Latest news with #Section21
Telegraph
10 hours ago
- Business
- Telegraph
Landlords could be forced to forgo rent for a year under Labour reforms
Landlords could be forced to forgo rent for up to a year under Labour's rental reforms, experts have warned. A provision in Angela Rayner's Renters' Rights Bill, which is just one parliamentary vote away from becoming law, will stop landlords who put their homes on the market from relisting properties as rentals for up to a year if they fail to sell. With as many as a third of house sales falling through, it could leave thousands of potential rental properties locked out of the market. So-called 'Section 21' notices – also known as no-fault evictions – will be banned, and all tenancies will be on a rolling basis with no fixed end date. The Bill will stipulate that landlords can only repossess properties in four circumstances: if they're looking to sell, if they're looking to move in, or if there is redevelopment or if the property is seized by a mortgage lender. Other grounds include if tenants fail to pay the rent on time, although landlords will have to wait longer to evict for this reason. Chris Norris, chief policy officer for the National Residential Landlords Association (NRLA), said: 'Whilst we understand the Government wants to prevent abuse of the new tenancy systems, the country cannot afford to have homes standing empty for months on end. 'Around a third of property sales fall through before completion, mostly as a result of problems faced by the buyer. 'Given the scale of the housing crisis, it cannot be right that homes will be left empty for many months even when landlords are not to blame when a house sale fails to progress.' Nathan Emerson, chief executive of Propertymark, said that the new rules will mean that 'landlords must provide at least four months' notice to a tenant should they need or wish to sell their property. In addition, there will also be an initial 12 months 'protected interval' at the start of any tenancy where a landlord is prevented from evicting a tenant for the purpose of selling. Further to this, should a landlord choose to sell the property in question, they will be restricted from re-letting that property for a period of 12 months after evicting the tenant, should the property not sell'. Mr Emerson added: 'This may in some circumstance cause a degree of property vacancy, in an already pressurised situation where supply is greatly required.' Many of the reforms included in the Bill were first mooted by Michael Gove, the former Conservative housing secretary. But the original legislation said landlords would have to wait three months to relist a property that had been put on the market, rather than a year. Landlords have repeatedly warned that the more stringent rules will push them out of the market, eat into margins and make letting out properties unprofitable. In March, the number of UK properties available for rent hit an all-time low of just 284,000 – 23pc lower than during the pandemic, when the market dried up. Tax credits on mortgage interest for landlords were gradually slashed between 2017 and 2020, down from 40pc for higher-rate taxpayers to a flat rate of 20pc. Interest rates leapt, with buy-to-let mortgages at the sharper end of the increases – squeezing landlord profits even as rents rose. In Rachel Reeves's maiden Budget, an extra 5pc stamp duty surcharge was introduced on additional property purchases. Housing charities said that the delay of a year was necessary in order to stop the backdoor return of 'no-fault' evictions. Ben Twomey, chief executive of Generation Rent, said: 'It's right the Government will outlaw arbitrary Section 21 evictions through the Renters' Rights Bill. This change can't come soon enough. 'If landlords are concerned about a property sitting vacant, they are free to sell with sitting tenants.' A Ministry of Housing, Communities and Local Government spokesman said: 'Our landmark Renters' Rights Bill will bring long overdue fairness to the market by making sure it is unprofitable for landlords to evict a tenant and deprive them of their home, just so they can rent to new tenants at a higher price.'
