The UK Government’s Impact Assessment of the Renters (Reform) Bill, published recently, has revealed that the expected annual cost of the proposed reforms to landlords will be only £10, a mere 0.1% of average annual rents.
The report compares this figure with the median wealth of buy-to-let landlords which stands at £942,000, far exceeding the £286,600 average wealth of all households, and £33,100 for renters.
The Renters (Reform) Bill, introduced on 17th May but yet to receive its Second Reading in the House of Commons, promises significant non-monetised benefits for tenants, including better health, enhanced wellbeing and productivity due to the provision of more stable, long-term tenancies, and improved housing quality.
Tenant advocacy groups such as the Renters’ Reform Coalition have been urging the Government to accelerate the legislation given the current crisis facing renters in their housing security, and have called for the Bill to be strengthened.
The Bill, which has been subjected to a persistent lobbying effort by landlord organisations aimed at reducing and delaying the proposals, would abolish the contentious Section 21 ‘no-fault’ evictions, introduce indefinite tenancies and a new landlord possession regime, implement a Private Rented Sector Ombudsman and Property Portal, and grant renters the right to rent with pets.
The Impact Assessment also indicates that similar reforms in Scotland, implemented in December 2017, did not result in landlords leaving the industry en masse.
Furthermore, the potential exit of landlords unable to meet their responsibilities could benefit the sector, paving the way for more professional, tenant-focused landlords to replace them.
Tom Darling, campaign manager of the Renters’ Reform Coalition said: “The Impact Assessment shows that the costs to landlords of the basic protections for tenants in the Renters (Reform) Bill are negligible.”
He added, “There is a crisis facing renters and the lack of progress on this important legislation is very concerning.”
Darling urged the Government to disregard lobbying from landlord groups, push the Bill forward, and improve tenant protections.
