Leading property sector figure Kate Faulkner (pictured) has called for a reset of the private rented sector, away from ineffective rules and regulations.
She points to a lack of social homes taking one million homes out of the PRS as the root problem and believes introducing RoPA (Regulation of Property Agents) to stop bad agents and landlords would make a difference, as well as updating the AST agreement.
She told the Letting Industry Council’s latest meeting: “We need a new, fair contract. The Renters’ Reform Bill won’t change anything – we’d be better off stepping back and starting with a different agreement.”
Faulkner also suggests making repair insurance standard for landlord insurance and allowing pets in all social and council homes as a way to produce data and reassure private landlords.
David Smith (pictured), a JMW property lawyer, believes the Bill will be a “bit of a damp squib” when it’s finally published – probably before 25th May – and that the government has very little intention of bringing anything in except Section 21.
“The Renting Homes (Wales) Act shows how hard it is to do – that’s why I think the Bill won’t have a lot in it,” he says. “Wholesale reforms are really hard to pull off.”
However, Landlord Action’s Paul Shamplina (pictured) told the meeting that the great landlord exit was already happening, due in part to the impending panic around Section 21 being abolished.
His company had seen a 25% increase in phone inquiries this year, a 41% increase in the number of Section 21s served in March compared to March 2022, and a 91% increase in the number of Step 2 Section 21s (accelerated possession claims) issued at court.
Meanwhile, it saw a 56% drop in Section 8 instructions. “Clearly, landlords are going for Section 21 as they just want their property back and will write off rent arrears,” says Shamplina.
