Renters' Rights Bill

Written evidence submitted by Susan Osborne (RRB68)

Qualifications for submitting evidence:

24 years as a director of a letting agency

30 years as a landlord of residential properties in the local area

9 years as a trainer of letting agents

1. Primary concerns:

This legislation will have unintended consequences.

1.1 Fewer properties will be available for tenants to rent as some landlords will decide to move out of the market.

1.2 Landlords that stay in the market will only accept tenants with extremely good references and earnings, so tenants who do not meet stringent referencing criteria will not be accepted as landlords will not wish to take the increased risk.

1.3 Without fixed-term tenancies any Guarantor on the tenancy would be able to give notice so landlords cannot look to reduce their risk of housing tenants with lesser earnings or previous housing issues by accepting them if they have a suitable guarantor.

2. Secondary concerns:

2.1 Many landlords currently choose to use Section 21 when technically they are entitled to use Section 8 in order that they are not required to confront their tenants. Some landlords are frightened of their tenants.

2.2 Relations between tenant and landlord can be eroded by numerous smaller issues which occur over a time until the relationship becomes unworkable.

2.3 The landlord’s only recourse in the future would be Section 8 Ground 12 which is discretionary. Some landlords will choose to sell rather than proceed to court on this basis.

3. Rent arrears ground for possession

3.1 Increasing the rent arrears requirement from 2 months to 3 months arrears prior to the service of a section 8 notice using ground 8, combined with the delays in the court system will lead to the landlord not receiving rent for at the very least 6 months and much more realistically 12 months. An untenable position for most small landlords.

3.2 Landlords with small portfolios will look to use rent guarantee insurance products to offset the risk of no rent being received.

3.3 Rent guarantee insurance products will only be available where applicants can pass stringent reference checks or have a suitable guarantor. See points 1.2 and 1.3 above.

Susan Osborne

29 October 2024