BREAKING PROPERTY NEWS – 12/10/2022
Daily bite-sized proptech and property news in partnership with Proptech-X.
Generation Rent: Ditching tenancy reform is a big mistake
The Times reported that “Ministers are … discussing shelving legislation drawn up by Michael Gove, Clarke’s predecessor, to ban no-fault evictions. One government source said it was not considered a priority by the new administration and would be delayed. Another said the government wanted to scrap the measure entirely even though it was a manifesto commitment.”
Polling by the Renter Reform Coalition and Opinium found that the central proposed reform, “Requiring landlords who want to evict a private renter to first prove their reasons for doing so”, had the support of 79% of the public, including 80% of 2019 Conservative voters.
Polling by Public First for Onward in July found that private renters reform was the second most popular policy of the government, in terms of what policies the new Prime Minister should keep, with 60% net approval, compared with 66% for levelling up.
Commenting on the report, Alicia Kennedy, Director of Generation Rent, said:
“No-fault evictions mean that families can face the disruption and upheaval of moving home and often schools with just two months’ notice. It means unscrupulous landlords can bully tenants into accepting shoddy conditions or unaffordable rent increases. It means that renters have to raid their own savings in order to move home at their landlord’s whim.
“This law has no place in modern society and getting rid of it has rightly been government policy for more than three years. Ministers have stuck by it through a general election, three Queen’s Speeches, and a pandemic, and finally this summer we got a package of reforms which had the broad support of the whole sector.
“It is one of the most popular items on the government’s agenda and there’s barely anything left to do but publish the Bill and pass it. The government will be shooting itself in the foot if it ditches the reforms at this point.”
LettingaProperty.com Highlights Importance of Tenant-Landlord Communications
Online lettings platform lettingaproperty.com has called on tenants and landlords to focus on the value of open communication in the current economic climate. 89% of adults in Great Britain reported that their living costs rose in August 2022, according to government research, with tenants and landlords alike impacted by spiralling food, energy and other prices. Shawbrook Bank, meanwhile, reports that 85% of renters have made changes so that they can cope with the increasing cost of living.
Renters worrying about paying their bills or their rent can feel reluctant to raise their voices, but the team at lettingaproperty.com are encouraging them to do just that.
“Communication is key when it comes to finding solutions to economic hardship. By opening-up dialogue, preferably early in the process, tenants and landlords can work together to find the best way forward.
The lettingaproperty.com team has long advocated the value of communication. During the pandemic, they encouraged tenants and landlords to talk, helping to reduce fear and misunderstanding by promoting open, honest dialogue. The team facilitated conversations while leaving landlords and tenants in control. They also offered support by facilitating payment plans during the Covid crisis, with around 30 of the company’s 1,500 landlords putting these in place to avoid their tenants going into default.
Jonathan Daines, Founder and CEO, lettingaproperty.com: “There is much that we can learn from the pandemic and apply to supporting both tenants and landlords under current economic conditions. Recognising the value of speaking out is the first step in working together to solve issues before they escalate. Tenants who raise worries about finances or talk to their landlords about how to cut energy use may find unexpected solutions to their concerns. It’s definitely good to talk.”
lettingaproperty.com is currently in the process of launching a new rental platform, which will facilitate further communication between tenants and landlords. With 64% of respondents saying a global recession is “somewhat likely” in 2023 and that the outlook for the global economy has “darkened”, according to the World Economic Forum, communicating and working together to find solutions will likely become increasingly important over the months ahead.
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