Rent reform bill

R200

It looks like ending section 21 will go through quite quickly 

will this mean even more LLs will try to sell
up before the cap gains go up in the next budget?

_Penny_Dreadful

R200 said:

It looks like ending section 21 will go through quite quickly 

will this mean even more LLs will try to sell
up before the cap gains go up in the next budget?

It’s the “Renters’ Rights Bill,” not the “Renters Reform Bill.”  The former has been introduced by the current Labour government and the latter by the previous Conservative government but it didn’t get through before they were ousted. 

The bill only had its first reading in parliament yesterday. It still requires a second reading, committee stage, report stage (in both houses), third reading and then both houses have to agree on the wording. Once that’s all done the bill has to be given Royal Assent to actually become the law. 

https://bills.parliament.uk/bills/3764

R200

Whilst the Renters' Rights Bill could have been worse (there are no formal rent controls or a hardship test for evictions, for), I suspect many will now long for the balmier climes of Gove's Renters (Reform) Bill. 

Murphybear

I thought I’d have a look at the Renters Rights Bill but gave up when I saw it was 226 pages.  There are some good points such as not being allowed to refuse tenants because they are on benefits or have children.  However if they lean too far on the side of the tenant then I think we all know what will happen.  

I think this (or any) government has a difficult job.  They need to give tenants rights so they have security but they need to make renting attractive enough for landlords so they won’t all want to sell and then there will be enough properties available.  

gazfocus

Apart from the ending of section 21, the only other thing that really concerns me (as a landlord) is the requirement to fix mould issues within 14 days. 

Don’t get me wrong, I fully get the importance of dealing with mould as it can be extremely dangerous, but 14 days isn’t a reasonable time limit. 

Now, I’ve only ever had mould issues once and we had to have a stud wall completely removed and rebuilt and were fortunate enough to get it done quickly. However, if it had been damp that had penetrated bricks, or even worse, getting something like that fixed within 14 days is going to be a tough ask in my view. 

However, to answer your question…yes, I think there will be a mass exodus of rental properties. The prospect of more fines/penalties, stricter requirements, making it more difficult to get tenants out, and then the capital gains tax going up, I think many landlords will try and beat the capital gains tax increases and sell up. 

All that will do is make it even harder for people to rent, and that will result in rents going up even further. 

Herzlos

I'm assuming it'll be sufficient to start working on it within 14 days, not finishing work on it. But then maybe that's too sensible.

gazfocus

Herzlos said:

I'm assuming it'll be sufficient to start working on it within 14 days, not finishing work on it. But then maybe that's too sensible.

Even then though, in some areas, getting builders to start within 2 weeks is going to be difficult unless you’re a) happy with cowboys doing the work or b) willing to pay through the nose to jump the queue. A good builder is typically booked up weeks/months in advance. 

Sea_Shell

What about those mould issues that are caused (or made worse) by the tenants actions.

Drying lots of washing indoors, showering, cooking etc without adequate heating and/or ventilation.

Who will be the arbiter of the cause of any mould?

R200

gazfocus said:

Apart from the ending of section 21, the only other thing that really concerns me (as a landlord) is the requirement to fix mould issues within 14 days. 

Don’t get me wrong, I fully get the importance of dealing with mould as it can be extremely dangerous, but 14 days isn’t a reasonable time limit. 

Now, I’ve only ever had mould issues once and we had to have a stud wall completely removed and rebuilt and were fortunate enough to get it done quickly. However, if it had been damp that had penetrated bricks, or even worse, getting something like that fixed within 14 days is going to be a tough ask in my view. 

However, to answer your question…yes, I think there will be a mass exodus of rental properties. The prospect of more fines/penalties, stricter requirements, making it more difficult to get tenants out, and then the capital gains tax going up, I think many landlords will try and beat the capital gains tax increases and sell up. 

All that will do is make it even harder for people to rent, and that will result in rents going up even further. 

Does pest control have to be fixed with 14 days?

eddddy

Sea_Shell said:

Who will be the arbiter of the cause of any mould?

FWIW, I was talking to a LL recently who was reported to the council by a tenant due to mould. The council sent the LL a very aggressive letter.

The LL's (truthful) response to the council was that, once the tenant reported the mould to the LL, the LL had already done the following:

• Arranged for a surveyor to investigate (The LL gave the council a copy of the report)
• Arranged a specialist cleaning company to clean off the mould
• Advised the tenant verbally and in writing about steps to reduce humidity in the flat

The surveyor asked the tenants lots of questions and included in his report that:

• The tenant was regularly drying clothes in the flat
• The tenant wasn't opening windows
• The tenant wasn't heating the flat sufficiently
• There was a water leak which the tenant hadn't reported

Once the council had the LL's response, their attitude towards the LL completely changed.


But I guess one issue here is that the mould was probably the tenant's fault, but the LL had to spend money on a survey and cleaning as a result of the tenant's wrongdoing.




Edit to add...

In this case, the LL doesn't plan to charge the tenant for this, but maybe that's an area to investigate.

But perhaps that introduces another potential problem. The LL says to the tenant - "if you're planning to report me, I'll have to get a surveyor in etc, and if the surveyor says it's your fault, I'll charge you their £500 fee".

That might scare tenants into not reporting.

R200

I don’t think it matters who caused it. The LL has to sort it out.

if the LL tries to say the pest problems or the mould is due to the tenant and that’s why he doesn’t think it’s fair that he pays to sort it out then he will get a fine.

its like if you stay at a hotel and the maid says I’m not cleaning that room the guests were the ones who made that mess