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OTHER GUIDES & TIPS

Pro-tenant activists slam Labour’s rental reform plans

Labour’s manifesto commitment to empower renters to challenge unreasonable rent increases has been slammed because it “would leave millions trapped in unaffordable homes for decades to come.”

That’s the view of one part of the so-called Renters Reform Coalition of groups demanding wholesale shift of power in the private rental sector to tenants. 

The London Renters Union says Labour’s proposals appear to repackage ideas in the now-scrapped Renters Reform Bill which would enable renters to legally challenge only those increases above ‘market rates.’ 

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The Labour manifesto says: “Labour will legislate where the Conservatives have failed, overhauling the regulation of the private rented sector. We will immediately abolish Section 21 ‘no fault’ evictions, prevent private renters being exploited and discriminated against, empower them to challenge unreasonable rent increases, and take steps to decisively raise standards, including extending ‘Awaab’s Law’ to the private sector.”

The LRU says: “This would leave most renters unprotected from the inflation-busting rent hikes sweeping through our overheated rental sector. The UK rental market is out of control. Average rents are rising above both inflation and incomes, with this trend set to continue for years. Skyrocketing housing costs are fuelling a 49% rise in evictions and forcing a record number of children into temporary accommodation.”

Siobhan Donnachie, a spokesperson for the London Renters Union, says: “Labour is right to recognise that government action is needed to tackle rising rents, but the vague proposals put forward today would leave millions unprotected from exploitatively high rents. More working families will be forced to skip meals to pay their landlords, or will be pushed out of the communities where they’ve lived for generations and into homelessness.

“Rising rents cost us all. Councils are unable to invest in social housing because they are haemorrhaging public funds to cover the cost of emergency homeless accommodation while the national housing benefit bill goes through the roof.

“If the next government does not make urgent and wide-reaching interventions, the housing emergency will deepen and ordinary people will pay the price. We need rent control now, and in the long-run, we need a shift away from a system that relies too heavily on unaccountable private landlords towards one with far more social homes.”

A representative of another group in the Renters Reform Coalition - Acorn - tweeted over the weekend that “Despite some positives, Labour's manifesto is severely lacking in policies to combat the housing crisis.

“Extending Awaab's law to cover private rented homes and ending Section 21 evictions are both positives. But the shortage of detailed commitments and policies that would turn the tide on the housing crisis is incredibly disappointing.

“Overwhelming support for rent controls across both Conservative AND Labour voters yet neither party have put rent controls on the table.  They’re not going to hand us rent controls from above. We’re going to fight for them.”

Generation Rent is less critical of the Labour rental sector proposals - the group’s chief executive has been a Labour candidate in the past - but still wants more details.

A Generation Rent spokesperson comments: "The Labour party's commitment to rental reform is welcome, and this means that all major parties are now committed to abolishing the outdated and draconian Section 21 evictions that have become the bane of renters' lives.

"Abolishing no-fault evictions was a promise at the 2019 election, and renters cannot wait any longer for this protection, so we're pleased Labour has committed to doing this immediately.

"It is good that the manifesto recognises the various other ways renting isn't working, including discrimination, exploitation, poor standards and rent increases, but we have little detail of what action the party would take.

"Too many tenants are forced out of their home by unaffordable rent rises so any new protections must help tenants stay put, rather than continue to allow landlords to push rents up faster than tenants' wages. Rent rises should be limited to the lower of wage growth or inflation.

"Introducing Awaab's Law to the private rented sector, equalising our protections with those of social tenants, would represent the righting of another wrong from the last parliament.

"The commitment to 'ensure homes in the private rented sector meet minimum energy efficiency standards by 2030' need to be robust enough to combat the challenges of fuel poverty that renters face - the standard must be EPC Band C. 

"It is right that Labour have committed to reform planning to deliver more homes, but this must deliver more homes that are affordable and allow those of us hurting the most right now to escape the renting crisis. This means an emphasis on new social homes, as well as protecting the existing stock, so commitments to review Right to Buy discounts and 'protect newly-built social housing' are also positive."

Shelter is more supportive still of Labour’s proposals.

Polly Neate, chief executive of Shelter, says: “To fuel the economy, people need the foundation of a decent home. Labour’s commitment to the biggest increase in social housing in a generation is bold and desperately needed – to deliver real change we need 90,000 genuinely affordable social homes a year.  