Yahoo
07-06-2025
- General
- Yahoo
The mum and two kids living in a hotel room with beds pushed together
A mum has been left living in a hotel room with her son and baby due to the housing crisis. Abbie Coulthard, eight-year-old son Rocco and six-month-old Dollie, live in a hotel room with three beds pushed together. The main bed is for Abbie, a single bed for Rocco, and a unit for Dollie to sleep in between them. The family is one of many impacted by Liverpool's ongoing housing crisis. Their situation means that they have been forced to live in a hotel room for five weeks, the Liverpool ECHO reports. READ MORE: When UK weather will change as soaring temperatures of 28C set to hit READ MORE: Exact time the Red Arrows will fly over the North West this afternoon Join the Manchester Evening News WhatsApp group HERE In the hotel room they currently call home clothes hang from the curtain pole by a window which doesn't open. Next to the hotel TV are an air fryer and a kettle, which are their only way of heating up food. Behind the bed is a large, garish picture, a stark reminder that the room is usually aimed at people heading out on the town and not a family just trying to get by. Liverpool is currently in the midst of an acute homelessness and housing crisis. Sadly, Abbie and her family are one of around 1,250 families who need emergency temporary accommodation. The crisis is expensive as well, with Liverpool's council having to pay some £21 million to house desperate people in hotels and bed and breakfasts. This figure represents an astonishing 12,000 percent increase over five years. This year the bill is only set to rise further still, and could hit £30 million. Each of these figures represents a story just like that of Abbie and her family. "We lived in a normal house in Hunts Cross, but the landlord put the rent up and then said he wanted to sell the house," explains the 31-year-old mum. "We got a Section 21 eviction notice and we had to move out." Before this, Abbie had operated a café and considered herself to be doing fairly well, but like with many people who are forced out of their homes - things can quickly spiral. Cost of living pressures forced her to close the business and with nowhere for her and her children to live - she desperately contacted Liverpool City Council for help. At this point Abbie and her children joined the growing number of people living a transient existence in this city, being moved from temporary spot to temporary spot, wherever the council could find. Some locations were a very long way from home. "At first they put us near Warrington in a motel room at a service station full of trucks," explains Abbie. "There was nowhere to make food, we survived on meal deals from WH Smith, I had nowhere to sterilise the baby's bottles, it wasn't good at all." After this, the family were remarkably moved all the way to Manchester. The facilities were better but the distance made it almost impossible for Abbie to get 8-year-old Rocco to his school in south Liverpool. Eventually the family were brought back to Liverpool and are currently residing in a city centre hotel, which the ECHO has agreed not to reveal the location of. What has complicated an already very difficult situation is that Abbie has a debilitating health issue in the form of serious cluster headaches. She has been prescribed oxygen tank therapy to relieve the serious pain she faces from the condition, but says this has never been taken into account by those placing her in temporary accommodation. "I have been here for five weeks now," she explains. "When I first got here I was saying I need to get my oxygen delivered and they said I couldn't have that here. It was health and safety or something. But I really need it. I haven't been able to take it to the other places they put me either." "I am trying to just keep everything together," she adds. "I have got to, for these two. But my head kicks off every couple of hours if I am up all night, I struggle. It's not fit for purpose being here, especially with my health condition. Its just a nightmare. We can't stay here." While we are talking, Rocco, just in from school, jumps on the bed to grab a drink from a mini-fridge that is resting on the window ledge of the hotel room. "That's my mini fridge," he says proudly. "It's going to go in my new room when I get one." Abbie says she struggles with the impact her situation is having on her son. "He hates it, he can't play out with his mates or anything, we have no life here," she explains with a resigned expression. "I am trying to keep him happy. We went to Taskers the other day and I was asking him what he wants for his new room. And he was like 'have we got a house?' and I had to say 'not yet.' It's not easy." For anyone looking after a six-month baby and an eight-year-old son would be tough, but to do it in these cramped conditions is another matter. "We try and stay out of the room as much as possible," says Abbie. "We can't even cook a meal at home. All we can do is use the air fryer and the fridge." In today's precarious society, where rising rents, cost of living pressures and a lack of affordable housing have created a perfect storm of problems for families, Abbie's is a story that could happen to so many. "This could happen to anyone," she says. "I had my business, I had a house, I was driving around in a nice car. And then this happened to me overnight. "I have never depended on anyone before, I've worked all my life and the one time I am now struggling it feels like I am just getting fobbed off." "It's just scary how everything can spiral so quickly," she adds. "I just feel like I am drowning." The ECHO has made enquiries about Abbie's housing situation with the city council. It is understood she has just recently been offered a property in north Liverpool, but is concerned about accepting it because it is even further away from Rocco's school than her current base.
