Leading Think Tank Calls For Rental Reforms
The Institute for Public Policy Research (IPPR) is calling for changes to laws that would bring into consideration the needs of both tenants and landlords to balance things out. Among the calls are the scrapping of fixed-term contracts for private tenants and for an end to landlords being able to evict tenants because they intend to sell the home. A recent report published by IPPR makes several proposals.
Many private renters up and down the country are in a somewhat uncertain position right now because with the way the law is currently written, they could be evicted once a shorthold tenancy comes to an end. The power is with the landlords, who can evict tenants through a Section 21 notice. The IPPR would like to see some of the uncertainty removed by preventing landlords from selling up within three years of commencing a tenancy agreement, which is a move they believe would provide stability and peace of mind to renters.
When evictions are unexpected, it can have a devastating effect on the tenant. A worrying statistic states that tenancies being ended by the landlord accounted for more cases of homelessness than any other reason in 2017.
Support for Landlords
There are also proposals to better support landlords, many of whom have a very small portfolio of just one or two properties to manage. Larger landlords might need support in managing their portfolio with CRM for property management. Companies like Property Deck provide a CRM for property management that can take a lot of the hard work out of managing a suite of properties and their tenants.
The IPPR would like to see a review of the taxation relating to landlords in the private rental arena, which is something they believe would promote a more stable sector with longer-term agreements.
For more information relating to property, whether it is from a tenant or landlord perspective, visit The Housing Ombudsman.
The private rental sector is growing quickly in a trend that has been evident over the last 20 years. Now, as many as one in five households falls into the sector, with many not looking to buy and preferring longer-term rental agreements. Reforms must look after their needs, but they must also allow the agreements to be profitable for the landlord.