Industry News


Rental reform on the agenda as NRLA meets with PRS Minister


C


ourt reform, student lets and a proposed moratorium on notice periods came under the microscope when the NRLA chief


executive Ben Beadle met with Minister for the Private Rented Sector Jacob Young. Te National Residential Landlords Association


is committed to ensuring that the Renters (Reform) Bill retains the support of responsible landlords while allowing the Government to meet its commitments to tenants, with Beadle sharing members’ concerns – and potential solutions. Beadle asked for more detail on court reform


and how the Government will assess when the courts are ready for change, following the commitment that Section 21 will only go aſter improvements to the courts. Te Minister reinforced this position. He also reiterated the association’s calls for


an amendment to the Bill to introduce a moratorium on tenants serving notice. Tis would prevent tenants from giving two months’ notice to leave a property until aſter they had lived there for six-months. Tis follows fears that proposals currently


included in the Bill could turn the sector into ‘Airbnb lite’; with tenants able to give two months’ notice as soon as they move in. Te NRLA argues the amendment is vital if


landlords, particularly those with mortgages to pay, are to have the security they need to remain in the sector and continue to invest; concerns shared by organisations including UK Finance and build-to-rent operators Grainger, as well as the influential Levelling Up, Housing and Communities Committee. Beadle said: “It was a really constructive meeting


and a great opportunity to share with the Minister the concerns our members have and the unintended consequences of some aspects of the Bill.” “We know change will happen, but this was a


great opportunity to not only raise our concerns, but proposed sensible and workable solutions that will benefit both landlords and tenants.”


Beadle said: “It was a really constructive meeting and a great opportunity to share with the Minister the concerns our members have and the unintended consequences of some aspects of the Bill


Elsewhere on the agenda Beadle and the Minister


addressed another proposal put forward by the NRLA, calling on the Government to extend its amendment introducing a possession ground for student HMOs to other student lets. Tey also discussed how the transition from


ASTs to periodic tenancies will pan out, with Beadle urging the Minister to introduce change over a


period of three years, to minimise the impact on the supply of homes to let. He argued that allowing pre-existing ASTs


to come to end naturally would avoid the situations seen in Scotland and Wales, where similar reforms saw the Scottish PRS shrink by 6% and Welsh possession claims increase by almost 300%.


Social landlords to raise rents by up to 7.7%


Housing associations can increase rents by up to 7.7% from April, aſter the Government decided to revert to its previous rent setting formula when the cost of living cap comes to an end in March 2024. Guidance issued by the Department for Levelling


Up, Housing and Communities states that social landlords can increase rents by the consumer price index measure of inflation in the previous September plus 1%. Tis formula, set under a multi-year settlement


spanning 2020 to 2025, was suspended in 2023/24 and replaced with a fixed increase limit of 7%. Spiralling inflation would have permitted increases of more than 11% and the Government felt this was not fair on tenants. James Prestwich, director of policy and


external affairs at the Chartered Institute of Housing, said it is vital affordability for residents


12 | HMMFebruary/March 2024 | www.housingmmonline.co.uk


is “balanced” against ensuring social landlords have capacity to invest in existing housing and in building new homes. He said: ”We know social landlords wrestle with


finding this balance each year, and the current squeeze on personal incomes makes these decisions particularly difficult.” “CIH believes the imperative to invest in


homes and services does necessitate an index- linked rent increase while also calling upon social landlords to seek to provide sufficient support to those tenants hardest hit by this increase and least able to afford it.”


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