Experienced legal professionals are now joining the chorus of experts criticising the government’s approach to managing the rental crisis. Gina Peters, head of the landlord and tenant department at London-based solicitors Dutton Gregory, has specialised in residential housing for over twenty years. She expresses deep concern about the current state of the court system, stating she feels ‘frankly embarrassed’ by its delays and unhelpful decisions.
Challenges in the Court System
Peters has advised clients through various housing-related acts over the years, including the Landlord and Tenant Act 1985, the Housing Act 1988 and 1996, the Deregulation Act 2015, and recently, the 2023 Renters Reform Bill. One critical aspect that disappoints her is the government’s failure to create a ‘Housing Court,’ despite their initial pledge to invest in the court system.
“Never in my 27 years as a lawyer have I felt more embarrassed by the delays and unhelpful decisions produced by courts. A client who requested a warrant for possession through me back in November 2022 is still waiting for an eviction date. With the latest crises in London courts, and bailiffs requiring more personal protection equipment before carrying out evictions, he will be waiting even longer. With significant rent arrears when the order was made, he is losing £1,500 per month until the tenant leaves. Meanwhile, his mortgage payments have risen in line with interest rate increases. Where is the justice in this?” – she says.
Imbalance in Treatment: Landlords vs. Tenants
It is a common observation in the wider legal community that the court system no longer treats people – landlords and tenants – with an even hand. Peters emphasises that it seems to be one rule for one and one for the other.
Critique of the Renters Reform Bill
Peters is also critical of other elements of the new Bill – and of provisions that are not included.
“Recently, the sector has become a target for the press on the basis that a minority of landlords cause problems for tenants in the lack of care for their properties and the people they house. However, rented properties create independent living for millions – and contribute hugely to the British economy – so, we need a piece of legislation that works with landlords, rather than against them.
She continues: “With one in five households now renting, the private rented sector is an essential part of the housing market. As the government has reduced its housebuilding strategy for all local authorities from mandatory to advisory, with some councils scrapping targets altogether, the housing market is shrinking in relative terms.
Impact on the Housing Market
“There is a very real danger that this Bill will be the last straw for landlords, and there will be an exodus from the sector, with many more previously let properties being put up for sale. This will add to the already shrinking housing stock available to rent, and consequently with rental properties in high demand, rents could continue to surge.”
“Further effective lobbying is clearly needed on the details and implications of this Bill if it is to benefit all parties; otherwise, securing a rented property is going to become much harder,” she insists.
Infrastructure for Landlords Seeking Possession
“Even once the changes to the reforms are finalized and in place, what the Bill really needs to address is the infrastructure for landlords seeking possession of their properties for genuine reasons. Default in rental payments as debt rises, rising antisocial behaviour, and a need to sell the property to realise the capital are some of those reasons. All the rules can be in place, and are currently, but without a court system that works to support such situations, landlords will continue to feel persecuted by a broken system, and this will not improve the current housing crisis.”
At Lifeboat Lettings, we largely concur with these observations. It remains to be seen whether the recent proposed legislation – the Renters Reform Bill can effectively be rebalanced to treat both landlords and tenants equally and fairly (as all laws should) and thus reverse the consequential reduction of the PRS and available rental housing. The jury is out currently.
At Lifeboat Lettings we will always help and advise landlords and assist where we can.
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