Her Majesty recently announced several plans which will impact on the housing market and property investors in particular. Here is a quick breakdown of just what the Queen’s Speech means for landlords.
The government is set to abolish Section 21, no-fault evictions and modernise the system to support the construction of even more new homes – great news for first-time buyers.
The intention of eliminating Section 21 evictions is to improve renters’ rights, in particular those of tenants in the private rented sector; but it is also stated that it will help to strengthen repossession grounds for landlords with valid cause. There is no doubt that, if executed well, this is a positive move for the rental industry as a whole.
Proposals for a new lifetime tenancy deposit model will also be introduced with additional reforms implemented to drive improvements in standards, whilst ensuring all tenants have the right to appeal.
Discussions are also being carried out to change the way poor landlords are held to account for failing to deliver safe and decent housing to tenants, whilst not penalising the good landlords.
The legislation is also looking to amend and improve the efficiency within the possession process in the courts, to make it quicker and easier for landlords and tenants to use.
Paul Shamplina from Landlord Action says:
“It was expected that the Queen would make reference to the Renters Reform Bill; I’ve been predicting for a while that Section 21 will be abolished in the next 12 to 18 months, but there has to be reforms of the Section 8 Grounds and major investment made in the Court System coupled to bailiff reforms, especially in the wake of Covid and the lengthy evictions ban.”
Finally, The Queen also announced plans to end the practice of ground rents for new leasehold properties, in addition to a new building safety regulator and modernisation to the planning system allowing more homes to be built.
We look forward to seeing the Renters Reform Bill take shape in the following months as it is set to bring some real positives to the industry and creates an even more fantastic opportunity for anybody looking to invest and build a property portfolio.
If you have any questions or just need some advice regarding the latest announcements, don’t hesitate to get in touch with us here at Pittis.