Latest news with #NRLA
Telegraph
27-06-2025
- Business
- Telegraph
Landlords on the hook for ‘thousands' after Labour's rent reforms U-turn
Landlords face paying hundreds of pounds to fix property damage caused by tenants' pets after a Labour U-turn. A tabled amendment to the Renters' Rights Bill has reversed a previous pledge to allow landlords to require tenants to take out insurance to cover pet damage. The legislation, which is passing through the Lords, will ban 'no-pet' tenancies. This means landlords will have to accept renters with pets unless they have a good reason not to. Angela Rayner had promised that landlords would be able to require tenants with pets to take out insurance. The Housing Secretary previously said that this would mean 'no one is left unfairly out of pocket'. However, the amendment, tabled this week by Baroness Taylor on behalf of the Government, would reverse this commitment. Chris Norris, of the National Residential Landlord Association (NRLA), said the about-turn had 'betrayed' landlords, who risked having to pay out 'hundreds or even thousands of pounds' to repair damage, as deposits are capped at five weeks' rent. He added: 'I can't fathom why the Government won't allow the landlord to take an extra deposit if they have a pet. It's now illegal for [landlords] to do that. 'This would be cheaper than insurance for the tenant and they would get it back if their pet does no damage, and give landlords reassurance.' The average claim on home insurance for pet damage is £225 per incident, according to research by price comparison site Compare the Market. The most common mishaps included ripped or stained carpets, damage to sofas, skirting boards and doors, and broken ornaments. Greg Tsuman, of estate agency Martyn Gerrard, said removing the option to require pet insurance was a 'prime example of an ill-thought-through policy' that would inevitably push up rents. He added: 'Once again, landlords are being penalised for trying to strike a fair balance between accommodating tenants and protecting their investments. 'If landlords can't offset risk, they'll build it into the base rent. The inevitable result? Higher starting rents and a market distorted by forced assumptions that every tenant will come with a pet in tow.' The Renters' Rights Bill has been dubbed the biggest overhaul of rental law in 30 years. It will end fixed-term tenancies, stop landlords from taking action against non-paying tenants for up to three months, and ban bidding wars by requiring landlords and letting agents to publish an 'asking rent' for the property. The legislation will also eliminate Section 21, otherwise known as 'no-fault evictions', for all new and existing tenancies from next summer. Instead, landlords will need to rely on Section 8 to evict a tenant, a piece of legislation undermined by long court delays. The Bill had been expected to become law this summer, but delays in the parliamentary process mean it is now not expected to gain Royal Assent until the autumn. The Government's Employment Bill has also been pushed back. Critics of the Bill have warned that it could lead to a rise in rents, as landlords sell up and flee the sector amid tougher conditions and dwindling profits. One in three landlords are now looking to sell off some or all of their rental properties, according to the latest English Private Landlord Survey, with just under two thirds blaming recent changes in legislation. Ben Beadle, chief executive of the NRLA, said: 'This is a shoddy and outrageous way to make law. 'Yet again the Government simply expects responsible landlords to shoulder even greater risks without any consultation about the likely impact.' A Government spokesman said: 'Our landmark Renters' Rights Bill will bring long overdue fairness to the market and deliver much-needed reforms to the system. 'It is only fair that tenants are given the same choice to keep a pet as homeowners, and landlords will remain protected from the cost of any damage caused by pets through their existing deposits.'
The Independent
21-06-2025
- Business
- The Independent
Could Angela Rayner's squeeze on landlords hurt the very people it's supposed to help?
