News
Agents speak out on Renters Reform Bill dangers
Thursday 1st June 2023
Graham Norwood-LettingAgentToday
Lettings agents within The Guild of Property Professionals think that the Renters Reform Bill could cause many landlords to quit
Graham Wood, managing director at Home Sales & Lettings - a landlord for 20 years and the owner of a lettings agency for over 15 - says: "The outcome is to have sufficiently frightened numerous landlords into selling their rental properties. Landlords feel that one way or another they have been under constant attack for the past five years. Previously, borrowing through a buy to let mortgage had income tax advantages for landlords. However, from 6th April 2017 phased changes have resulted in finance costs no longer being deductible against income on long term let residential properties. Additionally, there has been the threat and now the reality of the abolition of Section 21."
Wood believes that as a direct result of the constant attack on landlords, agents throughout the UK have experienced a surge in rental properties being sold. "Within our own agency the most common reason for tenants enquiring about newly listed properties, is that their landlord is selling. Approximately 10 per cent of our managed properties have been sold in the last 18 months. We anticipate this will increase to 15 per cent by the end of 2023.
"We know that from speaking to other letting agents this trend is common throughout the UK. And because the number of available properties is becoming smaller and smaller, the law of supply and demand has caused rents to increase sharply. Once again it is tenants who are having to pay the price of this badly thought through legislation," he adds.
According to Simon Davies - branch manager of Norman F Brown in Bedale, Hawes and Leyburn - the Bill has been portrayed as positive for tenants and negative for landlords.
"As ever the devil will be in the detail which unfortunately hasn't been announced yet and this is scaring landlords. Personally, I actually think there will be positive outcomes for both landlords and tenants. The main issue landlords will have will be over the scrapping of Section 21. While this sounds very scary, there will still be mechanisms for taking back possession of the property quickly, such as a sale, anti-social behaviour and if the landlord wants to move back in, and that is just for starters.