Michael Gove at the National Conservatism Conference in London on Tuesday. Photo: Getty Images Europe/Leon Neal
Michael Gove launches crackdown on renegade homeowners after warning that there aren't enough houses in Britain to put people on the property ladder.
The right to evict tenants without proving what Any fault, so-called Section 21 notices, will be abolished in the Tenants (Reform) Bill, which is presented to Parliament on Wednesday.
However, critics will see this as yet another attempt by the government to tie the hands of landlords.< /p>
Writing for The Telegraph, Mr Gove, Secretary of Commons, argued that the change was only intended to counter a «minority» of landlords who mistreat their tenants.
In exchange, increased protection will be provided landlords who want to relocate tenants to sell the property, provide housing for a relative, or because of the tenants' antisocial behavior.
The new law is an attempt to improve standards in the UK private rental sector, which has doubled since 2002. Now 11 million people live in rented housing.
Other changes will include digitizing the litigation process and appointing a new ombudsman to speed up dispute resolution for both landlords and tenants.
Tenant Reform Bill: 10 Key Changes
Speech at the National Conference on Conservatism Wo Tuesday, Mr. Gove touched upon another problem in the British real estate market — the lack of housing stock.
Mr Gove said: "There is a problem, and the problem is that there are simply not enough houses in this country, it is getting harder to climb the corporate ladder.
“We really need to think about the offer, but we also need to think about how we can help people, especially young people, in this increasingly competitive market, get the first-buyer support they need.” #34;
Mr Gove also said the increase in immigration has put «inevitable pressure on housing and utilities.» It is predicted that net migration will soon reach around 700,000 people a year, twice what it was before the Brexit referendum.
1205 Total net migration in the UK
Mr Gove used his article in The Telegraph to prove that the reforms are an attempt to suppress a minority of poor homeowners, rather than a broader attack on people who rent out houses.
Mr Gove wrote: «A small proportion of landlords mistreat tenants, using the threat of eviction to silence complaints of low standards and demand extortionate rent increases.
& #34;These renegade landlords, although also a minority, are damaging the reputation of the private rental sector, which should be celebrated for the choice and service it provides.»
He added: «Providing tenants a better future also depends on the support of the vast majority of good landlords.”
Some real estate experts say that an indirect consequence of the new reforms may be that homeowners decide to sell their property. they've been renting as it's getting harder to evict tenants.
Andy Shepard, chief executive of London real estate agency Dexters, said: «This could push people away from the market, and the unintended consequences of that will be pushing rents up.»< /p>Buy-to-rent repression
The bill is the government's latest move to crack down on buying to let, which began in 2015 when George Osborne, then chancellor, announced that mortgage tax credits would be eliminated.
This action was canceled between 2017 and 2020. This means that landlords holding property in their own name still have to pay tax even if their property is making a loss. This scenario is becoming more common due to high interest rates. .
On top of that, in 2016 the government introduced a 3 percentage point stamp duty on anyone who buys additional property. Plans to introduce minimum energy performance certification targets will also attract investors for bills up to £10,000 per facility.
Landlords are constantly selling. But those leaving the sector are also now facing higher costs after Chancellor Jeremy Hunt cut tax-free capital gains.
The Conservatives have promised to ban Section 21 notices, known as no-fault evictions. , in their 2019 election manifesto following criticism, they were used to unfairly expel honest tenants.
The use of this mechanism has skyrocketed in recent years, with almost 20,000 households receiving a Section 21 notice last year, more than doubling more than the number in 2021.
Other changes in the new legislation include applying a «decent housing standard» to the private rental sector for the first time, and prohibiting landlords from completely banning renters from receiving benefits or having children.
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