On the face of it, Angela Rayner's Renters' Rights Bill has some benefits – not least that Section 21 no-fault eviction notices will be scrapped, giving tenants more security. But experts are now warning that, as part of Labour's reforms currently making their way through parliament, landlords would be prevented from re-listing their properties as rentals for a year if they try – and fail – to sell up. Which, therefore, also means they'll have to forgo rent for a year. Failed sales are not unusual – and with the latest Rightmove stats on the housing market, things are looking especially bleak for homeowners in London and the South East. If they are forced to hold onto their property under these new provisions, not only will they as landlords be out of pocket, we'll end up with even more empty properties gathering dust. Right away, you can see the problem: Britain already has too many of those and this may lead to an even bigger shortage of housing during what the National Rental Landlords Association (NRLA) describes as 'an unprecedented supply and demand crisis'. Indeed, the organisation puts the number of empty properties in the rental sector at roughly half a million in England alone, using data from the government's English Housing Survey. 'We are concerned that the government does not recognise the risk that the number of empty homes in the private rented sector may substantially increase if this proposal passes into law,' says Meera Chindooroy, the trade body's deputy director of campaigns, policy and public affairs. So, has the government lost the plot? Not quite. I can see the method in Rayner's apparent madness. Let me explain… The problem with the private rental market is that the balance between tenant and landlord has been out of whack for too long. The current system, which allows for tenants to be booted out with a couple months' notice at the end of a year's tenancy, can leave them in a horrible jam if the owner decides that it's time to book a quick profit when the property market gets hot. Rayner's policy aim with the bill is to create a situation where this doesn't happen because most landlords will be professional – in it for the long haul, rather than hobbyists who buy themselves a flat or two to fatten up their pensions. The re-listing ban is an explicit attempt to make landlords think very carefully before putting their properties on the market. It makes that option a risky move for them. Other provisions included in the Bill that the NRLA describes as 'the biggest change to renting in over 30 years' include a protected 12 months at the start of a tenancy, where a landlord will be barred from evicting a tenant for the purposes of selling. As also mentioned, there will be the abolition of Section 21 notices, better known as 'no-fault' evictions. A national database for the private rented sector will be created, and there will be an ombudsman to handle disputes. Landlords will no longer be able to discriminate against families or benefit recipients – nor will they be able to create bidding wars. Some of these policies were first mooted by Michael Gove, when housing was part of his portfolio. And while the current chancellor Rachel Reeves introduced a 5 per cent 'second home' stamp duty surcharge, the drive to professionalise the sector began with former Tory chancellor George Osborne. He restricted the tax relief residential landlords could claim on mortgage interest payments to the basic rate of 20 per cent. These measures ramped up costs for the small fry and many left the market as a result. As you can see, there has been a degree of cross-party consensus on the need for reforms aimed at improving life for private sector tenants, who are often left feeling as if they're lost in a swamp with no map and no mobile phone reception. As a package, the reforms should, in theory, improve life for them. If an owner is in it for the long term, the renter can make a home of their tenancy, as often happens on the continent. Needless to say, a long term tenant could also improve life for the landlord, because they will likely be more inclined to look after the place (if you've ever been house-hunting, the ex-rentals stand out – and not in a good way). However, at this point I feel obliged to trot out one of those old sayings: 'The road to hell is paved with good intentions.' You don't help renters if you end up with fewer properties on the market. Constricting supply will inevitably add rocket fuel to rental prices, which are already too high. According to the quarterly tracker by Rightmove, the average advertised rent of homes outside of London rose to a record £1,349 in the first three months of the year. London, meanwhile, recorded its 14th consecutive record, with monthly rents increasing to £2,698. It is true that Rightmove noted a (welcome) increase in supply, but that doesn't mean there isn't still a shortage overall. There are some good things in Rayner's reform package. But facts are facts and markets are markets – and if she squeezes landlords too hard, she will hurt the market and end up squeezing tenants – the last thing anyone wants, least of all her. Banning rents for a year after a failed attempt to sell is a measure that demands a rethink, however well-intentioned.
