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TODAY'S OTHER NEWS

New bill will make it harder ‘for landlords to reclaim possession of their property’

A new bill that could potentially make it harder for landlords to evict problem tenants swiftly and efficiently due to current court procedures was introduced into the Welsh National Assembly yesterday. 

The Renting Homes (Amendment) (Wales) Bill was introduced by Julie James AM, Minister for Housing and Local Government, which proposes changes to the Renting Homes (Wales) Act 2016.

The bill proposes changes to the act before it is introduced in order to provide greater protection for those who ret property in Wales by making it harder for landlords to evict tenants, especially in the private rented sector.

 

The Business Committee has remitted the bill, which is currently at stage one and will be considered until March, to the Equality, Local Government and Communities Committee.

More details about the bill can be found in its accompanying Explanatory Memorandum

David Cox, chief executive, ARLA Propertymark, commented: “Extending notice periods from two months to six months under the Renting Homes (Amendment) (Wales) Bill will cause further shockwaves for landlords and agents. 

“The proposals will make it even more difficult for landlords to reclaim possession of their property and add further longevity to an already lengthy and expensive eviction process.

“We are concerned that landlords will have no viable option of evicting problem tenants quickly and efficiently due to current court procedures. If landlords sell up due to the perceived risk, this will shrink the sector and contribute to landlords being more selective about who they let their property to. 

“The Welsh Assembly must reconsider extending the minimum notice period and take a long-term, holistic view that supports those who are providing professional and well managed tenancies.”

Poll: Do you own property in Wales?

PLACE YOUR VOTE BELOW

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    Anonther positive step towards increasing homelessness in the rented sector.

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    Welsh rents will soar like they have done in Scotland after fixed term leases were abolished by the SNP in December 2017, who also build unfit for purpose hospitals, bridges,ferries and poorly performing schools whilst clamouring for independence which would leave us with a £13 billions annual budget deficit!

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    No they won't soar as it is an affordability factor here in Wales.
    You can't ask what the tenant is unable to pay.
    Despite house prices rising considerably in my part of Wales, rents have pretty much remained static for the last 20 years.

     
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    • 12 February 2020 12:53 PM

    Only cash only LL could afford to risk AST tenants.
    All they would lose is the rental income for about 1 year.
    A mortgaged LL could face bankruptcy.
    BTL mortgages are usually serviced by rental income.

    Without it the BTL business proposition fails UNLESS RGI can be achieved.
    Very few tenants are able to qualify for RGI.
    No sane LL will risk potential bankruptcy on one scummy rent defaulting tenant.
    Such LL will just get out of AST lettings or sell up.
    There seems to be an idea amongst the PTB that LL will stay in the market come what may.
    One only has to see what happened in the Irish PRS.
    LL exited the sector.
    Homelessness and rents massively increasing there and has ultimately caused the ruling Govt to lose power.
    Perhaps the PTB might reconsider their attacks on private LL!?
    Mortgaged Welsh LL will be seriously considering their position.
    There is no way I would even consider investing in Welsh property if choosing the AST business model UNLESS I could afford to buy for cash.
    It looks like England remains the only viable place to invest.
    Scotland and Wales are now no longer viable for AST lettings.
    Mind you England looks like going the same way unless there is a viable S8 eviction process.
    If I was starting out again there is no way I would invest in any property unless I could be certain of a supply of tenants who could qualify for RGI.

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    • S S
    • 12 February 2020 13:58 PM

    The only tenants that will be able to find properties in Wales will be students! They are the only tenants who are more or less guaranteed to move on! But even then there's always a risk, they perhaps have nothing to lose by staying.

  • Matthew Payne

    I wonder how lenders will feel about the increased risk. LTVs will drop I imagine to build in more comfort.

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    • 12 February 2020 16:35 PM

    That's a damn good point.
    It surely CANNOT have escaped the lenders' attention that the reason they risked BTL lending was precisely because of the AST and S21; S8 process.
    With these all being effectively removed the risk profile for most LL will surely result in as you suggest far lower LTV being accepted.
    I therefore expect 50% to become the maximum BTL LTV.
    That way the lender is definitely protected in the event of mortgage default if the LL ends up with a wrongun.
    Such pragmatic lender requirements will surely result in far fewer LL and far fewer rental properties being retained or brought to market.
    Of course it will de facto force many LL to become far more resilient which perhaps is no bad thing!
    Of course not good for tenants who need more rental supply.
    But restricting LTV will just mean far harder times for tenants.

     
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    It will definitely mean being more selective, to the point of being actually paranoid about choosing the correct tenant.
    They will in future have to fulfil a much more rigorous criteria, if I am even going to consider them.
    That is why I am deciding to sell a property a year and invest in something else.

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    • 14 February 2020 15:22 PM

    I share your sentiments exactly.
    Only difference is my capital will return to a savings account where it will remain socially useless!
    I wont invest in anything else and am prepared to accept value is eroded by inflation.
    Far less than any losses a rent defaulting tenant could cause!!


    So that will be about £250000 which previously supported about 16 occupants being no longer available.
    It will be highly doubtful that properties will ve available for AST lettings.
    Many in my block have dispensed with AST lettings and are doing very nicely with AirBnB etc.
    So a total loss of available rental stock as far as any prospective or existing tenant is concerned!

    In light of the existing dysfunctional and soon to ve even more dysfunctional eviction process being a paranoid LL should be considered a normal state if affairs fir a LL to be in!!
    With a wrongun tenant a LL could be financially and potentially domestically destroyed!
    Not a business risk I am prepared to tolerate so like you I'm getting out of the AST game.
    The business model is dysfunctional now and will be even more so in the future.
    Many AST LL are coming to the sane conclusions as you and I.
    Paranoia seems to me to be perfectly justified for a LL!

     
  • icon

    The only answer to all this is mandatory guarantors on tenancies. Trust me when tenant starts playing silly b***ers saying they don’t have to go anywhere. A call to guarantor telling them you will sue them for losses works wonders. They then tell the tenant in ways we long to do

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    Yes I think this is the way forward, unless a new tenant is gold plated then a home owing guarantor is a must, without this no tenancy, we need to stick together here because if we do councils and government are going to have such a problem with the homeless they will have to come and talk sense with us, we can win here.

     
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