A recent report by the Social Market Foundation (SMF) is challenging the prevailing winds of concern among landlords. Their message is clear: the apprehension surrounding stricter regulations, including the potential ban on Section 21 ‘no-fault’ evictions, might be much ado about nothing.
The heart of the SMF’s findings lies in a comparative study with other nations, revealing that England is lagging when it comes to protecting tenants. The prevalent short-term tenancies, coupled with the ease with which landlords can evict tenants without stating a reason, leaves English renters in a precarious position. This, the SMF argues, puts them at a significant disadvantage compared to their international counterparts.
A Tough Deal for Renters
Niamh O Regan, a researcher at the SMF, paints a grim picture of the situation for English tenants. “English renters get a bad deal,” she asserts, pointing out the shortcomings of fixed-term tenancies and the risks associated with no-fault evictions. The lack of effective enforcement mechanisms, thanks to underfunded councils and a disjointed dispute resolution service, only exacerbates the issue, allowing subpar landlords to thrive unchallenged.
O Regan advocates for reforms that would extend tenancies and enhance tenant protections, arguing that such changes are essential in a society where long-term renting is becoming increasingly common.
Dispelling the Exodus Myth
A key point of contention around the proposed reforms has been the fear that they would drive landlords away from the rental market. However, the SMF calls this concern “overblown,” citing the experience of Scotland, where no-fault evictions were abolished in 2017 without a subsequent drop in rental supply. This stands in stark contrast to claims by the Scottish Association of Landlords about a significant decrease in available rental properties.
The report, aptly titled “Let Down,” explores alternatives that have proven successful elsewhere. Both Scotland and Ireland have embraced indefinite tenancies, offering renters a much-needed sense of stability. In Ireland, such legislative changes have even led to a doubling of the private rented sector.
Simplifying Dispute Resolution
Beyond tenancy reforms, the SMF proposes an overhaul of the rent dispute system. Currently, tenants navigating complaints must deal with a maze of jurisdictions, a process that the think tank finds unnecessarily complicated. Drawing inspiration from systems in Australia, New Zealand, and Ireland, the report suggests the establishment of a unified point of contact for all rental disputes.
Additionally, the SMF recommends the introduction of mandatory landlord registration. This measure aims to ensure landlords adhere to basic standards and help deter unsavoury practices.