The majority of landlords in Nottingham who responded to a survey are likely to sell their properties due to proposals in the Renters’ Rights Bill (RRB).

The East Midlands’ largest landlords association, EMPO, is warning that the resulting reduction in private rented accommodation will have a detrimental impact on the local economy as well as tenants – the people who the legislation is supposed to protect.

EMPO says that a smaller rental market, with less choice for tenants, will inevitably lead to increased rents. And as landlords sell-up, the sudden glut of properties for sale could see general house prices go down, hurting homeowners who are looking to move.

The survey of EMPO members found that all respondents had concerns about the implications of the RRB. More than 50% were considering reducing their property portfolios as a result.

The three biggest issues highlighted in the survey are:

• Abolition of No Fault Evictions (resulting in further problems & legal delays in repossessing a property when a tenant is at fault)

• Removal of Fixed Term Tenancies

• Longer time for arrears to accrue

A spokesperson for EMPO, Paul Rowland, commented:

“The results of the survey highlight some of the serious issues facing both landlords and tenants in the private rented sector. It’s very worrying to see that many landlords are likely to sell-up due to the bill.

“EMPO is not against reform to improve the system, but the current proposals offer no incentive for many responsible landlords to continue letting their properties. We believe the sector should be offering a large choice for tenants, not a smaller one.”

Paul said that the consequences of the proposals had not been fully considered. For example, it would place more demands on a court system which is already struggling to cope.

“A mass exodus of landlords leaving the market will also have a damaging effect on the local economy,”

he added.

“For example, a landlord has spent £100,000 employing local tradespeople to improve his properties. Looking to the future, that’s potentially a huge amount of local business which will be lost.”

On the issue of rent arrears, Paul said:

“The mandatory threshold for rent arrears is being increased from two to three months and the notice period has been doubled to four weeks. That’s potentially up to 16 weeks in total – it’s not sustainable.”

EMPO is also concerned about a new clause in the bill which bans landlords from requesting advanced rent, other than for the initial period. This could be detrimental to tenants who, for example, have a poor credit history or don’t have a guarantor.

Paul added:

“EMPO is committed to supporting landlords to help them deal with these issues and ensure tenants have greater choice, not less. That means encouraging and supporting responsible landlords to stay in the sector and continue to provide quality housing.” 

Based in Nottingham, EMPO is a not-for-profit organisation that works to support and represent the needs of the private rented sector across the East Midlands.

For more information about EMPO visit www.empo.co.uk