Minister considering harsher eviction rules for landlords and agents
Housing Minister Matthew Pennycook is reportedly looking into French-style “hardship tests” before tenants can be evicted.
As well as banning no-fault eviction notices, Housing Minister Matthew Pennycook (pictured) is also considering adding a French-style ‘hardship test’ for tenants to the Renter’s Reform Bill.
It would mean if an eviction was likely to cause a tenant greater hardship, the courts would refuse a possession order.
Pennycock proposed the same amendment to the Conservative’s Renter’s Reform Bill. According to an article in the Telegraph, he is now open to the idea of including it in Labour’s version of the bill.
Prevent an eviction
When he proposed the amendment, Pennycock gave an idea of the kind of hardships that might prevent an eviction. These included: if a tenant had terminal cancer, would lose their job or if the eviction would result in them becoming homeless.
A similar system was introduced in France in 2008. Under its Right to Housing Act a tenant can appeal an eviction if they have no rehousing options.
The other proposed Labour amendments to the Renter’s Reform Bill were:
- Forcing landlords to offer their property for sale to the tenant before evicting them on the grounds of needing to sell.
- Making landlords wait for the first two years of a tenancy before being able to claim they are selling or moving in a family member rather than six months.
- Removing “persistent rent arrears” as grounds to evict tenants, i.e. those who fall into two months’ arrears at least three times.
The Conservative’s Bill ran out of time to become law before the election and was abandoned. Labour’s version is expected to begin its journey through the commons in the autumn.
So let’s look at this rationally….
Having to offer a sale property to the tenant first- who ISN’T doing that in the first place? If you can sell at market rate to your tenant AND get rental income until the day of completion why wouldn’t you. However, the reality is, most tenants won’t be in a position to buy the property they rent.
If the Conservatives had done as pledged and got the removal; of S21 & the RRB through pre-election, we wouldn’t be in this mess at all as Labour would have had to focus on ‘bigger wins’- especially in their first 90-100 days. Conservatives are just as much, if not considerably more to blame for the situation we face. Will ministers listen, downscale and appreciate the value & role Landlords play? Only time will tell.
Making Landlords wait 2 years before being able to sell/reoccupy- we knew S21s were going, we knew indefinite tenancies were coming- it is logical this is accompanied with protections such as this. 2 years, however, is a long time if interest rates spiral or tenants stop paying rent, etc. 2 years is fine if there are exceptions for proven financial distress and, as others comment above, allowing banks to re[possess if needed.
Removing persistent rent arrears is a shame- a handful of tenants know the 2 month arrears rules and play the game. The reality is, they are few and far between- this was a good step to address that behaviour. A disappointing move but far from disastrous.
Hmmm I bet the council of mortgage lenders will have a lots to say about this…..
Will the banks still want to lend to landlords if they can’t repossess?
If the banks can’t get their money back they will stop lending .
I’m encouraging ALL landlords to sell; We have 15 rentals gone this year already. The Labour party are worse than even their sceptics thought thought. Look at what they are doing as some above said, God help us!
So what would be the point in paying rent if you know you are not being evicted. I lost another rental property yesterday because the tenant moved out and the landlord instantly said I am selling it and he came and collected the keys. His comment was “this government and the last one seem to forget it is my money I just hope they have billions available to provide social houses because they are scaring landlords out of the market.”. He is correct buckle up its going to be a disastrous five years on the performance so far.
Who in their right mind would become a landlord if this draconian nonsense is made law?
Prediction: More landlords to sell up. Less supply. Mass immigration and our population crises to continue. Demand up. Rents to rise.
The Starmer government are accelerating the slide into the sand. God help us.