“If Labour wants to hit its target of 1.5m homes by 2029, the only way to do this is to put social housing at the heart of their plans. Investment in new social homes would pay for itself in just three years and return an impressive £37.8 billion to the economy, including through jobs, savings to the NHS and benefits bill. 

“And, with Labour and every major party committed to ending no fault evictions, the next government now has a strong mandate to rapidly reform renting - making it safer, secure, and more affordable - no ifs, no buts.”

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  • icon

    Are these activists EVER happy or do they just want landlords to hand over the properties, bought with their hard earned money, to these sponging parasites who want something for nothing?🤬


    PS: Polly Bleat could help achieve this target of 90,000 affordable homes by unlocking her handbag and spending sone of Shelters MILLIONS on building those houses! 😂😂😂

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    I do agree with your point that people should not be able to sit on from the sidelines making demands of others. They really need to do something practical like funding housebuilding.

     
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    The whole Section 21 thing needs to be properly examined. A Section 21 notice is a very versatile piece of paper used in multiple situations. It doesn't always lead to eviction.
    It can be used as a formal reminder a fixed term tenancy is due to end.
    It can be used as a warning shot that rent arrears or low level ASB need to be addressed.
    It can be an incredibly useful document for tenants to show other creditors to get them to back off and give a breathing space.
    It can also be used when the landlord wants to legitimately end the tenancy for any number of perfectly valid reasons. Maybe essential major repairs are required or because interest rates have impacted the financial viability or the landlord wants to retire, etc.
    The initial notice is only the first of 3 steps. The other steps may not need to be taken.
    Only about 0.2% of tenancies end with a bailiff eviction.

    The current proposals don't actually do anything to help tenants. Creating a law that landlords are highly opposed to will cause more landlords to sell up. It will become harder and more expensive to rent anywhere.
    If an eviction occurs for the reasons that will still be permitted the tenant still has the financial shock of having to fund the move. Maybe some of the extortionate tax that landlords pay should be set aside and used to fund the moving costs of totally blameless tenants on the very rare occasions such people are evicted. Obviously they would have to produce proof they have paid their rent on time for at least 2 years and there have been no incidents of ASB, etc.

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    Shelter is not correct when they say that every major party is committed to ending no fault evictions. Reform UK is not committed to doing that.

    It is because the Conservative Party has lurched too far to the Left that they are headed for electoral catastrophe.

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    Same old nonsense from the usual suspects, I still see no answer to my main question in regards Labours plan to scrap s21 on day 1…. How then can we sell a property on day ?? Pick a date in the future 🤷‍♂️. They appear light on details 🫣

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    It is light on details, but legislation would be needed for any changes to current laws, so it won't be scrapped on day 1. They might start the process on day 1, but they can hardly say it's an emergency like covid, as it's been ongoing for years. So anyone wanting to sell I'd say get on and issue notice now, or as soon as you decide to sell.

     
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    "would enable renters to legally challenge only those increases above ‘market rates.’ "

    If the market rents are much lower than their rented properties, why don't they just move to where it's cheaper??
    They won't because:
    - the market is higher everywhere.
    - they ate probably problem tenants that no reasonable landlord would take on.

    If they want a socialist rental market, why dont they move to Cuba or Venezuela ? Lovely countries with opportunities to practise your GCSE Spanish?

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    Section 21 is the Tenancy Agreement part of The Assured Shorthold Tenancy for letting your Property before which there were Assured Tenancies that no owner was prepared to let under.
    Therefore the need for Assured Shorthold Tenancies fixed periods had to be introduced as no one could find anywhere to Rent.
    When the Tenancy ended the Tenant vacated as per Agreement or if they wanted to stay on subject to both parties agreement another Contract was signed whether for 6/12 months or longer period as the case maybe up to 7 years max. I had done that for years but then the thin end of the wedge started people too lazy to be renewing Contracts and started Periodic Tenancies which was a kind of ok initially until this lot got the idea if we can stay longer why can’t we stay forever.
    Section 21 was never meant to be used every time to end a Tenancy or at all, it was there for breach of Tenancy Agreement by the Tenant and the only option available to the landlord, only the Tenant or the Court can end a Tenancy Agreement/ Contract and S21 is landlords only option, NRLA, Shelter, Generation Rant etc can you get that into your thick sculls.

