‘Rome is burning’: NRLA boss warns Select Committee immediate action is needed to tackle PRS supply crisis
Change is needed if the Government is to avoid a mass exodus of homes from the private rented sector once its Renters (Reform) Bill is implemented.
Giving evidence to the Levelling Up, Housing and Communities Select Committee yesterday, NRLA Chief Executive Ben Beadle said that, against a background of rising interest rates and increased taxation, adjustments must be made to ensure landlords have the confidence to continue to provide the homes to let that the country so desperately needs.
The comments come as the gap between the supply and demand of homes to let grows ever larger, forcing up rents and making it increasingly difficult for tenants to find a home.
Ben told the committee: “Rome is burning. We don’t have enough homes for people, we have a supply and demand imbalance, and we need to take urgent steps to build, not just social housing but also to make the private rented sector an attractive place to be.”
He used the session to stress the need for changes to the way that student lets will work to protect the cyclical nature of the market and ensuring the courts can support the new system.
He also said landlords need clarity as to timescales for the implementation of the Bill.
Asked about the loss of fixed term agreements, he raised concerns that a tenant could move in, give two months’ notice and move out, telling the committee: “What we don’t want to do is turn the PRS into ‘Airbnb Lite’.”
He called for a moratorium on tenants giving notice in the first six months to help safeguard against these issues, provided there are no issues with the condition of a property.
Student landlords
He also warned about the impact on the student sector explaining: “If you have open-ended indefinite tenancies for the student market you not only knock tenants’ abilities to find properties when they need them, you also knock landlords’ ability to provide properties. I can’t honestly see what kind of problem it’s trying to solve.”
On the issue of the loss of Section 21, he said using the current court system can be a ‘painful’ process, but stressed landlords repossess properties for valid reasons. He said: “Around a third of repossessions are for anti-social behaviour, and we need to dial back as to what the reason is, because, although landlords don’t need to provide a reason, there invariably is one.
“It could be that they are selling, it could be there is bad behaviour, it could be that there are rent arrears, and what we don’t want to do is legitimise rent dodgers or bad behaviour, we want to ensure landlords have the tools at their disposal to deal with this effectively.”
He said that while the list of grounds and proposed timeframes are welcome: “The 64 million dollar question is the system that’s underpinning it, and we have no clarity around what court reform looks like. I was at a meeting with some very senior judiciary last week and the bad news is neither do they.
“We all want to see end-to-end digitalisation, we all want to see tenants get advice much earlier in the process, but at the moment I don’t feel any great sense of confidence that those who are suffering as a result of anti-social behaviour are going to get their justice in a timely way.”
The Renters (Reform) Bill is expected to get its second reading in Parliament after the summer recess.
The NRLA continues to campaign for positive reform on the issue of students and the six month moratorium on tenants giving notice and is encouraging members to write to their MP to support the association’s calls. To access the editable templates click here.
To watch the evidence session in full click here or the link below.
