A glance through the Conservative manifesto reveals the plans Prime Minister Boris Johnson and his new government have in store for landlords.
Near the top of the list is banning Section 21 no fault evictions.
The process lets a landlord in England or Wales regain possession of a property without giving a reason, providing at least two months’ notice is given.
Instead, landlords must give one of several specific conditions to evict a tenant. These would cover several reasons, like a breach of tenancy by the renter or a wish for the landlord to sell the home
The idea is like a process already running in Scotland.
Another policy idea is the lifetime deposit or tenant passporting, which will stop tenants having to tie up hundreds of pounds when leaving a property while getting the money to put down as a deposit on a new home.
The policy is scant on detail, but suggests a single, portable amount of money that follows a tenant from home to home.
Other reforms already in the pipeline include:
- Energy efficiency rules that stop the letting of homes with an Energy Performance Certificate rating of F or G from April
- The final phase of rules limiting claims for tax relief on mortgage interest payments for higher rate taxpayers. Instead of claiming at their marginal rate of 40% or 45%, all landlords will receive a 20% tax credit on loan interest payments
- Private Residence Relief is changing – and the measure is likely to increase capital gains tax bills. Landlords can claim an 18 month CGT exempt period when selling a property they have lived in as their home, but this reduces to nine months from April.
At the same time, landlords cannot claim lettings relief unless they have a shared their home with a tenant. Lettings relief offers landlords a tax break of up to £40,000 on the sale of a former home rented out to tenants.
The Tories are also blowing hot and cold on rent controls. Secretary of State for Housing Robert Jenrick has announced both rent controls are not on his agenda and that he might consider a scaled down version of the controversial measure in recent weeks.
I do not agree with the banning of the Section 21 notice.
I think given the choice we would all disagree with the banning of Section 21 notice
The industry is already heavily regulated with thousands of pieces of law governing what landlords and tenants can and cannot do. If politicians want to improve the sector here is what the next government should focus on:
Enforcement of existing law – such as more resources for Trading Standards and Environmental Health Compliance teams
Better resourced courts – to expedite existing court process
Build more housing of all tenures so that people do not have to move as often and have more choice – we are creating households at a faster rate than housing at prices people cannot afford to buy
I agree that this is a ludicrous idea for a change in the law, and will ultimately have a larger impact on landlords and property to rent than all the negative tax changes.
Its a bit like telling the banks that they cant ask for any of their loans to end, until the borrowers want to end them, providing they continue paying the interest owed.
I run HMO’s, how am I meant to get rid of the unsociable people who upset all the other tenants, and cause them to leave? Tenant, “John from room A is defecating in the kitchen sink again”, Landlord – “Sorry, nothing can do, his rent is up to date”!”…
I have a few guaranteed rent schemes with local councils, I ask them how they will be affected. I stunned by reply, they don’t use ASTs, all their tenants are on licenses…
Happy xmas