Letting agents slam Government over ‘risky’ renting reform plans
Detail report from TLIC outlines the danger of banning Section 21 evictions AND fixed-term tenancies in one go, among other things.
A lettings industry group has called on the Government to think again before it bans Section 21 evictions and abolishes fixed-term tenancies, warning doing both will negatively impact shared households, lead to significant job losses in the sector and prejudice applicants who require a guarantor.
In a detailed but blunt report, The Lettings Industry Council (TLIC) says that if Section 21 must be abolished, fixed-term tenancies should remain to help offset the unintended consequences, while still giving tenants more security.
The report comes at a time when many in England and particularly Scotland are becoming alarmed at the rate at which landlords are selling up and their properties are not being replaced within the PRS.
TLIC says approximately two-thirds of all rented homes sold by landlords are returning to the general housing market “which is having a devastating financial impact on tenants who are seeing rents increase to record levels”, it says.
U-turn
The trade body also notes that the Welsh Government had planned to abolish fixed-term tenancies, only to later U-turn.
TLIC’s report also calls for improvements to the court system including accelerated claims issued online, reducing the listing of PRS claims to no later than four weeks, automatically transferring rent arrears cases with more than six months arrears up to the High Court, approval of an affordability assessment when making a Possession Order, and abandonment cases to be determined without recourse to the court.
Theresa Wallace, Chair of TLIC, says: “It is vital to maintain the supply of desperately needed properties to rent, to prevent a further rise in homelessness and living costs which will inevitably affect the most vulnerable tenants on the lowest incomes.
Evictions expert Paul Shamplina of Landlord Action, who has helped TLIC draw up the report, adds: “Landlords need to have quick and simple routes for gaining possession of their property, and the courts need to improve to facilitate this.
“In addition, without bailiff reform, enforcement will be even more challenging. We believe the suggestions in this report help strike a better balance between the need to give tenants more security and offering landlords greater confidence in the system.”