Yahoo
06-06-2025
- Business
- Yahoo
Labour urged to publish impact of rent reforms as eviction delays soar
Ministers are being urged to publish a report into the impact of rental reforms on the courts as landlords face eight-month delays to repossess their property. Government departments are required to complete a justice impact assessment for any new bills that are likely to impact the UK courts system. Labour's Renters' Reform Bill is set to become law this summer and will include the removal of Section 21 'no-fault evictions'. There are fears the change will force landlords to rely on the courts to regain possession of their properties, adding to existing backlogs. Private landlords faced an eight-month wait from making a claim to the courts to their properties being repossessed in the first four months of 2025, according to the latest government data. Chris Norris, chief policy officer for the National Residential Landlords Association, said: 'The justice system is simply not ready for the impact of the Bill. 'In the interests of transparency, the Government should publish the Justice Impact test. The Government also needs to come clean about how it defines the courts being ready for the reforms. Warm words are no substitute for clear objectives for the justice system.' Justice impact assessments are an internal process and not usually published by government departments, but previous ministers have committed to publishing court reviews ahead of implementing rental reforms. The former Levelling Up, Housing and Communities Committee in a 2023 report said: 'It is not clear whether the Government fully appreciates the extent to which an unreformed courts system could undermine its tenancy reforms.' Furthermore, in a consultation in 2022, the then-government acknowledged that Section 21 was preferred by landlords to other means of eviction – such as Section 8 – as it was perceived as 'quicker and more certain'. Richard Atkinson, president of the Law Society, said of the Renters' Rights Bill: 'The bill will not be effective without further investment in the justice system.' Mr Atkinson also urged the Government to 'provide greater funding and more clarity to the enforcement provisions so that justice is accessible to renters and landlords alike'. In addition to concerns about the justice system, a report has warned impacts of the bill will add almost £900 a year to the average tenancy. The legislation will limit landlords to just one rent increase per year capped at the 'market rate' – the price that would be achieved if the property was newly advertised to let. Landbay said property owners were planning to increase rent by an average of 6pc, which would add £74 to the average monthly rent, or £888 a year. Dr Neil Cobbold, director at property software company Reapit UKI, said: 'The Government's decision not to share the Renters' Rights Bill justice impact test raises serious questions about transparency and accountability. The estimate of changes in the number of court and tribunal cases is a vital tool for understanding how the legislation will affect the property sector – including case volumes – and whether the justice infrastructure is in place to support the change.' The Bill is currently going through the House of Lords before being sent back to the Commons and is expected to receive Royal Assent by summer 2025 and be implemented before the end of the year. An MHCLG spokesman said: 'As was the case under previous governments, Justice Impact Tests are internal government documents and it is not standard practice for them to be published. 'We are fully focussed on ensuring the justice system is ready for our reforms, which will create a fairer housing market, and are working closely with the Ministry of Justice and HM Courts and Tribunal Service to ensure all necessary preparations are in place.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Yahoo
06-06-2025
- Business
- Yahoo
Labour urged to publish rent reforms impact report as eviction delays soar
Ministers are being urged to publish a report into the impact of rental reforms on the courts as landlords face eight-month delays to repossess their property. Government departments are required to complete a justice impact assessment for any new bills that are likely to impact the UK courts system. Labour's Renters' Reform Bill is set to become law this summer and will include the removal of Section 21 'no-fault evictions'. There are fears the change will force landlords to rely on the courts to regain possession of their properties, adding to existing backlogs. Private landlords faced an eight-month wait from making a claim to the courts to their properties being repossessed in the first four months of 2025, according to the latest government data. Chris Norris, chief policy officer for the National Residential Landlords Association, said: 'The justice system is simply not ready for the impact of the Bill. 