Renter's Rights Bill Changes Everything - Here is My Opinion

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[jasonbutlerfinancialwellbe]

If you wish to let a property to a single tenant but avoid all the new rules, you could rent it to a company, not an individual. The Renters Rights Act doesn't apply to corporate tenants. You could also let it to a local authority or housing association and avoid the act.

[marklewis]

The rules were tightened up in Wales back at the end of 2022, it's actually not quite as bad as the "Renters Rights Bill" but it's not too dissimilar. The upshot is that landlords are now extremely risk averse. The minimum term is 12 months, so guess what they're asking for 12 months in advance otherwise it's a hard no. They're also asking for UK based guarantors who own their homes to be added to the contract, doing enhanced reference checks, credit checks etc.

In practise what this means is that there are large numbers of people who are now excluded from the market, rents have also shot up. So for Labour to be saying we want less discrimination, what they've actually done is introduce more. Landlord's can't face ruinous costs and risk, be taxed to high heaven and then say sure I'll take on the single mum with 4 kids and an ASBO, who I'll never be able to evict. It doesn't work like that.

[sukhvindertiwana]

Some tenants don't open windows and don't put the heating on. This causes mould. To make this the landlords fault is wrong.

[jimbo]

great info - can you escape most of whats in store by having a rolling contratc - and must you do anything to keep a rolling contact ie notify the tennant?

[allykhan]

I only rent my properties in london with a combine income of £100k+ to avoid issues with lower income earners.

[lukebrown]

Justin - I have a question if you could answer

I currently have 1 residential property which I live in. It is worth 275k and I owe 208k

I want to buy a second residential property for 368k and change my current property into a buy to let which can achieve £1300 a month

What is the best way to go about this?

I was thinking of switching my current property to a buy to let. Leaving the equity that I have in it and basically getting my new residential mortgage on a 90% LTV (10% deposit) approx £37k

Is there a better way to do this?

[youtubeman]

I have got very strict, I check tenants out and if there’s no previous landlord ref, the application goes in the bin, the usual excuse is, I’ve been living with my parents, , It goes in the bin, , I know most of the local landlords and we help each other with new tenants, and I had somebody apply moving from Bristol, it went in the bin, I only rent to locals so all these new rules will just make it harder for tenants I had 30 people apply for my last 3 bedroom house so it’s easy to pick out the best new tenant, it’s not all about the money, I’ve had people offer me 3 months advance cash, , they seem surprised when I tell them no thanks, pick the right person, and then there’s no agrow,

[Richard_Wheatley]

I can only see this backfiring overall. Whilst the majority of the bill is made with good intention, there's been no thought as to how it work in practise. It will further constrain supply as smaller landlords get squeezed out given the risk of increased bureaucracy and overhead costs.
How the courts (which are already backdated by at least 11 months for S21 claims) will manage is anyone's guess.

[D-zh]

A sensible and well balanced assessment. In my view making the rules so lobsided towards
tenants will ultimately result in many that would be considered a decent proposition under current rules, will suddenly find themselves classed as too risky. Small time landlords are much more likely to have the time and resources to properly manage every bit of the rental process as only a few properties. Rather than the corporate sector where they are juggling a large number of units and may face staffing, admin issues and budget constraints which commonly affect reaction times.

[ExoticDoll-ctud]

Hi Justin, I totally agree. I am a responsible Landlady, I gradually worked my EPC grade-C up from an F. I invested in solar panels and got help from my LA. "Awabs Law" is so important, abt time. I was an accidental Landlady back in 2010 and have always made a profit.

[BikesofRye]

1. If a Tenant moves in, and then wants to move out again in a short period. It would likely suggest the property is of a poor standard or they are unhappy with the landlord
2. If a Tenant is not paying. You are cutting corners by not doing checks. Plus you have insurance to cover this inc legal costs.
3. Decent homes standard - brilliant. We should as landlords be taking this seriously. The Landlords that cannot afford keeping a buy to let and maintaining it should sell the property.

[ty]

Why should landlords not be able to discriminate?

[bogstandardash]

You mentioned the exiting of existing landlords would be good for new investors?

Out of interest why? Why do you think anyone new would want to invest? It seems to me with interest rates where they are there is not much profit anymore, and most savings accounts can beat the return, before we start to cinsider the s&p 500.

I have a single btl and im planning on getting out because the interest cost and the additional risks are not worth the profit, which is close to nill if you own a third of a property, as is standard.

Im just keen to ensure im not missing a trick.

[stevenmackay]

I used to pay rent of £477. The landlord served a rent increase to £708.85.

I only took the property as covid prevented me from staying in his HMO.
There was a bucket for a toilet. And i learned after 18 months that there was no EICR or EPC, but yhere was a gas certificate.

I challenged at the tribunal and they reduced the rent yo £370.

The tribunal is free ... There was no cost to either of us...

However it took 4 months for them to decide and i continued paying £477 as required by law. The landlord would not reimburse the difference.

[blueybarnes]

The day the government will sensibly pass(benefit tenants)the tenants rent directly to the landlord things would pan out a lot better!
Because of absurd systems like this they’ll definitely remain an element of discrimination going forward.

[sammy_sam_leonardo]

2:34 or they are in breach of any of the the section 8 grounds.

[TheBobster]

You make the same money buying gold with only 10% of the investment compared to property in the uk.
Without any hassle or stress.

[adigurjar]

Why is this even worse for accidental landlords?

[Gordeaux]

You think 12 months offers renters security, demonstrates how detached you are from the other side of the marketer.
The long term outcome of these rules are a deterrent average Jo trying to be a landlord on a shoe string. Ultimately houses are for living in they’re not investment. Lots of house will be come available for first time buyers. This is a good thing.

[TheBobster]

Hard enough being a landlord without stupid small legal issues which are irrelevant.