Renters’ Bill Modification Could Make Landlord Quit After Recent Major Rental Reforms And Tax Increase 

The Government’s approach to landlords introducing the renters’ bill with major rental reforms and recent tax increases, will “dampen” the attractiveness of allowing properties and could cause some to quit the sector, official assessments say.

Renters’ Bill Modification Could Make Landlord Quit After Recent Major Rental Reforms And Tax Increase (PHOTO: The Negotiator)

The Renters’ Bill

The Renters Bill was introduced to Parliament on 17 May 2023 and currently, the housing department has impacted the assessment of Michael Gove’s Renters  Bill stating that the ruling will bring extra costs for landlords, some or all of which may be passed on to tenants in the form of higher rent.

The Telegraphy reported that it worries among landlords that government measures, including the legislation, might cause the discouraging investment in recent homes to be rented out, and are likely to add to problems among some Conservative MPs who have accused the Government of appearing “anti-landlord”.

The Renters’ Bill, which also eliminates Section 21 “no-fault” evictions, pushes more landlords to quit the sector as they are also clutched by rising interest rates.

The impact assessment produced by Gove’s leveling up and housing department states that Landlords will mostly offset some of the prices of the regulation through rental price increases though there is a possibility that some may be inclined to leave the private rented sector if they are incompetent to recover some of the costs incurred through raising rents.

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Landlord May Cost £17 Annually Per Rented Property

Renters bill assessment claims that measures will only cost landlords £17 annually per rented property, or 0.2 percent of mean annual rents in England, which would be mitigated by benefits worth up to £17.

Last year, the National Landlords Association accused Jeremy Hunt, the Chancellor, of inflicting an “effective further tax hike” on landlords when he reduced the annual threshold for capital gains tax starting £12,300 to £6,000 from April 2023.

The Renters Bill, introduced to Parliament in May, will outlaw fixed-term tenancies and introduce rolling contracts across the private rental sector. It will also introduce new rights for tenants to have pets in their homes.

Several tenants may also face a lack of housing security and quality that is damaging health, well-being, educational attainment, productivity, and families’ ability to put down roots and invest in their local communities.

The Department for Levelling Up, Housing and Communities spokesperson said the Bill would produce a better deal for renters and landlords and ban section 21 ‘no fault’ evictions so that tenants have greater security in their homes and make it easier for landlords to get rid of anti-social tenants.

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