Alex & Matteo | London’s New Renter’s Reform Bill
The Bermondsey and Rotherhithe areas of London are buzzing about the new Renter‘s Reform Bill. Many have embraced the reform, some haven’t, while others aren’t sure. So what’s the buzz about? Let’s take a look at both sides and let you decide!
First, let’s look at the bill and what it says and does.
The New Renter’s Reform Bill Highlights
The bill is an extension of the government’s intention to improve the quality of rental housing while working to ease some of the cost of living pressures renters face.
-The Bill works to improve conditions and rights for millions of people in the private and social rented sectors, making it the most significant change to renters’ law in a generation.
-The Act hopes to improve housing quality for private renters, extending the Decent Homes Standard for the first time and giving all renters legal protection against substandard housing.
-Section 21 “no-fault” evictions are banned to protect the almost 25% of tenants who were evicted for no reason. This section of the bill is meant to safeguard renters from fraudulent landlords.
-The bill does provide landlords with stronger legal grounds for reclaiming their property due to tenants’ failure to pay rent or when they engage in behavior that lowers the property or neighborhood value.
-The government also outlines new rules for social renters, with regular rigorous inspections and stronger powers to initiate corrective action against landlords that fail to meet new standards.
Now that we know what’s in it, let’s take a look at what Bermondsey and Rotherhithe residents, landlords, tenants, and property industry professionals think of the changes.
Those In Favor of the New Renter’s Reform Bill
-The Bill gives renters more security. They can’t be evicted without a good reason and they have the right to a safe, warm home. This means they can put down roots and contribute to the local community and economy without fear of being evicted for no reason.
-It will improve the quality of rental properties overall as landlords will now have to improve and maintain their properties to quality standards. This will improve the health and safety of properties for renters.
-Social renters will especially benefit from the new rules and powers given to inspectors. The level of tenant protection and transparency of landlord performance will increase. Thereby increasing the quality of the social housing sector.
Those Not In Favor of the New Renter’s Reform Bill
-The abolishment of Section 21 “no-fault” evictions will not reduce the number of evictions. It will only change the process by which landlords evict tenants.
-The view from the National Association of Property Buyers (NAPB) is that the reform could increase rents and put undue burdens on landlords who will have to prove that they need the property vacated through eviction.
Jonathan Rolande, spokesman for the NAPB argues, “landlords will have to rely upon Section 8’s, the court route or demonstrate they need to sell the property hence needing it empty.” He adds, “If landlords sell up by the thousands, as is already happening, there can only be two outcomes. We will see fewer properties to rent, driving up rents. Additionally, the smaller ‘mum and dad’ landlords will sell up and corporations will take over. After that, more than ever, the property and its occupiers will be a commodity, run with ruthless efficiency.”
We Shall Wait and See
Change is hard and we are all creatures of habit. It is hard to predict what may come. We can make educated guesses. Yet, each tenant and landlord’s situation is different so each could be impacted positively or negatively. For now, we hope to provide the information and perspectives from both sides so you can make an educated decision.
As always, if you want to know more about buying, selling, or investing in London, Alex and Matteo are your Bermondsey Rotherhithe property experts!