Landlords’ Ultimatum: Save Renters Reform Bill or Face Losing Homes! Peers Urged to Take Action
The House of Lords will begin debating the Renters Reform Bill on Wednesday after MPs voted through a watered-down version of the government’s flagship legislation.Landlords have been accused of “holding parliament hostage” with the threat of selling up to stop tenants’ rights from being strengthened.Save Renters Reform Bill or Face Losing Homes! Peers Urged to Take Action
A fresh row erupted on the eve of the controversial Renters Reform Bill coming to the House of Lords for its second reading, as one landlord group warned of a supply crisis in the private sector.
An analysis of government data by the National Residential Landlords Association (NRLA) found that in the last six months of 2023, 45% of people in need of homeless prevention support said the reason was because the property owner planned to sell.
This was more than twice as much as the next most common reason, with landlords planning to re-let the property.
Separately, data from Rightmove found that 50,000 rental properties are needed to bring the supply of rental homes back to pre-pandemic levels.
Confidence to stay in the market
The NRLA said landlords needed “confidence to stay in the market” and warned peers against attempting to strengthen the reform bill to give renters more rights after it was watered down by MPs in the Commons.
They said the data comes in the wake of concerns raised by the campaign group Generation Rent, which has warned that landlords selling up is a leading cause of homelessness.
But Generation Rent accused the NRLA of “cynically” using their concerns “to hold parliament hostage to the idea that they will sell up over even the smallest strengthening of tenants’ rights.”
Bricks and mortar do not sink into the ground. The home could be bought by another landlord, a first-time buyer, or repurposed for social housing.
Some landlords may choose to sell for various reasons. For instance, they might be retiring or facing high mortgage costs.
Relocation relief required for renters
Mr. Twomey stated that tenants face a significant problem when landlords decide to sell: a lack of protection for the short term.
He called on ministers to incentivize home sales to existing tenants if they can afford to buy. Alternatively, ministers were encouraged to incentivize home sales to sitting tenants when a new landlord took ownership.
The campaign group also wants landlords to be tenants, preventing the sale of a property for two years after it began. Renters who are evicted through no fault of their own are eligible for relocation relief. This relief means they are exempt from paying the final two months’ rent. They do not have to pay rent for the last two months while searching for a new home.
Why are landlords selling up?
The NRLA stated that landlords are selling for multiple reasons. The primary concerns are rising costs and ambiguity regarding the Renters Reform bill.
The legislation, intended to redress the power balance between renters and landlords, has been delayed and met with controversy. The government has faced heavy criticism for diluting some of its flagship proposals, such as the ban on no-fault evictions.
Five years ago, the Conservatives pledged to institute a ban.The ban has not yet taken effect. Court reforms under consideration are causing a hold-up.
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Peers urged to ‘rescue’ reform bill
The Generation Rent legislation, a part of the Renters Reform Coalition, is under pressure to salvage the proposed bill’s reputation, as detractors argue it lacks impact. This imbalance is the root of the crisis in English renting.
The RCC is advocating for a package of reforms. These reforms include ending no-fault evictions. They also include giving tenants four months’ notice before eviction instead of two. Additionally, the reforms aim to limit in-tenancy rent increases in accordance with inflation or wage growth.
Renters are dealing with insecure tenancies. Additionally, they face soaring rents and poor conditions during a wider housing crisis. At the core of this crisis is the problem of insufficient housing supply and spiralling affordability.Ben Beadle, Chief Executive of the National Residential Landlords Association, acknowledged the wider problem. He stated that all parties need to accept widespread calls for policies to boost supply in the private rental sector.
He added: “Landlords selling up is the single biggest challenge renters face. The only answer is to ensure responsible landlords have the confidence to stay in the market and sustain tenancies.
“As peers debate the Renters” Reform Bill, it is vital that it works for landlords as well as tenants. As it stands, it would achieve this balance. We are calling on our peers to support the Bill to give the sector certainty about the future.”