Major estate agency slams Government’s ‘periodic tenancies’ plans

Leaders Romans Group (LRG) is continuing its push back against the Renters (Reform) Bill ahead of its expected second reading in the House of Commons later today citing its main concerns over ‘tenancy length’.

The Renters (Reform) Bill proposes to simplify existing tenancy structures by moving all assured shorthold tenancies (ASTs) to a single system of periodic tenancies.

REDUCE FLEXIBILITY

But LRG says that this will reduce flexibility and the opportunity for a landlord and tenant to agree a mutually beneficial contract.

The Neg reported last month how Michael Cook (main picture), Group Managing Director of LRG, has already written to MPs to voice his concerns.

He says: “The average time that a tenant remains in a rented home is four years and assured shorthold tenancies (typically of six or 12 months, but often more) are currently the standard rental agreement.

“After the specified time has elapsed, a decision is made to either renew the contract or switch to a periodic tenancy. But the Renters Reform Bill proposes that all rental properties will be under a periodic tenancy –rolling on a monthly basis.”

LESS SECURITY

Cook argues that any tenants currently opt for fixed term tenancies – some of as much as two years – but under the proposed changes a landlord may now ask the tenant to leave with just two months’ notice on the basis that they wish to sell the property. This, he says, creates less, not more, security for tenants.

He adds: “Tenants with children in local schools frequently choose the certainty that ASTs bring. But with the proposed changes it would be impossible to provide that certainty.”

Cook also believes that a further shortcoming of the Bill is the proposed removal of Section 21 ‘no fault evictions’; instead landlords may only end tenancies through Section 8 of the Housing Act 1988.

APPLY SECTION 8

The legislation proposes new grounds by which landlords can apply Section 8 to a tenancy: that they may do so if they wish to sell a property, or if they wish to allow their family members to move into it.

But Cook says: “This would apply after a tenant has been in a property for six months and could then be applied with just two months’ notice – contributing significantly to a lack of security for the tenant.

The vast majority of landlords don’t evict tenants on a whim.”

“It is not feasible, nor sensitive to the tenants’ circumstances. Section 8 notices usually involve cases going to court which is invariably intimidating, costly and subject to considerable delays. The vast majority of landlords don’t evict tenants on a whim.

“Section 21 notices are a straightforward way to bring a tenancy to an end when both the landlord and tenant agree, or when there’s another good reason for a landlord to evict their tenant. To end no-fault evictions through abolishing Section 21 is extreme, unnecessary, and damaging to landlords and tenants alike.”