New rules give tenants a break from debt

[Grampa]

I’m sure you will all be happy with this

https://www.nrla.org.uk/news-breathing-spaces-new-rules-will-give-tenants-break-from-debt?fbclid=IwAR3GhlakAIxJdkpdLFeedQC4mJdik9-TeE6Slza62vhZTBUVJeXmF7XNBoc

[kerbut]

It goes from bad to worse being a Landlord

[Richlist]

Over the years I have learnt that as a landlord you have to do the follwing:

1. Roll with the punches.  

2. Continuously look to identify any other investment that will provide you a better return.

3. Try to see the positives in any bit of bad news.

The positive(s) here are 

* It's limited to 60 days and

* It doesn't cancel the debt.

[Melboy]

I suppose if a tenant is in serious debt and not paying their rent due to their circumstances then you probably wouldn't receive any rent anyway before this new legislation.

Rolling with the punches...........😀 the only thing I would say is that it is yet another piece of legislation which weighs heavily in favour of the tenant yet again and against the landlord. It's like this Government has a hatred of the private landlord which is something I would not expect from a Conservative government.

I do know there is more bad news on the horizon this coming April with the introduction of the "Renters Reform Bill" which is yet again is going to favour tenants and not landlords.

[Carryon Regardless]

I said years ago that the Housing Act needs replacing. 

With the continual tweeks and additions of every new minister and his team of school leavers it is so  complicated and confusing it makes for excellent litigation material. And we know the winners there. We got used to reading of solicitors and judges mis interpreting the legislation. This would invariably cause additional hardship to the LL in assumption that he is morally wrong and so deserves what ever negative outcome is imposed.

It got massively worse before covid, and covid has served to cause additional confusion for along time after the pandemic has passed due to additional tenant protective measures that are cited as applicable and will continue to be much later.

Where we find ourselves with an adverse tenancy our choice will be to spend more money with far less likelihood of success to attempt to amend the situation. Or ignore realising there is little legal power we have even if we can still afford that route considering losses already incurred. Or use a big stick.

Tbh I only scantily read the link, thanks Grampa. The jist is clear. Trying to stay up to date is like my pc needing updates 3 times a week, most are irrelevant to my pc and my use of it, legislation is often the same. Better spend time on it when I may need to be aware, there is naff all I can do about it anyway.

I'm not aware of the 'Reform Bill', but I'm confident it will introduce more to be afraid of, and that's before Welsh Retard Assembly will want to go one better.

 

[Grampa]

What is the Renters’ Reform Bill?

In what is sure to cause controversy and delight in equal measure, the proposals for the Renters’ Reform Bill were announced over the Festive Period during the Queen’s Speech.

The proposals affect both landlords and tenants, with the Government looking to create more security and longevity in residential tenancy agreements.

The full proposals can be found on the Government website, however the key takeaways are as follows:

In favour of tenants, the main benefits of the Renters’ Reform Bill would be:

• Improving security for tenants in the rental sector, delivering greater protection for tenants and empowering them to hold their landlord to account.
• Improving the experience of those living in the private rental sector and the affordability for tenants when moving from one tenancy to the next by introducing a new lifetime deposit so that tenants don’t need to save for a new deposit every time they move house.
• Improving standards in rented accommodation, driving out rogue landlords and helping to professionalise the sector, with all tenants having a right to redress if their rented properties are not safe and healthy.
• Professionalise letting agents, to the benefit of tenants and landlords.
• Abolishing the use of ‘no fault’ evictions by removing section 21 of the Housing Act 1988 and reforming the grounds for possession.

In favour of landlords, the main benefits of the Renters’ Reform Bill would be:

• Giving landlords more rights to gain possession of their property through the courts where there is a legitimate need for them to do so by reforming current legislation including the Section 8 process. In addition to this the Government will also work to improve the court process for landlords to make it quicker and easier for them to get their property back sooner.

Who would this apply to?

The Bill's provisions would apply to residential lets in England only.

When will it be implemented?

There is no current fixed implementation date. These reforms have been mused for a number of months, however it would now appear that steps are being taken to implement them into law.

