The chief executive of the National Residential Landlords Association says the Rushanara Ali scandal raises the question of whether the Renters Rights Bill is even workable in the real world of private letting.
Writing on the NRLA website Ben Beadle says: “It is not for us to comment on whether she should or should not have resigned, although I can see that her position was untenable. However, I believe questions being asked now as to whether MPs should be allowed to be landlords at all, are taking things too far.
“We are not seeking to defend the former minister’s actions, but the debacle that has unfolded in the newspapers this week arguably raises some valid and important questions about the workability of new rules and their nuances when they come into force.”
Ali – who quit as homelessness minister last week – was reported by the I newspaper to have given four months notice to four private tenants late last year, in order to sell the East London townhouse in which they had been living.
Originally put up for sale for £914,995 in November last year, the price was reduced to £894,995 in February this year. However, it had not found a buyer (and still has not) leading Ali to re-let it in the spring with the rent increasing by £700 from £3,300 a month to £4,000 – more than a 20% increase.
Beadle writes: “For an MP who has spoken out about ‘private renters being exploited’ by landlords and the Labour Government ‘empowering people to challenge unreasonable rent increases’ this is not a good look, to put it mildly.
“But it does, however, shine a light on a number of the issues we raised during our campaigning work around the new Renters’ Rights Bill and the impact it will have when it comes into force, expected to be later this year.
“While section 21, the so-called ‘no fault eviction’ will be banned under the Bill, repossessing a property to sell will be a valid ground for repossession. Under initial plans the Government had proposed a ban on landlords re-advertising properties to rent for a period of 12 months if they had been taken off the market to be sold, in a bid to stop landlords using this as an excuse to evict tenants to command a higher rent.”
This period has now been reduced to six months – although this was a House of Lords amendment, which looks likely to be reversed when the Bill returns to the House of Commons next month, ahead of becoming law.
Beadle continues: “Without speaking to Ms Ali directly it is impossible to know her motivations, but all the evidence we have read suggests she did intend to sell the property, one of two she lets out in the capital.
“The property is recorded as being listed for sale – and even reduced in price – indicating a commitment to letting it go. So, what can you do as a landlord if your house does not sell?
Surely it would be worse to let the property lie empty, not least in a city like London, which is the midst of a long term and ongoing housing supply crisis.”
You can read his full article here.
This article is taken from Landlord Today