Tough times ahead for landlords?
More than two in five landlords are not aware of the proposed Renters’ Reform Bill, a new study1 has claimed, despite the impact it will have on their portfolios. Should landlords be worried?
What could change?
The proposed legislation, which is set to be voted on before May 2023, includes many significant elements. If passed in full, the act will:
- Scrap section 21 ‘no fault’ evictions
- Create a register of landlords
- Introduce a private rented ombudsman to help enforce renters’ rights
- Make it illegal for landlords and agents to refuse to rent properties to people who receive benefits
- Give local authorities more power to enforce and protect renters’ rights.
What do landlords think?
The survey found that 47.55% of landlords are ‘Strongly Concerned’ or ‘Concerned’ about not being able to refuse to rent properties to people who receive benefits.
Similarly, landlords are worried about changes to section 21 evictions (45.45%), private rented ombudsman (43.86%), property registration (42.65%) and the right to request a pet in their house (41.45%).
Increased pressure to remain compliant will add to the pressures placed on landlords and could lead to some selling up, the study suggests.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments. Think carefully before securing other debts against your home.