Contributing factors that have influenced calls for Housing and rental reforms:

• The English Housing Survey 2017-18 found that the average length of residence in the private rented sector is 4.1 years. An earlier Government consultation on longer tenancies showed that 79 per cent of tenants had only been offered tenancies of 12 months or less.
• According to the English Housing Survey, around three quarters of private renters paid a deposit at the start of their current tenancy. The Tenant Fees Act, which came into force in June 2019, capped deposits to 5 weeks’ rent where the annual rent is under ￡50,000 per year.

Is Section 21 being scrapped?

It is clear therefore from the above points that the Government are introducing the Renters’ Reform Bill to assist tenants and offer them greater security and living conditions in rented accommodation. Whilst it is has not yet been implemented, it is clearly only a matter of time until this will effect residentially lettings in England.

[Carryon Regardless]

Thanks again Grampa, now you've put that up I do have some limited recollection of it.

If I remember my summary was that as and when we wish to recover a property we will be in hope that a court will allow it. The making easier and faster for the LL I didn't see, and w/o deep reading I still don't.

Our S21 tool was always our release from a bad tenancy, it being no fault. It has gone during covid and I would be surprised to see its return even if they don't extend the March 31st no eviction protection in place now, but you know I have been v cynical for years.

I've read of moves to increase controls of who and how we choose T's, to include benefit claimants, animals (a human right apparently), single mothers....well the direction is clear and w/o training we might well become a long term half way house for ex cons.

Following the action to remove our choice of how to terminate a tenancy we then are wholly a gov't agent, local or national same / same. Has my cynicism gone too far

[Nev M]

On 1/16/2021 at 1:21 PM, Richlist said:

Over the years I have learnt that as a landlord you have to do the follwing:

1. Roll with the punches.  

2. Continuously look to identify any other investment that will provide you a better return.

3. Try to see the positives in any bit of bad news.

The positive(s) here are 

* It's limited to 60 days and

* It doesn't cancel the debt.

 

[Nev M]

Hi,

I think this states 2 types of Breathing Space: "Standard" where limit is 60 days and "mental health crisis" breathing space where it seemingly looks like they can stay there forever as long as they have a mental health condition recognised by the NHS. That will be a real issue if they have this for months or years rent free while the mortgage still has to be paid. Ultimately you would lose the property. Also if you was to sell it due to this issue then you have to inform the person buying it that there is a current tenant there covered under this scheme if i have read correctly.

Looks wide open to being abused by scammers to me also.

What's the way around this, should we be looking for guarantors on each tenancy agreement?

[Richlist]

Thats what many of us already do........we insist on either rent guarantee insurance or a home owning guarantor required for every tenancy.

It's usually novice or inexperienced landlords who overlook the need for such essentials.

This combined with very, VERY carefully selection of a suitable tenant (s) can ensure everything runs smoothly.

I once had a property empty for over 2 months whilst 58 prospective tenants viewed it.......57 of them were unacceptable.

 

[Nev M]

Hi Richlist,

Appreciate your considered response as always, than you.

When you mention the "rent guarantee insurance" by this do you mean as offered by your agent and or via insurance company the landlord pays for e.g. Direct Line? I have cover through both currently but is there an insurance also you can insist on the Tenants taking out or di you mean as above?

Couldn't agree more on the right tenant, I also would wait for the right one than rush just to rent to first through the door. Not sure i have had as high at 57 not right for the property in past but does push the point home to be very carful choosing right tenant.

 

[Richlist]

My Agents provide rent guarantee insurance as part of the package they offer so that's what I use most of the time. Prospective tenants have to meet the usual criteria so that the tenancy qualifies for the insurance. Occasionally a tenant doesn't qualify but I still agree to accept them.  When this happens I insist on a home owning guarantor. Other landlords will arrange rent guarantee insurance through companies such as Direct Line, premiums are paid by the landlord usually.

Because tenants have to meet strict minimum requirements in terms of income, employment & references there is no point in any applicant applying if they don't meet the insurers requirements.

Applicants on benefits are unlikely to meet the minimum insurance requirements and it's my experience that mostly they are unable to provide me with a home owning guarantor. 

[Grampa]

I have heard a lot of the "normal" GI policies have been withdrawn from the market or have added a covid clause due the higher risk which makes you wonder if they are value for money

However, I have also heard HomeLet/Let Alliance are bring to the market a new policy though I have no idea on the ristrictions within it