Legal experts have warned that new Labour regulations might let tenants spend months without paying rent, which could put middle-income owners “on the verge of bankruptcy.”
Last week, the Royal Assent was given to the Renters’ Rights Bill, which is a big set of changes to renting laws. These changes will go into effect in April of next year.
Angela Rayner, the former Housing Minister who quit after The MoS found that she hadn’t paid the necessary taxes on her new seaside home, oversaw it. It pledges to give private tenants the biggest improvement in their rights in a generation.
But protesters are worried that the legislation could let tenants take advantage of the system and not pay their rent for months.
They believe landlords might lose hundreds of thousands of pounds in unpaid rent and legal fees, and they could even lose their homes and go bankrupt.
The law gives tenants three months instead of two to pay their rent, and it gives landlords four weeks instead of two to provide notice before starting “Section 8” legal actions to throw them out.
It also takes away landlords’ right to issue Section 21 notices, which are commonly known as “no-fault evictions.”
There will also be no more fixed-term contracts; instead, there will be rolling contracts.
Angela Rayner, who used to be the Housing Minister, was in charge of the Renters’ Rights Bill. She stepped down after The MoS found out she hadn’t paid the right taxes on her new home.
Angela Rayner, the former Minister of Housing, was in charge of the Renters’ Rights Bill. She quit because The MoS found out she hadn’t paid the right taxes on her new beach house.
Paul Schamplina, who started the housing law firm Landlord Action, said, “It could be catastrophic.”
Two real estate professionals told Reeves she would need a license to rent out her property, but she told the Prime Minister she didn’t know. “Tenants will get wise to the fact that if they’re not paying rent, they know it’s going to take a long time for the tenant to be evicted.”
“Tenants who play the system or don’t care about their credit rating want to stay in the property as long as possible, not pay the rent, and leave a day before the eviction.”
Critics also worry that the changes might lead to “tens of thousands more” Section 8 lawsuits against tenants, which would make landlords have to wait even longer for repossession hearings, which can already take up to eight months in some parts of London.
Landlords can spend tens of thousands of dollars on legal fees during that time, but tenants can get free legal help and keep piling up debt.
Chris Norris, head of policy at the National Residential Landlords Association, said, “Landlords now usually wait six months before you get a hearing.”
“If tenants don’t want to leave. Then you have to go back and acquire a warrant and wait for the bailiffs.
“You could be waiting months to get your property back, even after the court has told you that you have the right to it back because the tenants won’t leave.”
“At the very least, you could lose that property and go bankrupt.”
A representative for the Ministry of Housing, Communities, and Local Government said, “Good landlords have nothing to worry about with our changes.”
“Our landmark Renters’ Rights Act will make the market fairer for tenants and make sure that landlords can act fairly when they need to, including with stronger grounds for repossession.”
About the Author
