pet and landlords will not be able to unreasonably refuse;

• Local councils will be given stronger powers to crack down on unscrupulous landlords, with maximum fines increased to up to £40,000 for serious offenders.

This article is taken from Landlord Today