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hi5lo5

End of Section 21?

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The details are still unknown the guardian claiming that govt is planning for a consultation. I rather hope the govt goes to proceed with a bill.

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From said Guardian article:

"David Smith, the policy director of the Residential Landlords Association, said changes would lead to more cautious investment in buy-to-let properties from landlords and prospective lenders."

Yep. It's going to be very interesting when many of these guys come to remortage: falling prices, rents going down, Section 24, etc. And fewer new entrants to the market too. 

RIP HPI

https://www.theguardian.com/society/2019/apr/15/short-notice-evictions-face-axe-in-tenant-rights-victory?CMP=share_btn_link

 

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37 minutes ago, Sausage said:

BBC News - No-fault evictions to be banned in England
https://www.bbc.co.uk/news/uk-47927706

Bring it on.

Quote:

But an organisation representing tenants said the plans were "a vital first step to ending profiteering from housing".

 

Or more correctly, cough, HTB, cough......

But an organisation representing tenants said the plans were "a vital first step to ending profiteering from housing, unless you're a Tory donor"

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Absolutely a great news for renters. Abolishing S21 will affect more EAs than LLs. S21 was a backdoor for the EAs to pass the tenant fee ban in the form of rent increases when an AST comes to an end.

It would be very interesting to see how the lenders price In this risk on the BTL lending.

 

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How has the government made sure that LL's won't front run the changes by evicting before the changes come into law? I assume the reason for an embargo on the news was to make the change enforceable somehow from midnight?

 

Otherwise is the rental market about to witness a mass of section 21 notices?

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It’s a consultation at the moment.

All over the news. TalkRadio just had the RLA on saying it was a bad thing (obviously worded such that they cared about the tenants).

The end of S21 should ease pressure on councils as the low end of renters on HB won’t be so often back on their doorstep.

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7 hours ago, Lambie said:

Embargoes are off..

Good news, another stake in the heart of the vampire landlord.

https://www.generationrent.org/government_will_scrap_section_21

I just heard tis on the radio.

I did see the post about he Welsh thinking of banning S21.

England removing S21 is huge, seriously.

You only have to look back to start of IO BTL to see the work Arla put into getting this odious .rule  into law - by the Labour government. IIRC - remember IO BTL did not start until late 90s.

When IO BTL was limited to young adults, living in a rental then you *sortof* make a case for it.

However, IO BTL loons and their banks rolled out so much credit there are no millions of families with kids in IO BTL properties.

Whilst the courts may sortof allow an adult with no deps be kickedout, the chances of of a family with kids being kicked out of a rental are now very very very slow and very very very expensive.

This kills IO BTL as the bank no longer can easily repo the house, which was why ARLA made such a big fuss about getting S21 in place.

Again, the likes of NW and CovBS had no clue to the risk of IO BTL. Previously it was just commcerial risk that the IO BTL banks did not price in.

Now theyve failed to grasp the political risk of IO BTL.

Tough.

Effectively IO BTL are now in default.

Expect CovBS and NW to be  going under.

 

 

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You can thank Brexit for this, it has brought the tories to the brink of collapse and they are now having to consider what was unthinkable just to keep Labour from the gates. It was inevitable given demographics  anyway but it has greatly accelerated the process whereby the Tories have to court renters.

I do not think it is coincidence at all that this has been announced after the same weekend polls came out showing labour would win a general election.

Edited by LetsBuild

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11 minutes ago, 17clarence said:

It’s a consultation at the moment.

All over the news. TalkRadio just had the RLA on saying it was a bad thing (obviously worded such that they cared about the tenants).

The end of S21 should ease pressure on councils as the low end of renters on HB won’t be so often back on their doorstep.

It didnt sound like that.

It sounded like an emergency law being brought in.

Any idiot bank with a large IO BTL that is not having an emergency meeting and sending out lots of repo letters and cranking up its BTL SVR is nuts.

 

 

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All grist to the mill,

Lets hope they follow the Scottish model which has been in place since 2017.

https://www.gov.scot/policies/private-renting/private-tenancy-reform/

Key elements;

  • Open-ended tenancies
  • Rents can't go up more than once a year and you must get at least three months' notice of any increase
  • Referral of rent increase to a rent officer, who can decide if they're fair
  • If you've lived in a property for more than six months, landlords have to give 84 days' notice
  • Meaningful arbitration for wrongful termination orders which can award up to six months' rent in compensation
  • Possible caps on rents

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Might as well annouce removal of the last bit of releif on IO BTL too.

