The latest Queen’s Speech has reconfirmed that legislation will be introduced to strengthen the rights of tenants under the Renters’ Reform Bill. Delivered on May 10th, the speech had multiple implications for landlords, including the abolishment of Section 21, new social housing regulations and a commitment to reshape the private rental sector in England…
Queen’s speech 2022: The abolishment of Section 21
The key takeaway from the Queen’s speech in relation to the rental market was the long-awaited announcement that Section 21 evictions will finally be scrapped. Landlords’ grounds for possession will also be reformed. It seems likely that the impact will attempt to be balanced by introducing arbitration and improving Section 8 grounds.
What this means for you as a landlord, however, is that once actioned; you will be legally required to provide your tenants with a reason for terminating a tenancy. The effect this decision will have on the rental market remains to yet to be seen.
With Section 21 evictions having commonly been cited as a cause of homelessness by charities such as Shelter, the claims made in relation to the frequency of this having happened have been dismissed by The NRLA and others as having been grossly exaggerated.
Reflecting upon the upcoming changes, Jon Reynolds, regional lettings partner for North, City & East London, Knight Frank made the following comment:
“The big question for me is how they do this. If it is done in the right way, we would welcome the changes. But you could also have fewer properties coming to market and less choice for tenants. I welcome the extra protections for tenants as it is already a challenging and competitive market at the moment for them, but reforms need to be well thought-through and introduced. Otherwise, it could be another factor that puts off landlords renting their property out, causing market supply to tighten further. If landlords want to sell in six to 12 months’ time, knowing the court process will be different going forward, it might put them off. It could also deter new investors from the market”.
Queen’s speech 2022: Additional items on the agenda
- Increased power given to councils to crackdown on bad practice
- The launch of a property portal to help landlords understand their obligations (which tenants will also be able to use to obtain performance information on their landlord)
- New regulation of social housing
- A new planning system and housing reform
- The proposal of an Ombudsman to reduce the number of possession cases going to court
- The extension of the Decent Homes Standard to the PRS
For more information, visit gov.uk.
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