A housing system will only work if it respects all stakeholders. That’s the view of Sim Sekhon, Managing Director of Legal for Landlords, who was politely expressing his frustration at comments made by Michael Gove in a recent interview with the BBC’s Laura Kuenssberg.
During the interview, the Housing Secretary committed to outlawing no-fault evictions by the as-yet-unknown date of the next election. However, only a matter of weeks ago, the Government announced that the proposed ban on Section 21 evictions would not be implemented until the backlog of cases and delays in court proceedings had been addressed. So far, there is no evidence of progress on that front.
Sim Sekhon, Legal for LandlordsDoubts about Gove’s promises led to debate in the upper house. Is it possible that the judicial system can overhaul its practices and procedures, clear the outstanding caseload and permit landlords the six-month adjustment period promised – all within a period that, at its very longest, is less than a year? The scale of the task is huge and shouldn’t be underestimated. For context, the LegalforLandlords casebook includes many where landlords have already been waiting over a year for resolution.
Is Section 21 the landlord’s last resort?
There has been an increase in landlords seeking to use the existing provisions of Section 21 – the so-called no-fault option – to regain possession of their properties. While it makes a good headline to see this increase as being due to unscrupulous landlords wanting to ‘punish’ a tenant who has asked for repairs or to push up the rent, Sekhon says this applies to just a small percentage of cases. As he pointed out, with possession hearings taking so long to conclude, landlords would incur significant losses rather than stand to gain.
MORE COMPLEX
The real reason for the increase is more complex. According to Sekhon, it is grounded in a lack of respect for landlords and the challenges they face. They are expected to do far more than provide decent, safe housing, but the current system does little to protect them and their interests. Faced with an ever more restrictive market, they are choosing to leave – and hoping they can do so before the Renters’ Reform bill is passed into law.
An unbalanced, unfair system?
Sekhon is a landlord himself with considerable understanding of the property rental sector. He believes that some housing commentators and charities have forgotten that housing, whether owned or rented, is a market. Furthermore, he believes what’s happening now, is that one stakeholder in the market – the tenant – is getting protections that are denied to landlords.
As an example, he cites a recent demand from the Law Society of England and Wales that all tenants facing eviction should be given housing legal aid. ‘Where,’ Sekhon asks, ‘is the corresponding demand for support for a landlord whose tenant is playing the system, and who has received no rent for over a year?’
Political promises or realistic plans?
There is no doubt – and on this, Sekhon agrees – that some renters are struggling to find affordable accommodation and the security and stability they need. Rents are rising because of a combination of housing shortages and interest rate rises. Coming on top of cost-of-living pressures, it is a challenging time. Homeownership is no longer an option for many – indeed, those in Generation Z expect to rent long-term. With a dearth of social housing, the private sector is the only option. And that is why it has to work.
But the Renters (Reform) Bill isn’t a magic bullet. It won’t fix the system. It could, in fact, make it harder for renters to secure a tenancy as landlords will be increasingly selective about who they allow into their properties.
Sekhon is adamant that the private rental market will only work when all stakeholders are treated fairly.
HELP THE RENTAL SECTOR
Sekhon says: “The government should help the rental sector not stifle it further to crowd please and win votes. We need landlords and should be incentivising them. If we give them a fair chance, the country has the opportunity to solve some of the issues. We don’t need confusing timescales and politically motivated promises from our Housing Secretary. We need a realistic, grown-up conversation and a strategy for housing that all stakeholders can support.”
