Kensal Rise & Queens Park, 69 Chamberlayne Road, London, NW10 3ND
Kensal Rise & Queens Park, 69 Chamberlayne Road, London, NW10 3ND
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89% of landlords expect to raise rents in the next 12 months 

Nearly half of buy-to-let landlords in the UK intend to increase rents ahead of the incoming Renters’ Rights Bill, according to new research by Landbay. The survey found that 44% of respondents plan to raise rents as a direct response to the legislation.

Landlords with mid-sized portfolios are among the most likely to act. Of those citing the Renters’ Rights Bill as their reason for increasing rent, 32% own between four and 10 properties, while 28% hold between 16 and 30. Regionally, properties in the South East are most at risk of rent rises, followed by those in the North West.

These rent increases, which are being implemented in anticipation of the bill, average around 6%, equating to an additional £74 each month. This sits well above the current private rental inflation rate of 3.6%, based on figures from the Office for National Statistics.

Under the new rules, landlords will be restricted to one rent increase per year, and only up to the market rate, the amount a property would fetch if newly listed. Tenants will have the right to challenge rent increases at a first-tier tribunal if they believe the rise surpasses market value.

The move to raise rents ahead of the legislation is partly a response to concerns about the cost impact of upcoming changes. Many landlords remain wary of proposed reforms, especially the scrapping of Section 21, which currently allows them to evict tenants without stating a reason. In an earlier Landbay survey, 75% of landlords voiced concerns about losing this option and the potential difficulty of managing problematic tenants.

 

The outlook over the next year remains challenging for renters. The survey showed that 89% of landlords plan to increase rents in the coming 12 months. More than one-third intend to raise rents by between 3 and 10%, while only 11% said they have no plans to implement any increases.

“This sharp rise in rents in the short term shows the unintended consequence of this new regulation, as landlords look to act now and pre-emptively raise rents in fear of future cost implications or difficulties and to protect their investments," comments Landbay's sales and distribution director Rob Stanton (pictured). "By forcing the hand of landlords in this way, there is a real risk of worsening the cost-of-living crisis that so many private renters are currently facing."

He added, “Any good and reasonable landlord will agree with protecting the rights of tenants, but they also believe that the rights of the property owner should be protected too. There’s no doubt we need to balance reform with support and safeguards for landlords to make sure that the rental market continues to play the important role it does in the UK’s housing mix. 

"While we may not be able to influence government policy or regulation, our role as a BTL lender is to ensure our product range is competitive and delivers exactly what landlords need – whether that’s for purchases or refinancing.”

"Any good and reasonable landlord will agree with protecting the rights of tenants, but they also believe that the rights of the property owner should be protected too"

 

 It may be just the first days of June but some politicians are already agitating for a winter eviction ban.

Green Party Member of the Scottish Parliament Maggie Chapman has made an unsuccessful bid to include such a ban in the Housing (Scotland) Bill, currently going through the Scottish Parliament.

It would have prevented landlords from evicting renters between November and March.

In 2022, the Scottish Greens – then part of the Scottish government – imposed such a ban on private landlords.

Now Chapman tells the media in Scotland: “It is shameful that the Scottish Government has voted against a winter evictions ban. While we may be approaching summer with the coldest months ahead far from our minds, for people at risk of homelessness, the threat of a winter without a roof over their heads is real and fast approaching.

“Every winter, too many people and families are kicked out of their homes, sometimes for unwarranted reasons by landlords who don’t take their obligations seriously.

“We live in an era of sky-rocketing rents, high utility bills and low wages that don’t keep pace. The cost of living crisis is still very much with us. Renters need protections just as much as they did when inflation was at its height.

“But instead of giving renters more rights, the Scottish Government has made it clear that it is on the side of landlords. 

“It has favoured the wealthy over working people, which will only serve to deepen inequality and put more people at risk of homelessness.

“I will bring these important protections back at [a later stage] of the Bill, giving the Government and opposition parties the chance to protect people and their families facing crisis, and help to ease the ongoing housing emergency in Scotland.”

Council officers patrolled the streets of north London son over the weekend to identify and take action against unlicensed landlords.

The law states that every landlord who rents out a property in Brent must have a licence, except for properties located in Wembley Park. 

