Third of landlords will sell if no-fault evictions end: Mortgage Works | Mortgage Strategy

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Almost a third of landlords say they will sell properties if the government goes ahead with its plans to end no-fault evictions, according to the Mortgage Works.

Around 32% of landlords with large portfolios of 20 or more properties say they will sell all or some of their homes if Section 21, or no-fault evictions are ended, reports Nationwide’s buy-to-let lender. This figure slips to 25% among smaller landlords.

The proposals are part of a package of reforms in the Fairer Private Rented Sector white paper published by the Department for Levelling Up, Housing and Communities in June.

The government says the legislation will “fundamentally reform the private rented sector and level up housing quality in this country”. It also plans to create a landlord’s register and a decent homes standard in the private rented sector.

The buy-to-let lender’s poll found just 22% of landlords supported the move to abolish no-fault evictions, which it says left “many landlords concerned they could be left vulnerable to difficult tenancies, despite such evictions being the biggest single cause of homelessness in England”.

It found that if no-fault evictions were abolished, 56% of landlords say they will be “more particular about the tenants they accept”. Among landlords with larger portfolios, this rises to 62%.

However, 62% of BTL owners support a national landlord’s register, while 32% oppose the idea.

The poll adds: “Part of the lack of support may be because more than half of landlords, or 53%, do not believe introducing a national landlord’s register will have any impact in deterring rogue landlords. That rises to two-thirds, or 66%, of landlords with 20 or more properties.”

Also, 83% of landlords supported the creation of a decent homes standard to cover private rental properties. More than two-thirds, or 68%, added they believed their properties already meet the proposed new standard.

Among landlords that need to undertake work to bring their properties up to the proposed standard, 56% say they will use their savings to fund the project. However, 33% say they will put up their rents in order to improve their properties if the minimum standards are ushered in.

The Mortgage Works director of landlord Dan Clinton says: “While landlords appear to be largely in favour of a national landlord register and decent homes standard, it is revealing that one in four would consider selling in the event of Section 21 being abolished.

“This highlights the importance of listening to landlords’ concerns as these policies take shape, particularly when considering the broader set of regulatory changes already affecting them.

“A mutually beneficial private rented sector needs to offer tenants the security they will not be evicted without good reason, yet also provide landlords the confidence they can gain possession of a property quickly and efficiently if something does go wrong, such as anti-social behaviour.”


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