Renters' Right Bill: 'I've sold my flat before new bill becomes law'

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Patricia Ogunfeibo has rented out properties since 1986

"I would really like to come out of being a landlord," says Patricia Ogunfeibo.

The 61-year-old has just sold a two-bedroom flat in south-east London, one of her nine properties.

She is one of many landlords selling their properties ahead of the new Renters' Rights Bill - one of the biggest overhauls of the private rental sector.

Once the bill becomes law, the government will ban Section 21 "no-fault" evictions, give tenants greater rights to challenge rent increases and make it illegal to discriminate against prospective tenants on benefits.

Ms Ogunfeibo says "landlords are scared" of some of the changes due to come into effect.

The government says the bill will provide tenants with "greater security, rights and protections in their homes".

The proposed changes have been widely welcomed by renters including Natasha Johnson, who was evicted through the Section 21 clause in 2020 and says it was "traumatic".

Among some of the changes in the Renters rights bill, the government wants to:

Ban Section 21 "no-fault" evictions, where landlords can evict tenants without a reason

Allow tenants to challenge unfair rent increases

Make it illegal to discriminate against tenants on benefits or with children

Stop bidding wars, so tenants do not pay over the advertised price

Allow tenants to request pets

Ms Ogunfeibo is selling a two-bedroom flat in south-east London ahead of the Renters' Rights Bill

Ms Ogunfeibo, who has rented out properties since 1986, says by selling the flat she was "able to get out the money" she had put into it.

She says she accepts that parts of the law are needed, including a Private Rented Sector Database to help landlords understand their legal obligations and demonstrate compliance.

But she is concerned that the bill will ultimately push rents up.

"We need more affordable homes in the UK at the moment," she says.

"What we don't need is the private rental sector being contracted because landlords are scared and they're selling up and they're leaving the sector."

This time last year the Property Franchise Group, which is behind brands including Hunters, Fine & Country and EweMove, was managing 153,000 rental homes for landlords, but that has fallen to 150,000 at the last count.

Meanwhile, data from real estate agency Knight Frank showed the number of new lettings properties coming to the London market in the year to August was 8% below the previous 12-month period.

"Whilst landlords will take into account many factors when deciding future investment plans, including tax and energy efficiency policies, the bill will play a major part for many in deciding their futures" says Chris Norris, chief policy officer for the National Residential Landlords Association.

"Given this, amidst a lack of rental housing to meet demand, it's vital that the bill has the confidence of responsible landlords every bit as much as tenants."

He said it was key that courts had the capacity to process legitimate possession cases swiftly when Section 21 ends.

According to a survey of 821 landlords in May 2021 by the flat rental website SpareRoom, small landlords are more likely to exit the market than professional landlords.

According to the data, four in 10 UK landlords with one to two rental properties say they plan to leave the market compared with 22% of those with five to nine properties and 26% of those with more than 10 properties.

But according to SpareRoom, so far, supply in the room rental market remains largely unaffected by the Renters' Rights Bill with January 2025 the highest month for flatshare ads in four years.

Natasha Johnson was evicted through Section 21 in 2020

The Renters' Rights Bill will introduce a new system giving new tenants a 12-month "protected period" where they cannot be evicted if the landlord wants to move in or sell the property.

Landlords can still get rid of tenants for other reasons including criminal behaviour by the tenants.

After the first year, landlords would have to give tenants four months' notice to leave, doubling the current time period, and provide a specific reason for ending a tenancy.

The move is "welcome news" for Ms Johnson, who was evicted with her teenage son from their rental property in 2020 in the middle of the Covid pandemic.

She now campaigns for others in a similar situation through the London Renters Union (LRU).

"No-one should be able to go through that," she said.

"We're human beings. Some form of communication, compromise. It was really really traumatic. I wouldn't wish that on my own enemies."

She said she and her teenage son moved from shelter to shelter, and even spent one night on the street.

"The child still needs to go to school, you still need to prepare breakfast. You still need to try and be strong for that person. It eats away at your mindset, your mental health."

The LRU wants more protections for tenants in the capital

The LRU says ending Section 21 is a "big victory for tenants everywhere but soaring rents will continue to force many out of their homes and communities".

Jae Vail, a spokesperson for the union, said: "Every person deserves a secure home where they can build a life without living in fear of eviction for challenging mistreatment or because their landlord seeks higher profits."

However, he said tenants would "not have real security without rent control".

"Rent control would keep prices down and keep communities together," he said.

"Yet the government continues to side with the rich while ordinary people pay the price for our rigged housing system. It's time to put people's lives before landlords' portfolios."

'Level the playing field'

A Ministry of Housing, Communities and Local Government spokesperson said the Renters' Rights Bill remained on track to become law this year.

They said it was a "manifesto commitment and legislative priority" for the Labour government, and the bill's "transformational powers" would be implemented swiftly after it becomes law.

"The bill will level the playing field by providing tenants with greater security, rights and protections in their homes, and including abolishing Section 21 evictions and rightly empowering tenants to directly challenge excessive rent hikes and poor conditions," the spokesperson added.

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