Renters' Reform: New deal for landlords

As we enter 2021 the Government is expected to push forward its Renters’ Reform Bill plans. Here NRLA Chief Executive Ben Beadle shares the association’s proposals outlining what the new rules should look like and how they could work for landlords.

With Covid-19 dominating our lives since the start of the year all eyes have been on the pandemic and its consequences.

But as we move into the new year we are expecting Government to focus attention on plans to overhaul the way the PRS operates.

With this in mind we have this week launched our own proposals, outlining a new deal for rented housing.

The abolition of Section 21 was the headline grabber when the bill was announced and many of you had serious concerns about how these proposals would affect your ability to keep control of your property and repossess should you need to.

Our position has been clear from the start.

Whatever the replacement for Section 21, landlords must retain the right to repossess their homes when they have a legitimate reason to do so.

The Government has made the decision that Section 21 is to go.

It is our job now to put forward compelling, evidence-based proposals detailing what would work for landlords while allowing the Government to meet its commitment to tenants.

In a nutshell we want to keep good tenants in their homes, while retaining the ability to repossess where there is legitimate reason.

We know this is an issue close to members’ hearts and with that in mind worked closely with landlords, along with our partner organisations and senior members of the judiciary to draw up our proposals.

The submission

In our submission to Government, we have included a clear and comprehensive list of grounds upon which landlords may legitimately regain possession of their properties.   

These include circumstances in which the landlord or a family member want to move into the property, they want to sell it or carry out major renovation works.    

They would also be able to repossess where the tenant had built arrears, or was committing antisocial or criminal behaviour, where the terms of the tenancy agreement had been breached or where the tenant has caused damage.  

A full list of all the proposed grounds and their conditions can be found here.

Another major pillar of our proposals is the creation of a new, publicly funded conciliation service, similar to the employment dispute body, ACAS to offer support when problems arise.  

Throughout the process both parties would be able to access advice and support and the service would work to resolve disagreements between landlords and tenants without the stress and costs associated with going to court.

There would also be legally binding consequences for both parties should they breach any agreement reached, with landlords failing to abide by the terms of the agreement banned from being able to repossess the property on the same grounds for six months.

Should there be a breach by the tenants, the case would be fast-tracked through the courts.     

There is currently a huge backlog of possession cases and the conciliation service is one way to reduce the pressure by keeping cases out of court where possible.  

One of the pledges included in the Government’s bill was a commitment to strengthen landlords’ rights to repossess, with valid reason – and we are confident they are willing to listen to what landlords have to say.

Lifetime deposits

Another promise from Ministers when announcing the bill was the introduction of a lifetime deposit.

The concept of a system by which tenants can pass on their deposit between tenancies, rather than trying to raise a ‘second deposit’ when moving, was an idea first mooted by the NRLA – and something we are supportive of.

However we have stressed in our submission it is vital the new system in no way discourages landlords from making valid claims for damage to properties, or leaves them out of pocket when deposits transfer.   

Landlords cannot be expected to give up their right of recourse to a security deposit until such time that they are satisfied there will be no need to make a claim against it.   

How you can get involved

We believe our proposals can bring about a fundamental reform of repossession rights while striking the balance between the needs of both landlords and tenants.

The over-riding aim is to sustain tenancies wherever possible or bring them to an end in a collaborative way and we hope that Ministers will accept our proposals and act on them soon.

In the meantime we would like you to get involved in our campaign.   

We’d ask you to give your feedback on the plans and spread the word via social media. 

We also look to share landlords' stories to showcase real life examples of the challenges landlords face, so if you have a story to tell, please get in touch.  

It is important Ministers know there is support for this approach on the ground. It is in all our interests to keep tenants in their homes where possible and we need to show we are willing to engage to ensure the reforms are ones that will work for landlords and tenants alike.  

To read the proposals in full click here.