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The potential abolishment of Section 21 has prompted Landlord Action Founder, Paul Shamplina, to invite Housing Minister Heather Wheeler “to work together” on changes to the possession processPaul has written to Heather Wheeler, inviting her to gain a greater understanding of the possession process before making drastic reforms. This comes after a survey¹ carried out by Landlord Action has revealed that 38% of landlords will consider selling up if the Government goes ahead with plans to abolish Section 21. A further 33% said they would only continue being a landlord with significant changes to Section 8.The Government has expressed a desire to encourage longer-term tenancies, which Landlord Action agrees makes sense for those that want them, such as families. However, with the current average tenancy life-span already four years and one month, and with approximately 90% of tenants ending tenancies themselves, there is growing concern that abolishing Section 21 is not the right approach to achieve this.According to the survey, 70% of landlords would be less willing to consider a longer-term tenancy if Section 21 was no longer available to them, and a staggering 85% said they would be more selective with their choice of tenant. “If this was the case, the Government’s efforts could end up being counter-productive and harming the most vulnerable tenants” says Paul Shamplina, founder of the regulated law firm and eviction specialists Landlord Action.He continues: “Encouraging longer tenancies will only be possible with major investment in housing courts to help speed up evictions, which currently take 22.8 weeks from gaining possession to issuing a claim for eviction², and clarification regarding new grounds within Section 8 to protect landlords.“It is clear from our survey that with so many other obstacles already faced by landlords, such as the introduction of more regulation, the reduction in the tax relief that landlords can claim on mortgage interest and a three per cent Stamp Duty surcharge on buy-to-let properties, there is a real possibility of the but-to-let market significantly shrinking over the next five years meaning higher rents for tenants.”With a long pedigree of working with Government on reform and legislative change, for example giving evidence to the Select Committee tasked to reform Section 21, Paul Shamplina, has now written to the Housing Minister, Heather Wheeler.Concerned that, despite the opportunities for tenants, the Government may not have a clear handle on unforeseen consequences that changing the law around Section 21 will present, Mr Shamplina has invited Heather Wheeler to attend Landlord Action’s offices in Borehamwood to see first-hand the work Landlord Action carries out, meet their team of solicitors and share their experiences of the court process. He has also invited the Housing Minister to attend an eviction with him and see the reality of what happens on the ground in order to support the government’s work in formulating policy and new law which presents equal opportunity for everyone operating in the PRS.¹ Survey responded to by 263 landlords
² Ministry of Justice___________________________If you have not already done so, please take the RLA survey on this issue.Please can you let this thread know if you are considering selling up if Section 21 gets abolished?SEE ALSO - Section 21 - curated threads, news, & videosUP NEXT - Section 21 - Are landlords under attack?DON'T MISS - Number of private landlords in declineNOW WATCH:
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
Does anybody survey if there is a migration from the AST? How many private landlords now have commercial lets, holiday lets, serviced accommodation, lodgers, etc and is this increasing, decreasing or static?
I don't think you're the usual LL on here Gary.
Doing away with the AST is all well and good but my mortgage co. insists on everyone being on one, and only one.
If there was an alternative they were happy with, I'd be all ears, but I'm sure I'm not the only one that has to go down the AST route whether I like it or not?
I was wondering how many landlords have now invested in holiday lets, serviced accommodation or commercial lets following discussions on the effects of S24. I believe these are all viable with a mortgage. If landlords are migrating to non AST type lets there will be less of an effect on them with the removal of S21.
Holiday lets, SA, and commercial lets are not the usual type of lets out there though, they're niches that have no requirement for an AST anyway.
Property is a very 'sticky' investment - so going from thinking about getting rid to actually doing so is a big step.
However - if even a quarter of the 'considers' - actually did so - that's near enough 10% of landlords...... a huge slice !
Would be interesting to consider the normal 'churn' rate for landords - if we guessed a 35 year landlord lifecycle then that would be about 3% per year 'natural' wastage
DISCLAIMER just my personal opinion - for legal advice consult a qualified professional grown-up.
The "I will sell up" threat again. The government will be so happy with their work.
_________________________________________________________________________The above post is not financial advice, its often me rambling - passing time on a coffee break.If you are looking for the Best BTL Mortgage? Call the Specialist Team at Bespoke Finance._________________________________________________________________________
The 38% sounds doom laden , but no detail of what position those landlords are in, how many properties they have. If the headline was 38% of rented property may be sold (very foughly 1.8 million) that would be a headline and ,if dumped on the market suddenly ,by themselves severely depress the market.
But if the 38% are smaller landlords with 1/2 properties its a very different story. If they happen to older and looking to ease further towards full retirement then maybe not surprising.
The plague of todays world sensationalist headline grabbing numbers with no depth.
As such pretty pointless and make undermining your position to easy.
Agreed. There's a statistic to back up every argument if asking the appropriate questions to a carefully chosen sample.