Rent reform bill

Kim_13

R200 said:

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

This. If the LL can demonstrate that an issue was caused by the tenant, then his option is to deduct from deposit and if insufficient, pursue through Small Claims for the difference once fixed. Which is one reason why an LL might not want to rent to tenants on benefits, since if they are on benefits then such a claim is likely to be throwing money down the drain as the tenants won’t have the means to pay. If you have the means to pay for any damages you cause, then you are more likely to take reasonable care of the LLs property as you know what the consequences will be if you don’t.

The LL might not be dealt with as harshly if it is obvious the tenant was at fault, but the repairs still need to be done as whether conditions meet the standard required or not is the only consideration. I know of a case where a boiler stopped working and the Gas Safe heating engineer called in to fix it found evidence of tampering. The boiler would still have been under warranty if not for the actions of the tenant invalidating it, but it was instead deemed beyond economical repair. LL therefore said you can find somewhere else and leave with no notice or pay for a replacement boiler. Tenant reported to the council who could have issued a Notice of Improvement (which would have prevented starting possession proceedings for 6 months) but instead told the LL they were advising them to fix or replace and if not done then they would issue a formal notice.

If a LL cannot decline to accept tenants on benefits, then those tenants need to be eligible for help as soon as a valid possession claim is made against them (arrears/damages/LL needing to sell or whatever is still allowed once S21 is abolished.) Not advising the tenant to stay put and requiring the LL to foot the bill for bailiffs on top of the legal fees they’ve already had to pay/out of pocket costs they’ve already had to swallow. 

Renting to those on benefits ought to be more secure - the rent keeps coming (if tenant uses their housing allowance for its intended purpose and that is set at a reasonable level/tenant doesn’t struggle to make up any shortfall) whereas someone could be made redundant, etc. But the increased likelihood of losing money (presumably the Renters Rights Bill is not going to indemnify the LL against being left out of pocket by the actions of a tenant they were forced to accept) and increased difficulty of getting the property back makes it not worth the risk. As others have said, more LLs will get out and it will be even harder to find somewhere to rent.  

I do wonder what will happen if a working professional and someone in receipt of benefits both want the same property. Will LL be accused of discriminating against the benefit claimant?

BungalowBel

We have sold our flat because of this upcoming bill (because I am sure that this is only the first step ) and also the probable hike on Capital Gains tax.  We are not going to be the only ones.

The sale completes in a couple of days, then it is no longer our problem.

RHemmings

BungalowBel said:

We have sold our flat because of this upcoming bill (because I am sure that this is only the first step ) and also the probable hike on Capital Gains tax.  We are not going to be the only ones.

The sale completes in a couple of days, then it is no longer our problem.

If you'll excuse me being nosy, did you sell to people who will live in the flat, another landlord who will continue renting it out, or? If a landlord, was it an individual 'BTL' style landlord, or some sort of company/organisation? 

ThorOdinson

Sea_Shell said:

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?

My advice is don't buy a badly designed property if you aren't willing to fix it e.g. adding humidity controlled vents.

ThorOdinson

BungalowBel said:

We have sold our flat because of this upcoming bill (because I am sure that this is only the first step ) and also the probable hike on Capital Gains tax.  We are not going to be the only ones.

The sale completes in a couple of days, then it is no longer our problem.

Hopefully that's right, there will be many landlords selling up. More property on the market means downward pressure on prices. The sooner you sell the better, probably.

ReadySteadyPop

ThorOdinson said:

BungalowBel said:

We have sold our flat because of this upcoming bill (because I am sure that this is only the first step ) and also the probable hike on Capital Gains tax.  We are not going to be the only ones.

The sale completes in a couple of days, then it is no longer our problem.

Hopefully that's right, there will be many landlords selling up. More property on the market means downward pressure on prices. The sooner you sell the better, probably.

Government in Wales seems to agree.

https://news.sky.com/story/council-tax-hike-on-second-homes-triggers-surge-in-sell-offs-and-mixed-emotions-13215310

"Despite the influx of listings, actual sales are at a record low."

Does this also apply to BTL?

ReadySteadyPop

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?

Next budget is October, not enough time to sell, who will be buying though it probably won`t be landlords?

Ksw3

This reminds me when my ex landlord comissioned a damp report. The surveyor came, said it was our fault for breathing in the flat. Too much moisture you see!

ThorOdinson

ReadySteadyPop said:

ThorOdinson said:

BungalowBel said:

We have sold our flat because of this upcoming bill (because I am sure that this is only the first step ) and also the probable hike on Capital Gains tax.  We are not going to be the only ones.

The sale completes in a couple of days, then it is no longer our problem.

Hopefully that's right, there will be many landlords selling up. More property on the market means downward pressure on prices. The sooner you sell the better, probably.

Government in Wales seems to agree.

https://news.sky.com/story/council-tax-hike-on-second-homes-triggers-surge-in-sell-offs-and-mixed-emotions-13215310

"Despite the influx of listings, actual sales are at a record low."

Does this also apply to BTL?

That's because everyone is waiting to see how far prices fall, and what happens with interest rates.

The government has signalled measures to lower house prices, and hopefully economic stability will bring lower interest rates, so it would not be advisable to buy now. The measures may not work of course, but it sounds like the stuff to deal with landlords certainly is.

Landlords: if you want to sell up, consider selling to your tenants at a favourable price. Being already in there, it will reduce costs and hassle, and eliminate most end-of-tenancy issues relating to the condition of the property. The sooner you do it, the less money you are likely to lose as prices fall.

Grumpy_chap

ReadySteadyPop said:

Government in Wales seems to agree.

AIUI, the Welsh Government has brought in a multiple of Council Tax charge for all properties that are second homes / holiday rentals.
This has prompted the increase in properties for sale.
Those properties were not a permanent residence for anybody, so their sale does effectively increase the availability of property for primary residence use.

I am not sure that the same metric will apply / work in the same way if BTLs are sold off by current owners.  The BTLs are occupied as permanent residence, so sale does not change the supply / demand equation in the same way.