Is Corbyn declaring war on landlords? London Property Newsletter - January 2018
Happy 2018! Here’s what we’ve got coming up:
- Should we be worried if Corbs gets in?
- All the latest need-to-know news.
- Top tool: How much of your area is built on?
Is Corbyn declaring war on landlords?
If Jezza is still leader at the next General Election, he wants to make it a manifesto pledge to end “no fault” evictions in England and Wales. “No fault” evictions relates to Section 21 of the 1988 Housing Act; it allows you (the landlord) to give your tenants a legal notice that you want to take the property back once their lease has ended – and that they need to be out – by a certain date. You also need to give them at least two months’ notice.
Removing “no fault” evictions means that if your tenants don’t do anything illegal, they have indefinite tenure. If they’re persistently late with the rent or always causing damage – but never quite to enough of an extent to get an eviction order in court – you’re stuck with them.
Scotland has already abolished “no fault” evictions, and Corbyn thinks it’s the way to go here, too. But is it really?
He cites “retaliatory evictions” as a main reason for getting rid of Section 21 – i.e. tenants refuse to accept a rent rise, or they’re just being a bit difficult, so landlords kick them out and leave them to the streets. But, well, under the Deregulation Act 2015, we already have rules against retaliatory eviction. What’s more, most landlords would far prefer good tenants to stay longer than faff around with Section 21s, re-listing the property and finding new tenants – all for a few extra quid a month.
So what will Section 21 achieve? Here are a few potential outcomes:
- Investors will start to give up on private rented accommodation because the lack of control over their properties is too offputting.
- As a result, the supply of rental housing will decrease, pushing up prices for tenants.
- Properties will get shabbier because landlords will have no motivation to do them up.
We hope someone points this out to JC (that’s our final nickname, promise) before he considers it any further.
A few bits and pieces this month…
Barking & Dagenham is now the only London borough where average property prices are below £300k. But that won’t be the case for long…
Six factors influencing the UK property market in 2018. Do you agree?
Indian buyers pouring money into expensive London property. And it might all relate to changes in the Reserve Bank of India’s regulations of how much money can be taken out of the country.
The property rich list 2017: London street where average home costs £17m named most expensive in England and Wales. Can you guess which street?
Our useful tool of the month
How much of your area is built on? For the first time, you can find out at the click of button exactly how the land is used in your local authority area.
And when it comes to the UK as a whole, would you have ever have guessed that only 6% of land is built on – and more than half is farmland? Nope – us neither.
The end! (Until next month.)
See you in Feb!