Rental Reform: High Level Support for NRLA Plans

Housing Secretary Michael Gove has committed to taking anti-social behaviour in the PRS seriously, with NRLA proposals for changes to rental reform plans given the backing of an influential Government committee. Here, in his regular column for Property Notify®, NRLA chief executive Ben Beadle explains more.

More than two years ago the Government announced plans for widespread changes to the way the PRS operates.

The well publicised Renters’ Reform Bill is yet to be published, with the NRLA working tirelessly behind the scenes to represent members, highlighting flaws in the proposals and – more importantly – potential solutions that can benefit landlords and tenants.

We have been clear from the outset that landlords must have confidence in any new system for it to work.

This campaigning is now paying off, with the Levelling Up, Housing and Communities Select Committee recommending the Government make a number of radical changes to its proposals in line with our suggestions, to support landlords and their businesses.

The cross-party group, which is chaired by Labour MP Clive Betts is recommending:

A shake-up of the court system before any changes to possession notices are made,
PRS student tenancies to be treated by Government as the same way they propose to handle the Purpose-Built Accommodation Sector,
The reversal of the freeze on Local Housing Allowance rates,
A full review of landlord tax, something we have also called for in our budget submission.

I have also met with the Housing Secretary Michael Gove this month to outline the proposals in full – securing a commitment to taking a hard line on anti-social behaviour, one of our key campaign asks.

In what was a major coup for the organisation I was invited to Whitehall to meet the Secretary of State and discuss our recommendations in more detail – which shows that the message is getting through to those that count and are responsible for making the decisions on the future of the sector.

In our own Shadow white paper ‘A New Deal for the Private Rented Sector’ we have outlined sensible, workable solutions to what we saw as obvious issues within the Government’s proposals.

Last year I gave evidence to the Select Committee making it clear the association is not in any way ‘anti-reform’, but that – having an in-depth knowledge of the sector and the way it works – I could see stumbling blocks that could have potentially devastating consequences for some landlords’ businesses.

I was delighted to see that the committee took this warning seriously, with the NRLA racking up 73 references in the report, significantly more than any other campaign group.

What does the full report say?

In summary, the report:

warns courts reform is needed and calls for the development of a specialist housing court -something that has been a main pillar of NRLA campaigning,
stresses matters relating to rent arears or anti-social behaviour require a swift response from the courts,
advises anti-social behaviour should be a mandatory ground for possession – without the need for a criminal conviction,
recommends student tenancies should be exempt from plans to make every tenancy open ended, to avoid hitting supply of homes, or pushing up rents,
calls for the reversal of the Local Housing Allowance rate freeze, to ensure benefit payments cover average rents, again, another NRLA call.

It also demands a review of recent tax changes on the buy-to-let market, explicitly stating this is with view to making the PRS ‘more financially attractive to smaller landlords’ – something the NRLA has been campaigning for, for a long time, and that comes as music to my ears.

This call has been echoed in our submission to Government ahead of next week’s budget – and is vital if we are to meet the increasing demand for rental homes.

PRS landlords provide a vital role in providing safe, affordable places to rent to more than 11 million tenants and I am the delighted the committee has recognised the need to protect them.

What happens next?

Now the recommendations have been finalised and the report published, it will be forwarded to Ministers, who will make the final decision as to whether to adopt the proposed changes.

The Government has yet to announce when the Renters’ Reform Bill itself will be published, but keep an eye on our news site and social media channels for any updates.

To read the report in full please click here.