  • icon

    First we wanted to make a big change in rent, because our mortgages doubled. That isn't unreasonable, and personally, I held off for as long as I could. Again, not unreasonable. So within legislation proposed - except the rent controls they're now talking about, which failed in Ireland, failed in Scotland, but we're English! We can make it work, right? - So pre-emptively landlords will keep pushing rents to the top of the current market, and will want to get ahead of these rent controls as much as possible. So the very thing they want to control, they're forcing up through fear of legislation. Nice one gov', you're really helping those in need!
    You're also sealing into it a guarantee of the max rent increase every year, year-on-year from now on.
    Where as before, many landlords were a bit more relaxed, and allowed rents to fall way behind the market after a number of years. Say goodbye to goodwill.

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    Up to recently I have always been relaxed about rent increases to good long-standing tenants. Now I am nervous and will raise rents annually. This is the sad outcome of all this legislation and vilification. The goodwill between landlords and tenants will sadly disappear as we have been set against each other.

     
  • icon

    It is the Government that has driven up rents by the massive burden of unnecessary administration time consuming costs, regulatory requirements, tax hikes and licensing Schemes, so then talk about rent capping the costs they imposed.

  • Rob NorthWest-Landlord

    I always wonder about these rent controls, you get a landlord who hasn't put the rent up for 5 years then makes a 20% increase say, that's less than 4% a year in real terms, but would it be allowed?

    Yeah I know it would be harsh, and I've never done it - but if they froze my council tax for 5 years I wouldn't be compalining if they made an above inflation rise in year 6.

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    This is apparently the rule in Scotland, you'll need to have passed a maths exam first.
    "So, if a tenant disputes a proposed rent increase by a landlord, then at adjudication, Rent Officers and the First-tier Tribunal will use the formulae to determine the new rent. If the ‘market difference’ is less than 6%, then then the proposed rent will apply. If the ‘market difference’ is more than 6%, then the rent will be increased by 0.33% for every percentage point the ‘market difference’ exceeds 6%, but always subject to a maximum increase of 12%. By way of further illustration, if a landlord proposes an increase of 8% (and the gap between current rent and OMR is 8%), then the increase that would be allowed at adjudication would be 6.7%."

     
  • icon

    How do they expect people to buy when they keep driving up costs of renting preventing them from saving and the gap between the two is too large.
    Just surmising a 2 bed ground floor Flat with garden that I have let for £1350.pm in Acton which was up dated to comply with the 1992 building regulations. I know the Rent is too cheap but anyway try and buy it you’ll find out the facts of life. So try buying it one’s adjacent have actually been sold for £480k how much Mortgage would your repayment be on this even if you had 10% Deposit over 25 years ? £2600.00 pm or something at a guess you tell me, even if I was getting a realistic rent they would be still short £1000.00 pm to buy.

  • Nic Gone

    Social housing is a basket case issue for any party - can’t get planning permission, can’t get builders, can’t afford unending subsidised housing costs, can’t keep what you do build due to rent to buy rights, can’t keep up with demand due to population increase.
    So they fiddle with the PRS as an easy target to show they are ‘doing something’. Pricking the housing balloon is all they are doing….what a mess

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    Other incidentals per month C/tax £140.00, service charge maybe 120.00, say Gas & Electric £100.
    So now all you high and mighty Organisations time to take a look in the mirror with your big ideas about what Landlords must be doing and the damage you have caused.

  • David Saunders

    After Labour come to power and section 21 is scrapped, properties to let especially in London will become virtually non existent as per pre the introduction of section 21 back in 1988. Hence already high homeless figures will go into orbit but it will take many many years before our then politicians take their heads out from their own backsides and admit what a cxxk up it was to set about fixing something that wasn't broken.

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    These activists fail to recognise that landlords are a business not a charity. The small landlords are exiting the market. The Corporate landlords will not stand for all these demands and demand exemptions. Without the PRS homelessness will increase. No government is going to be to supply enough social housing. All this vilification of landlords has to stop. Insurance premiums have risen 30-40 percent over the last year. Where is the outcry over this?!

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