'In the interests of transparency, the Government should publish the Justice Impact test. The Government also needs to come clean about how it defines the courts being ready for the reforms. Warm words are no substitute for clear objectives for the justice system.' Justice impact assessments are an internal process and not usually published by government departments, but previous ministers have committed to publishing court reviews ahead of implementing rental reforms. The former Levelling Up, Housing and Communities Committee in a 2023 report said: 'It is not clear whether the Government fully appreciates the extent to which an unreformed courts system could undermine its tenancy reforms.' Furthermore, in a consultation in 2022, the then-government acknowledged that Section 21 was preferred by landlords to other means of eviction – such as Section 8 – as it was perceived as 'quicker and more certain'. Richard Atkinson, president of the Law Society, said of the Renters' Rights Bill: 'The bill will not be effective without further investment in the justice system.' Mr Atkinson also urged the Government to 'provide greater funding and more clarity to the enforcement provisions so that justice is accessible to renters and landlords alike'. In addition to concerns about the justice system, a report has warned impacts of the bill will add almost £900 a year to the average tenancy. The legislation will limit landlords to just one rent increase per year capped at the 'market rate' – the price that would be achieved if the property was newly advertised to let. Landbay said property owners were planning to increase rent by an average of 6pc, which would add £74 to the average monthly rent, or £888 a year. Dr Neil Cobbold, director at property software company Reapit UKI, said: 'The Government's decision not to share the Renters' Rights Bill justice impact test raises serious questions about transparency and accountability. The estimate of changes in the number of court and tribunal cases is a vital tool for understanding how the legislation will affect the property sector – including case volumes – and whether the justice infrastructure is in place to support the change.' The Bill is currently going through the House of Lords before being sent back to the Commons and is expected to receive Royal Assent by summer 2025 and be implemented before the end of the year. The Ministry of Housing, Communities and Local Government was approached for comment. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time Business News
06-06-2025
- Business
- Time Business News
How to Sell a Tenanted Property: A Landlord's Guide
Selling a property with sitting tenants can be a practical way for landlords to release equity without losing income during the sales process. However, it does come with specific legal considerations, responsibilities, and market dynamics that differ from selling a vacant property. If you're looking to sell tenanted property, this guide outlines the key steps and considerations to help ensure a smooth and compliant sale. Yes, you can. In fact, selling a tenanted property is quite common, particularly among landlords aiming to attract buyers from the investment market. These buyers often prefer properties with tenants already in place, as it offers immediate rental income and avoids the hassle of sourcing new occupants. However, landlords must understand their legal obligations, as tenants retain rights under existing tenancy agreements even after the sale. One of the first steps in the process is to inform your tenants of your intention to sell. While you're not legally required to end the tenancy before listing the property, it is best practice to be transparent. Tenants may be understandably concerned, so it's important to reassure them that their tenancy agreement will remain legally binding, even if ownership changes. You'll also need their cooperation for viewings and inspections. Under the terms of most tenancy agreements, tenants must be given at least 24 hours' notice before a visit, and visits should be arranged at a reasonable time. Open communication can go a long way towards maintaining a good relationship during this period. Buyers typically fall into one of two categories: investors or owner-occupiers. Investors will generally be open to purchasing a tenanted property, as the rental income is already established. Owner-occupiers, however, are more likely to want vacant possession. If you're hoping to sell to the general residential market, you may need to serve notice on your tenants in line with your legal obligations and the tenancy agreement. For landlords looking to sell tenanted property quickly and without disruption, targeting cash buyers or companies that specialise in tenanted purchases can be a practical route. The type of tenancy in place will influence the selling process. Most tenancies in the UK are Assured Shorthold Tenancies (ASTs), which require a Section 21 notice for possession. You must ensure your paperwork is in order, including proof of deposit protection, up-to-date gas safety certificates, and an Energy Performance Certificate (EPC). Failing to meet legal requirements can delay the sale or lead to disputes. It's also worth noting that tenancy agreements, rent schedules, and maintenance records are valuable documents for prospective buyers, especially investors. A well-maintained property is easier to sell. Ensure the home is clean, safe, and presentable — even if you're not able to stage it fully due to the tenancy. Offering tenants a small incentive to keep the home tidy for viewings may help facilitate the process. Selling a tenanted property can be straightforward with the right preparation. From investor interest to steady rental income during the sales process, there are distinct advantages. By staying compliant, communicating clearly with tenants, and targeting the right buyers, landlords can successfully sell tenanted property without unnecessary delays or complications. TIME BUSINESS NEWS
