Why the renters reform bill is an opportunity for landlords

By Sophie Mitchell-Charman, Commercial Director
Between the spectre of EPC changes, regional and local clampdowns on second homes, holiday lets, and talk of rent caps, it must often feel for landlords like they do nothing but have to consider new rules around their business.
Enter stage right: the Renters Reform Bill. Another addition to the reform of the rental market, it has been heralded as ‘once-in-a-generation reforms’ by the government, and been met with concern by the rental market.
But what does this latest legislative burden mean for landlords, and why should they view it as an opportunity for the future of their portfolios?
What the proposed reforms include
I won’t understate it, the proposed changes are massive, and I’m sure you’ve seen the headline measure about ending Section 21 – so-called ‘no fault’ – evictions.
Other measures are equally notable however, including:
- Replace Assured Shorthold Tenancies with periodic tendencies with no specified end date
- Opening up pet ownership to more tenants
- Applying the Decent Homes Standard to the private rental sector
- Landlords will no longer have a blanket ban on renting to families with children or tenants on benefits
- Establishing a Private Renters’ Ombudsman to resolve disputes between tenants and landlords
- Landlords can use reduced notice periods to gain possession of their properties from anti-social tenants.
So yes, there is a lot to take in.
The response
Needless to say for a profession that already feels like it’s under siege, the response has been mixed, with warnings floated that it may push out landlords, upset the student housing market and letting agents have voiced their concern over the abolition of section 21.
In other places though, it has been broadly welcomed as a strong first step to strengthening tenant rights and securing homes for the longer term.
In this context, landlords should see the Reform Bill not as an attack, but an opportunity.
In fact, there’s plenty of opportunity here to make investments and build a portfolio catered to the long-term needs of a country where rental demand is at an all-time high and the shortage of quality housing doesn’t look like it’s going to vanish any time soon.
This should be welcome news for landlords who can build stronger relationships with their tenants and plan for the long-term with their properties away from the churn of constantly changing tenancies.
Similarly the shock of energy prices this past winter has given us all more pause around our energy efficiency in the home and how we could save more, so we shouldn’t use uncertainty around government EPC legislation here to holt investments that modernise your properties, safeguard them against future changes and increase yields as you can pass on energy efficiencies to tenants.
What’s clear from the nature of the reforms is the government wants more long-term stability for renters.
After a year (or two, or three, or five) of uncertainty, this could be the impetus landlords need to get back into the market and build portfolios for the long-term in a new environment where tenants are looking to build their home with them.