Council officers went door-to-door across targeted areas, checking whether properties were free from serious health or safety hazards and taking enforcement action against unlicensed landlords.

“This law exists to protect people from landlords who put them at risk by ignoring safety standards, cramming too many people into one home, or failing to carry out essential repairs” says Councillor Fleur Donnelly-Jackson,responsible for housing in the borough.

“Every landlord in Brent is legally required to have a licence to rent out their property. This law exists to protect people from landlords who put them at risk by ignoring safety standards, cramming too many people into one home, or failing to carry out essential repairs. 

“We know that poor housing conditions can be extremely stressful and harmful to people’s health and wellbeing. No one should have to live in damp, overcrowded, or dangerous conditions while their landlord looks the other way. 

“That’s why we’re using targeted intelligence to focus our patrols on streets where we suspect landlords are renting without a licence. This is about protecting our residents and making sure landlords take their responsibilities seriously. 

“Responsible landlords play a vital role in providing quality homes and helping to ease the housing crisis – we won’t let rogue landlords ruin the reputation of those doing the right thing. 

“If you’re a landlord in Brent and you’re breaking the law, we will find you and you will face prosecution and hefty fines.” 

Earlier this month two brothers were fined £20,000 and put on the rogue landlord database after failing to get licensed as landlords. 

Officers found 15 people crammed into a seven-bedroom property when they turned up at the home in Ilmington Road, Kenton, following a tip-off from a neighbour. 

The Parliamentary diary now shows that the so-called Committee Stage where the Renters Rights Bill is examined in detail will continue in the Lords until May 14.

There are three additional committee dates in total – May 6 and 12 as well as May 14 – although it is possible that not all of those dates will be required.

Once this stage is concluded later this month, the Bill is expected to rapidly complete its passage through the Lords and then return to the Commons. 

Both Houses must agree on the exact wording of the Bill

A Bill may go back and forth between each House until both reach agreement – however, the Commons is very much in charge, especially with the government’s substantial majority, and the Bill is expected to be passed well before MPs begin the summer recess on July 22.

Much of the Lords committee’s time is spent considering amendments, such as these supported by the National Residential Landlords Association:

  • Allow landlords to use the new student possession ground in all student homes, not just HMOs;
  • Introduce a minimum six month tenancy period;

 – Improve the new rent increase process by allowing the Valuation Office Agency (VOA) to filter out spurious challenges of fair rent increases;

  • Safeguard landlords if the tenant does not pay the initial rent after the tenancy is signed; 
  • Review the impact of the Renters Rights Bill on the private rented sector. 

However, even if the Lords do vote to include these amendments, they will still need the support of the government when the Bill returns to the Commons.

Propertymark says that if the Bill is enacted in its current un-amended form, it will require substantial changes to how agents and their landlord clients operate, including:

  • Section 21 evictions will be abolished, meaning agents will no longer serve no-fault notices. Instead, landlords must rely on revised grounds for possession (e.g. for rent arrears or misconduct), so agents will need to guide clients through the proper legal processes for regaining possession when necessary;
  • Open-ended tenancies: Fixed-term tenancies are being replaced by a new periodic tenancy regime. Letting agents will need to adjust tenancy agreements and advise both landlords and tenants on the implications of open-ended tenancies – for instance, how landlords can regain possession under the new rules and how tenants can give notice;
  • Rent increase safeguards: Stronger protections against unfair rent increases are part of the Bill’s aim. Agents may only be able to raise rents once per year under the proposals, and excessive increases could be challengeable. This will require agents to implement compliant rent review practices and keep clear records to justify changes;
  • Private Renters’ Ombudsman and Portal: All landlords will be required to join a new private rented sector Ombudsman scheme and register their properties on a new digital Property Portal . In practice, letting agents are likely to handle these registrations and membership obligations on behalf of landlords. Agents should prepare for additional administrative duties to ensure every tenancy is registered and any disputes can be resolved through the Ombudsman;
  • Higher property standards: The Bill extends the Decent Homes Standard to private rentals , meaning minimum standards for property condition will be enforced. Agents will need to work with landlords to carry out any necessary improvements and ensure properties meet the required standards (for example, regarding safety and state of repair) before letting them out.
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