Plans for a Great Repeal Bill to ditch “daft” property regulations has been unveiled by Reform UK, with the industry giving its reaction.

The party, which surged in the English council elections earlier this month, has told The Neg that it plans to ditch the Renters’ Rights Act if it got into Number 10 at the next General Election.

This is alongside other measures to “improve the private rental market and reduce costs for renters”, it says.

It described the Renters’ Right Act, which was introduced at the start of this month, as a “disaster” for tenants.

Industry reaction

Industry figures have given their reaction, saying a Reform Government would need to do more than such a simple legislative fix.

Jeremy Leaf, north London estate agent and a former RICS residential chairman, explains that the challenge is what will replace parts of the legislative changes, including section 21.

He says: “There was a general consensus across the political divide that Section 21 no-fault evictions had probably run their course.

“Many believed retaining that power gave landlords an unfair advantage over tenants and families who were entrenched in their communities, enabling landlords to kick them out when finding alternatives at relatively short notice is difficult.

Where the division occurred between the political parties was how to replace Section 21 and how under-resourced courts system would cope.”

“Where the division occurred between the political parties was how to replace Section 21 and how under-resourced courts system would cope. On the ground, we found that the latter in particular has persuaded landlords to sell.”

He went on to say: “The difficulty for Reform is how to find a balance between maintaining sufficient supply of property at affordable rents while maintaining attractive yields for landlords.”

Replacement investors

Leaf added: “Another often overlooked problem is that it is not just that landlords are leaving but there are not enough younger-breed investors coming in to replace them or expand existing portfolios.

“There is a bigger picture too in terms of to the impact on job and social mobility as well as on the broader economy of so many associated trades and businesses which have a vested interest in an active property market.”

Landlord bashing

Meanwhile, Mark Harris, chief executive of mortgage broker SPF Private Clients, points out that landlord-bashing did not begin with Labour.

He says: “Landlords have certainly been hit hard by various tax and regulatory changes and we can’t just blame a Labour Government for this.

“Phasing out the ability to offset mortgage interest against rental income and introducing a 3% Stamp Duty surcharge on the purchase of rental properties were measures introduced by George Osborne, so some may consider the Tories to have been as anti-landlord as other parties.”

He adds: “The Renters’ Rights Act adds another level of regulation and uncertainty for landlords, which has resulted in some leaving the sector.

“It has also led to an increase in the number of landlords buying properties via company structures, rather than in their own names, so in a sense is professionalising the sector.”

Mortgage interest deductions

He questions whether the legislation can be simply unwound if Reform were to win the next General Election.

However, he acknowledges that the promise to repeal the tax changes that stopped landlords deducting all mortgage interest might be welcomed by smaller-scale landlords.

“Although one wonders how many of those will be left by then,” he says, adding: “There is also no detail on how Reform will make up any shortfall that this policy might lead to.

“As ever, making investment decisions based on which Government may nor not be in power at a particular time is a risky strategy. Seeking professional independent advice that will see you through all manner of political and economic ups and downs is a far wiser approach.”

Labour’s Renters’ Rights Act has been a disaster for renters. It’s already driving landlords to sell up in droves.”

A Reform UK spokesperson told The Neg that ditching the Renters’ Right Act is being considering “alongside other measures to improve the private rental market and reduce costs for renters”.

The spokesperson added: “Labour’s Renters’ Rights Act has been a disaster for renters. It’s already driving landlords to sell up in droves, slashing rental supply and pushing up rental prices. All this Act has achieved is making renting more expensive and leaving ordinary people desperately hunting for homes that simply aren’t there.

“A Reform UK government would introduce the ‘Great Repeal Bill’ to ditch daft regulations such as the Renters’ Rights Act in order to drive growth and investment, as well as bring down bills and ease the cost of living for consumers.”