Levelling up and private landlords

The Government White Paper sets out some ambitious aims. Whilst much of the section on housing focuses on increasing home ownership, there are a couple of key points which will be of interest to current and prospective landlords.

Industry reactions to the White Paper has been mainly positive, even they include a number of ifs, buts and howevers. The main points covering the private rental sector -

Eviction powers

Section 21 'no fault' evictions, where landlords can evict tenants for any reason, will come to an end. Consultations are proposed to find a more equitable framework which provides tenants with greater security and for landlords to be able to give notice where there is good reason.

Rental homes fit for purpose

Social housing has operated under the Decent Homes Standard for over a decade, however, no equivalent exists for the private rental sector. 

Whilst short on detail, the White Paper makes it clear that that the number of substandard homes is unacceptable and targets a 50% reduction by 2030. Government figures suggest that some 16% of homes will need to be upgraded to meet the new standards. 

National Landlord Register

The government will consult on introducing a register of landlords together with plans to make life difficult for rogue landlords. Repeat offenders will face fines and risk being banned from letting their properties.

All tenants would gain right of redress where complaints about their homes are upheld.

Continuing supply/demand imbalance

Several years ago a House of Lords committee concluded that the UK needs to build 300,000 new homes each year to keep up with demand. Every year since then there has been a large shortfall. Current estimates are that the figure has now risen to 340,000 a year.

There is little in the White Paper to suggest that supply can be increased to come close to meeting this level of demand.

Observations

A more balanced relationship between tenants and landlords may encourage longer term investors who value good quality tenants.

Whether a register of landlords is likely to be effective is open to question. What is key is enforcement. Local authorities have long had the ability to crack down on rogue operators, but very few have ever served enforcement notices. They will need much more in funding and resources to make a real difference.

Pcom has always promoted high quality properties supported by specialist third party management. ​Moves towards making the private rental sector more professional should be welcomed.