Landlords welcome MPs proposals for housing courts for rent arrears
Landlords welcome proposed changes to the rental market, including new housing courts to help tackle rent arrears and anti-social behaviour
- Levelling Up, Housing and Communities Select Committee issues rental report
- Report calls for the development of a fast-acting specialist housing court
- New housing court would deal swiftly with rent arrears and anti-social behaviour
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 by MPs that looks into the reform of the rental sector.
The report comes after the Government announced planned changes to the market, including the abolition of no-fault evictions.
The so-called Section 21 notices are expected to be outlawed soon. The notices allow landlords to terminate tenancies without giving any reason.
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Calls for new dedicated housing courts: Legitimate possession can currently take many months due to a backlog in the courts
The report by the Levelling Up, Housing and Communities Select Committee calls for a new housing court to help speed up the time it takes for courts to process repossession cases.
Legitimate possession can currently take many months due to a backlog in the busy county courts system.
The committee’s report also suggested that rent arrears and anti-social behaviour requires a swift response from the courts.
In its report, the committee warned: ‘It is not clear whether the Government fully appreciates the extent to which an unreformed courts system could undermine its tenancy reforms.’
It goes on to say that anti-social behaviour by tenants should be a mandatory ground for repossession even if a criminal conviction has not been made.
It also suggested that student tenancies should be exempt from plans to make every tenancy open-ended.
It warned that the Government’s current plans ‘could make letting to students considerably less attractive to private landlords, as the student market mirrors the academic year and benefits greatly from 12 month fixed tenancies.’
Calls are also being made to overhaul the tax system for landlords, to help prevent buy-to-let investors leaving the sector.
By doing this, it will boost the supply of rental homes – something that will ultimately help tenants by keeping rents lower if demand levels remain the same.
The committee is calling on the Government to ‘review the impact of recent tax changes in the buy-to-let market with a view to making changes that make it more financially attractive to smaller landlords.’
Chris Norris, of the National Residential Landlords Association, said: ‘We warmly welcome much of the report.
‘The NRLA has never been against reform of the sector, but it has to be fair and workable for both tenants and landlords.
‘That is why the committee is right to call for court reform to underpin the ending of Section 21, changes in plans for student tenancies and ensuring cases of anti-social behaviour are prioritised by the courts.
‘As the committee rightly notes, the biggest challenge faced by many renters is that there are not enough homes to rent. All the protections in the world will mean nothing for tenants if the homes are not there in the first place.
‘That’s why the Government should accept the call for a full review of the impact of recent tax changes in the sector.’
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Tax changes: Calls are also being made to overhaul the tax system for landlords, to help prevent buy-to-let investors leaving the sector
Marylen Edwards, of landlord mortgage lender MT Finance, said: ‘The private rental market continues to be hugely important.
‘Interest rate rises mean renting is still a necessity for many would-be first-time buyers, who are hindered in getting mortgages due to the rising cost of living.
‘Cities across the UK are almost back to fully functional ecosystems, and the rental market continues to thrive in these locations.
‘Anything that supports landlords and provides clarity to the market is welcome.’