Telegraph
20-06-2025
- Business
- Telegraph
Landlords could be forced to forgo rent for a year under Labour reforms
Landlords could be forced to forgo rent for up to a year under Labour's rental reforms, experts have warned. A provision in Angela Rayner's Renters' Rights Bill, which is just one parliamentary vote away from becoming law, will stop landlords who put their homes on the market from relisting properties as rentals for up to a year if they fail to sell. With as many as a third of house sales falling through, it could leave thousands of potential rental properties locked out of the market. So-called 'Section 21' notices – also known as no-fault evictions – will be banned, and all tenancies will be on a rolling basis with no fixed end date. The Bill will stipulate that landlords can only repossess properties in four circumstances: if they're looking to sell, if they're looking to move in, or if there is redevelopment or if the property is seized by a mortgage lender. Other grounds include if tenants fail to pay the rent on time, although landlords will have to wait longer to evict for this reason. Chris Norris, chief policy officer for the National Residential Landlords Association (NRLA), said: 'Whilst we understand the Government wants to prevent abuse of the new tenancy systems, the country cannot afford to have homes standing empty for months on end. 'Around a third of property sales fall through before completion, mostly as a result of problems faced by the buyer. 'Given the scale of the housing crisis, it cannot be right that homes will be left empty for many months even when landlords are not to blame when a house sale fails to progress.' Nathan Emerson, chief executive of Propertymark, said that the new rules will mean that 'landlords must provide at least four months' notice to a tenant should they need or wish to sell their property. In addition, there will also be an initial 12 months 'protected interval' at the start of any tenancy where a landlord is prevented from evicting a tenant for the purpose of selling. Further to this, should a landlord choose to sell the property in question, they will be restricted from re-letting that property for a period of 12 months after evicting the tenant, should the property not sell'. Mr Emerson added: 'This may in some circumstance cause a degree of property vacancy, in an already pressurised situation where supply is greatly required.' Many of the reforms included in the Bill were first mooted by Michael Gove, the former Conservative housing secretary. But the original legislation said landlords would have to wait three months to relist a property that had been put on the market, rather than a year. Landlords have repeatedly warned that the more stringent rules will push them out of the market, eat into margins and make letting out properties unprofitable. In March, the number of UK properties available for rent hit an all-time low of just 284,000 – 23pc lower than during the pandemic, when the market dried up. Tax credits on mortgage interest for landlords were gradually slashed between 2017 and 2020, down from 40pc for higher-rate taxpayers to a flat rate of 20pc. Interest rates leapt, with buy-to-let mortgages at the sharper end of the increases – squeezing landlord profits even as rents rose. In Rachel Reeves's maiden Budget, an extra 5pc stamp duty surcharge was introduced on additional property purchases. Housing charities said that the delay of a year was necessary in order to stop the backdoor return of 'no-fault' evictions. Ben Twomey, chief executive of Generation Rent, said: 'It's right the Government will outlaw arbitrary Section 21 evictions through the Renters' Rights Bill. This change can't come soon enough. 'If landlords are concerned about a property sitting vacant, they are free to sell with sitting tenants.' A Ministry of Housing, Communities and Local Government spokesman said: 'Our landmark Renters' Rights Bill will bring long overdue fairness to the market by making sure it is unprofitable for landlords to evict a tenant and deprive them of their home, just so they can rent to new tenants at a higher price.'
Telegraph
15-06-2025
- Business
- Telegraph
Landlords face higher EPC bills as Labour's reforms kick in
Landlords could be forced to fork out hundreds more for energy performance certificates (EPCs) from Sunday as new rules come into force, experts have warned. Under reforms, energy assessors will be expected to use a new data collection system, raising the price of certificates to up to £250 each. The more stringent criteria could also mean that properties could drop an EPC band, experts said, making them impossible to let under rules set out by Ed Miliband, the Energy Secretary. Under the new methodology, assessors will be required to inspect the size, frame type and glazing of every window in the house more thoroughly, as well as recording any extractor fans and blocked chimneys. Chris Norris, of the National Residential Landlords Association (NRLA) property body, warned that the price of an EPC certificate, which typically costs between £50 and £120, could rise by £20 this summer as a result of the changes. He said: 'It's reasonable to assume that it will take assessors longer to take more precise measurements and input more specific data, so price rises are inevitable.' However, Sean Horton, of mortgage adviser Respect Mortgages, said the more intensive assessments could increase the price of certificates 'to £150-£250 easily'. He added: 'The window measurements alone are crackers. Instead of just noting 'typical double glazing,' assessors now need to measure each window individually, record orientations, frame types, glazing gaps, ages, draught proofing – the lot. 'That's going to make each assessment much longer, with the cost passed on to the landlord.' From 2030, all rental homes must have an EPC score of at least C, while landlords accepting new tenants will be expected to achieve the required standard by 2028. The plans are championed by Mr Miliband, who said it was a 'Tory scandal' that Britain's poorest households were living in 'cold, draughty homes', adding that 'many rent from private landlords, below decent standards'. But Anna Moore, of retrofit company, Domna, warned that the new system would likely result in many homes dropping an EPC band. She said: 'In particular, the model changes how electric heating systems are scored, intended to solve the problem of people installing heat pumps and then seeing their EPC go down. 