Vital news for landlords in the Queen’s Speech

Thursday 19th December 2019 Queen's Speech has been delivered in Parliament, including vital news for landlords;
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Accompanying the Queen’s speech, on Thursday 19th December, 2019, the background briefing notes give important details for landlords as to the future.

It includes a positive message on the hot topic of gaining possession of property, in light of the now confirmed plan to scrap Section 21.

The measures outlined will only apply in England, with Scotland, Wales and Northern Ireland having responsibility for their own housing policy.

The Renters Reform Bill

Within the Renters Reform Bill it has been confirmed that Section 21 of the Housing Act 1988 will be removed, thus stopping ‘no fault’ evictions.

However, directly following this announcement comes the reassurance landlords have been looking for, as the Conservatives pledge to give:

“…landlords more rights to gain possession of their property through the courts where there is a legitimate need for them to do so by reforming current legislation. In addition to this we will also work to improve the court process for landlords to make it quicker and easier for them to get their property back sooner.”

Mr Johnson’s party also plans to introduce lifetime deposits for tenants, removing the need for renters to save up for a deposit each time they move.

Overarching aims for the PRS

Cleaning up the Private Rental Sector from landlords and agents bringing the industry into disrepute and plans for improving standards are focused on within the paper.

The Conservatives plan to improve:

  • The rogue landlord database
  • Security for tenants, through protection and powers
  • Affordability for tenants, through the lifetime deposit proposal
  • Living standards and give tenants right to redress where property falls short on health and safety
  • Professionalism within the sector (both amongst landlords and lettings agents, the latter to the benefit of tenants and landlords alike)

Andrew Turner, chief executive at Commercial Trust welcomed the reassurance provided to landlords:

“There has been a lot of concern over the removal of Section 21.

“Whilst landlords have been made to be political scapegoats for some time now, the reality is that not all problems in the sector lie on the side of the landlord.

“Many decent landlords are held over a barrel by tenants falling far short of their obligations on paying rent, upkeep of property and reasonable behaviour.

“Being able to secure possession of their property, where renters are breaking the terms of their tenancy agreement, is vital.

“I am pleased that this has been addressed by the government and hope that its implementation is smooth and successful.”

For full details you can read the Queen’s Speech December 2019 – background briefing notes here.

This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.