16/06/2022
It was quite an eventful day for the property industry.
The Bank of England raised the interest rates from 1% to 1.25% as a measure to handle the inflation. The rates are now at its highest since 2009.
The Landlords were also hit by the details of the White Paper, that aims to create a fairer Private Rental Sector. The most important points are:
1. The section 21 will be banned (we knew that was coming anyways)
2. Tenants will be given stronger powers to challenge poor practice, unjustified rent increases and enable them to be repaid rent for non-decent homes;
3. It will be illegal to have blanket bans on renting to families with children or those in receipt of benefits;
4. It will make it easier for tenants to have pets, a right which the landlord must consider and cannot unreasonably refuse;
5. All tenants are to be moved onto a single system of periodic tenancies, which in the government’s words mean “they can leave poor quality housing without remaining liable for the rent or move more easily when their circumstances change”;
6. A tenancy will only end if a tenant ends or a landlord has a valid reason, defined in law;
7. There will be a doubling of notice periods for rent increases;
8. What the government calls “responsible landlords” will be able to gain possession of their properties efficiently from anti-social tenants “and can sell their properties when they need to”;
9. There will be a new property portal that will “provide a single front door to help landlords to understand, and comply with, their responsibilities as well as giving councils and tenants the information they need to tackle rogue operators.”
There is a lot of controversy around the White Paper, and no doubt there will be continuous debate about it. Unfortunately this will drive Landlords out of the sector, and cause even deeper housing crisis.