'The new model also lowers the 'default assumptions' on carbon emissions in traditionally heated homes, so many properties will see their EPC drop. 'For example, a 1960s 90m² home, with empty cavity walls, might drop five points from EPC D to EPC E.' Labour is due to replace the beleaguered EPC system entirely with the much-anticipated Home Energy Model, following years of consultation. Among other changes, the reforms are expected to favour homes with the 'capacity to integrate with smart technology', which some fear will penalise homeowners who refuse a smart meter. Mr Norris, of the NRLA, said: 'When the Home Energy Model launches, the increases could be significantly more, depending on the outcome of the expected consultation into their methodology. 'While it is difficult to predict, it would not be unreasonable to expect that prices could double.' Kundan Bhaduri, of the Kushman Group real estate firm, said: 'For portfolio landlords, this is death by a thousand clipboard checks. 'Costs will rise sharply, and worse still, homes that previously scraped a C rating could now drop to a D, dragging us into yet another regulatory penalty zone. And this is just the warm-up act before the even more chaotic Home Energy Model arrives.' Many landlords are expected to sell up ahead of the changes, while others will be forced to spend thousands of pounds insulating properties or installing heat pumps to meet the required grade. Labour has floated a spending cap of £15,000 per property, and on Wednesday, Chancellor Rachel Reeves confirmed £13.2bn worth of funding for insulation upgrades. However, there are fears the cost of green improvements will ultimately be passed on to tenants in the form of higher rents. Research by Swedish bank, Handelsbanken, revealed 92pc of UK-based landlords believe tenants would pay more for greener homes. Tom Darling, of campaign group Generation Rent, urged the Government to impose rent caps on landlords who accept grants for eco upgrades. He said: 'With so many renters in fuel poverty, it's vital the Government is trying to make homes easier and cheaper to heat through higher energy efficiency standards. 'However, these plans must take place alongside amendments to the Renters' Rights Bill to protect renters from eviction and rent rises where public money has been used to improve a property. These grants aren't there for landlords to turn a dime off of.' A government spokesman said: 'Everyone deserves to live in a warm, comfortable home. We're investing £13.2bn in the Warm Homes Plan to upgrade five million homes over this Parliament, cutting energy bills for good through new insulation, solar panels and heat pumps. 'These long-planned changes make EPC assessments more thorough, giving people a clearer picture of how energy efficient their home is.'
The Independent
04-06-2025
- Business
- The Independent
Landlords say homes energy efficiency schedule is ‘detached from reality'
The Government's plan to improve the energy efficiency of all private rented homes is 'detached from reality', landlords have warned. The proposed timeframe for requiring all properties to meet a higher efficiency rating is 'simply unrealistic' largely due to a shortage of tradespeople to carry out the work, the National Residential Landlords Association (NRLA) said. The Government's consultation on the plan, which aims to cut bills and emissions to deliver a statutory fuel poverty target, closed last month. It proposes that all privately rented properties must meet a minimum efficiency standard C, rather than the current required rating of E, by 2030. The NRLA said that while landlords support the overall objective, the Government must rethink its implementation process. Under the Government's current timeline, the new minimum efficiency standard, which will be set against new metrics, will be confirmed in late 2026, with a view to it applying to all new tenancies by 2028 – and all tenancies by 2030. The NRLA said this could give landlords less than two years to upgrade more than 2.5 million rented homes that it estimates do not currently meet the new energy performance standard. It also said ministers have not explained how the 'extensive' works will be funded. In its response to the consultation, the NRLA cited research by the Kingfisher group, the owner of brands such as Screwfix, B&Q and Tradepoint, which estimated there will be a shortfall of 250,000 skilled tradespeople in the UK by 2030. The NRLA proposed an adjusted implementation plan which requires landlords to meet specified standards relating to the fabric of the building, such as improved insulation, by 2030. All landlords should then meet secondary standards relating to smart meters and efficient heating systems by 2036, it said. NRLA chief executive Ben Beadle said: 'We want all private rented properties to be as energy efficient as possible. However, tenants are being sold a pup with timelines that are hopelessly unrealistic. 'The idea that millions of homes can be retrofitted in less than two years is detached from all reality, not least given the chronic shortage of tradespeople the sector needs to get the work done. 'Noble ambitions mean little without practical and realistic policy to match.' In its annual report in 2024, the advisory Committee on Fuel Poverty said: ' Failure to make rapid progress in the private rented sector on energy efficiency will fundamentally undermine any Government strategy to end fuel poverty.' A spokesperson for the Department for Energy Security and Net Zero said: 'Everyone deserves to live in a warm home, which is why we have recently consulted on plans to require private landlords to meet higher energy performance standards. 'These plans could lift up to half a million households out of fuel poverty by 2030, while also making renters hundreds of pounds better off. 'We have also announced plans to train up to 18,000 skilled workers to install heat pumps, fit solar panels, install insulation and work on heat networks.'
