Resilience Amidst Reform Uncertainty
Spring has now fully sprung and the local rental market has so far held strong all year as far as rents are concerned. Tenant demand is as strong as ever with our Rightmove statistics for the month of March showing an average of 32 enquiries for every listing in Droitwich, Worcester and Malvern.
With this in mind, it demonstrates that regardless of proposed regulatory reform, there is still a very strong appetite for renting in the local area and landlords are playing a more vital role in the local market than ever before.
The Renters Reform Bill underwent another reading in the House of Commons on April 24th and has now progressed to the House of Lords, increasing the likelihood of final legislation passing before the next election.
Our regulators, ARLA Propertymark, have provided mixed feedback on the amendments, initially proposed by MP Jacob Young, which were deliberated in parliament as part of the policy adjustments. According to reports, approximately 200 amendments have been made the original bill. The primary modifications are outlined below:
ESTABLISHING AN INITIAL MINIMUM TENANCY
In effect this will create a default fixed-term of six months in all contracts, mirroring a standard break clause in many existing contracts.
The original version of the Bill would have allowed tenants to end a tenancy with two months’ notice at any point, which Propertymark has argued would lead to poor outcomes for both landlords and renters.
BROADENING STUDENT POSSESSION GROUNDS
A mandatory possession ground to allow landlords to evict students living together in an HMO has already been added to the Bill, but the UK Government will now ensure this applies to any property that is let to students as long as landlords write their intention to use the student possession ground into the tenancy agreement.
UNDERTAKE A REVIEW OF COUNCIL LICENSING SCHEMES
To prevent duplication with the introduction of the new Property Portal, the UK Government will conduct a review of selective licensing and licensing of HMOs to reduce burdens on landlords.
REVIEW COUNTY COURT POSSESSION PROCEEDINGS
The Lord Chancellor will be required to publish an assessment on barriers to possession and the readiness of the courts in advance of abolishing Section 21 for existing tenancies.
COMMITTING TO A REVIEW OF IMPLEMENTATION
The Secretary of State will be obliged to make sure an independent review of the new system is carried out and report to parliament on the effectiveness of new possession grounds and the impact of moving to periodic tenancies and abolishing fixed terms within 18 months of the measures being applied to existing tenancies. In addition, an annual parliamentary update on the state of the private rented sector – including data on the supply, size and location of properties – will be provided.
The full article can be found here:
https://www.propertymark.co.uk/resource/renters-reform-returing-to-parliament-in-a-storm-of-critisism.html?utm_campaign=14455542_Renters (Reform) Bill Update April 24&utm_medium=email&utm_source=dotmailer&dm_i=Z6K,8LTYU,5W98WS,ZO29C,1
More of this, along with; tax, insurance, mortgages, and other pertinent topics will be addressed at our upcoming seminar on Thursday May 2nd. This event is specifically tailored for landlords seeking to stay up to date on the latest market trends any related challenges they may be encountering.
You can reserve your free slot via the below link:
https://www.eventbrite.co.uk/e/nicol-co-landlord-event-tickets-866938836397?aff=oddtdtcreator
More on the renters reform bill can be found here: