Caught between reforms, landlords speak out

Anusha Singh Thursday 30th January 2025 01:19 EST
 

“Everyone talks about people's rights, but by owning an apartment or a house, is my right less than the renter's right?” is a question Bharat Vaswani asks as his story paints a vivid picture of the challenges landlords face as the Renter’s Reform Bill plans to increasingly tilt the system in favour of renters.

What began as a simple arrangement to rent out a property in London turned into a years-long battle for the right to reclaim a home. The trouble started with seemingly straightforward steps—conducting background checks, maintaining the property, and generously providing key benefits like paying for repairs and service charges—all with the intention of being fair and responsible landlords.

But when Bharat and his wife found themselves needing to return to their own home, the situation quickly spiralled out of control. Despite giving the tenants ample notice—more than two and a half months—they were met with resistance and aggressive tactics. The tenants refused to vacate, invoking the need for a court order, and Bharat soon found himself plunged into the world of legal battles, confused by the intricacies of eviction laws.

As landlords, Bharat and his wife had never anticipated such a nightmare. After all, they had done everything by the book, following the rules and maintaining the property in pristine condition. Adding to the complexity was the tenant’s situation, which involved an autistic child and a reliance on social housing benefits. The council, in an attempt to protect the family, encouraged them to stay, despite the fact that Bharat’s family was now effectively left homeless.

As they fought to reclaim their property, they were constantly reminded that the laws meant to protect renters were leaving landlords vulnerable. This ordeal is an example of the unintended consequences of Renter’s Reform Bill can be, where well-meaning policies to protect tenants can often put landlords in impossible situations.

As we look at the evolving rental landscape in the UK, it's clear that Renter’s Reform Bill must strike a balance—protecting tenants without leaving landlords exposed to unnecessary hardships.

Landlords  being demonised

Landlords are expressing serious concerns about proposed reforms to the rental market, warning of potential harm to their ability to manage properties effectively. The National Residential Landlords Association (NRLA) has stressed that while most landlords aim to provide safe, comfortable homes, they need adequate time and support to adapt to the new regulations.

Bharat, a landlord, voiced frustration at the negative portrayal of landlords in public discourse and policymaking. “Not all landlords are bad. For every 1,000 landlords, there might be one or two bad cases, but why does that define public perception or policymaking? It’s unfair,” he said. Bharat noted that landlords face significant financial burdens, such as mortgages and council taxes, yet they are often vilified. “Because we worked hard and saved, we’re now the ones being penalised. This narrative discourages investment in the rental market and creates an atmosphere of mistrust.”

Bharat warned that demonising landlords could destabilise the market, discouraging investments in buy-to-let properties. Policies like the abolition of no-fault evictions could exacerbate the problem. “If good landlords withdraw, tenants with poor credit or financial challenges will be left with fewer options, potentially falling prey to rogue landlords. This approach is counterproductive and harms the very people it aims to protect.”

Deshal Raja, who manages over 100 properties and more than 300 tenants is the Co-Founder & Managing Director of the estate agency One Move, echoed similar concerns, highlighting how the proposed Renters’ Reform Bill could undermine landlords’ confidence and stability. A key issue is the bill’s provision allowing tenants to give two months' notice at any point during a fixed-term tenancy. “This creates uncertainty of term for landlords, who face additional costs from frequent tenant turnover, such as re-letting fees and reference checks,” Deshal explained.

Deshal also criticised the removal of Section 21, which currently enables landlords to evict tenants without providing a reason. “The court system is already overloaded, with eviction cases taking seven to nine months, sometimes longer due to court delays, and bailiff shortages. Without a working court system , landlords may struggle to regain possession of their properties especially when faced with problem tenants, rent arrears and high mortgage payments.”

Both Bharat and Deshal emphasised the need for balanced policies that address tenant protections while safeguarding landlords’ interests. Without these measures, smaller landlords may leave the market, worsening the rental crisis and leaving tenants with fewer housing options. They called for a more collaborative approach to ensure a fair and sustainable rental sector for all stakeholders.

Small landlords get the shorter end of the stick

While the Tories’ Renters’ Reform Bill and Labour’s Renters’ Rights Bill share common goals in addressing Britain’s housing crisis, the two parties have different approaches. Labour’s reforms, combined with Rachel Reeves’s changes to Stamp Duty for additional properties, disincentivise small landlords and make it harder for homeowners to buy multiple properties for investment, ultimately freeing up more housing for first-time buyers and renters.

Deshal Raja shared his opinion on this stating, “The proposed Rent Rights Bill aims to strengthen tenant protections, but it also risks creating an imbalance that could negatively affect smaller landlords—who make up the majority of the rental market. In fact, statistics show that 94% of landlords operate as individuals or small groups, with 43% owning just a single property. These landlords are not large-scale investors; rather, they are individuals who rely on rental income to meet the rising costs of living, such as utilities, food, and childcare.

“One aspect of the bill under concern is the proposed cap on upfront payments. This could limit financial safeguards for landlords who use these payments to mitigate risks, this will negatively impact tenants with poor credit histories, previous financial issues or people from abroad who do not have any history in the country.”




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