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Landlords welcome proposed changes to the rental market, including new housing courts to address rent arrears and anti-social behavior
- Leveling Up, Housing and Communities Select Committee releases rental report
- Report calls for the development of a fast-acting specialized housing court
- New housing court would deal with rent arrears and anti-social behavior quickly
Landlords have welcomed proposed changes to the rental market, including new fast-acting housing courts and an overhaul of the tax system.
The changes are outlined in a new report from MPs that looks at rental sector reform.
The report comes after the government announced planned market changes, including the abolition of no-fault evictions.
The so-called Section 21 notices are expected to be banned soon. The terminations enable landlords to terminate leases without giving reasons.
Calls for new special housing courts: Legitimate possession can currently take many months due to a backlog in the courts
The Leveling Up, Housing and Communities Select Committee report calls for a new housing court to speed up the time it takes for courts to hear repossession cases.
Legitimate possession can currently take many months due to a backlog in the busy district court system.
The commission’s report also suggested that rent arrears and antisocial behavior require a prompt response from the judge.
In its report, the commission warned: “It is not clear whether the government fully appreciates the extent to which an unreformed judicial system could undermine its rent reforms.”
It goes on to say that tenant antisocial behavior should be a mandatory ground for repossession, even if there is no criminal conviction.
It also proposed exempting student tenancies from plans to make any tenancy indefinite.
It warned that the government’s current plans “could make rental to students significantly less attractive to private landlords as the student market mirrors the academic year and benefits greatly from 12-month leases.”
There are also calls for a review of the landlord tax system to help prevent buy-to-let investors from leaving the industry.
This will increase the supply of rental properties, which will ultimately help tenants by keeping rents lower if demand remains the same.
The commission calls on the government to “review the impact of recent tax changes on the buy-to-let market with a view to changes that make it more financially attractive to smaller landlords.”
Chris Norris, from the National Residential Landlords Association, said: ‘We warmly welcome much of the report.
“The NRLA has never opposed industry reform, but it must be fair and workable for both tenants and landlords.
“That is why the committee is rightly calling for court reform to support the termination of Section 21, changes to student tenancy plans, and ensuring cases of antisocial behavior are prioritized in the courts.
‘As the committee rightly notes, the biggest challenge for many tenants is that there are not enough homes to rent. All the security in the world will mean nothing to tenants if the homes aren’t there at all.
“That is why the government should heed the call for a complete review of the impact of recent tax changes in the sector.”
Tax changes: Calls are also being made to overhaul the tax system for landlords, to help prevent buy-to-let investors from leaving the industry
Marylen Edwards, from mortgage lender MT Finance, said: ‘The private rental market remains hugely important.
‘Due to rising interest rates, renting is still a necessity for many first-time buyers, who are hampered by the rising cost of living when taking out a mortgage.
“Cities in the UK are almost fully functioning ecosystems again and the rental market continues to thrive in these locations.
‘Anything that supports landlords and provides clarity to the market is welcome.’