Then look at brining some more taxes and impose more captial requirements on IO BTL mortgages - 100% would do me,.

 

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Main feature on R4 Today.

The presenter seeks prepared for this - questions fed, sides sorted ... but person doing the pitch is really well prepared.

Yo quote @Bland Unsight

'Sell everything'

IO BTL LL and banks should have listened 4 years ago.

 

 

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Obviously this is good news, but Labour make an intelligent point about rent increases being used as an S21-like tool:

Quote

the shadow housing minister, John Healey, said the government must also protect against landlords forcing tenants out by stealth.

“Any promise of new help for renters is good news but this latest pledge won’t work if landlords can still force tenants out by hiking the rent,” he said. 

https://www.theguardian.com/society/2019/apr/15/short-notice-evictions-face-axe-in-tenant-rights-victory?CMP=share_btn_link

The legislation will need some mechanism to prevent landlords from increasing the rent 10-fold in order to force the tenant out.

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1 hour ago, hi5lo5 said:

Absolutely a great news for renters. Abolishing S21 will affect more EAs than LLs.

My thinking too...

Countrywide share price is currently about to crash to new lows - down 5.6% so far today.

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43 minutes ago, spyguy said:

It didnt sound like that.

It sounded like an emergency law being brought in.

Any idiot bank with a large IO BTL that is not having an emergency meeting and sending out lots of repo letters and cranking up its BTL SVR is nuts.

 

 

My understanding (I'm not in the inner circle, but was aware Friday this was happening) section 21 is no longer, it's the wording of the section 8 changes that will enter consultation now.

I'm guessing if you issue S21 today it's worthless. 

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Which is it? Have they acted to prevent section 21 being issued or have they just announced that they're going to sit around and talk about one day doing it. If the latter, then landlords will front run the change and evict now. Anyone know for sure?

--

https://www.mirror.co.uk/money/section-21-changes-full-landlords-14314727

"today we’re acting by preventing these unfair evictions. Landlords will still be able to end tenancies where they have legitimate reasons to do so, but they will no longer be able to unexpectedly evict families with only eight weeks’ notice. "

" As part of a complete overhaul of the sector, ministers have today outlined plans for a consultation to abolish Section 21 evictions – so called ‘no-fault’ evictions. "

 

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1 hour ago, spyguy said:

I just heard tis on the radio.

I did see the post about he Welsh thinking of banning S21.

England removing S21 is huge, seriously.

You only have to look back to start of IO BTL to see the work Arla put into getting this odious .rule  into law - by the Labour government. IIRC - remember IO BTL did not start until late 90s.

When IO BTL was limited to young adults, living in a rental then you *sortof* make a case for it.

However, IO BTL loons and their banks rolled out so much credit there are no millions of families with kids in IO BTL properties.

Whilst the courts may sortof allow an adult with no deps be kickedout, the chances of of a family with kids being kicked out of a rental are now very very very slow and very very very expensive.

This kills IO BTL as the bank no longer can easily repo the house, which was why ARLA made such a big fuss about getting S21 in place.

Again, the likes of NW and CovBS had no clue to the risk of IO BTL. Previously it was just commcerial risk that the IO BTL banks did not price in.

Now theyve failed to grasp the political risk of IO BTL.

Tough.

Effectively IO BTL are now in default.

Expect CovBS and NW to be  going under.

 

 

I've personally been furious that Nationwide which is a mutual has been in bed with BTL.....the head of nationwide has been running NW like a for profit bank....isn't the whole point of a mutual to be a "not for profit".....? And the original point of a BS was to aid members into property ownership...the man is a charlatan....intent on becoming the new Northern Rock......i presume CovBS is the same...i'm not up on them...BTL and esp IO BTL should be pure poison for a Building Society...and against all they stand for....

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30 minutes ago, TopBanana101 said:

My understanding (I'm not in the inner circle, but was aware Friday this was happening) section 21 is no longer, it's the wording of the section 8 changes that will enter consultation now.

I'm guessing if you issue S21 today it's worthless. 

If this is true, that’s amazing. No warning, S21 just revoked? 

As mentioned by others, the Tories must really be panicking now about the loss of younger voters. 

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