Fixed-term tenancies for private renters should be scrapped. Landlords should also stop evicting tenants just because they want to sell their homes. These are just two of the reforms called for by leading thinktank, the Institute for Public Policy Research (IPPR) in a recent report.
Under the law as it stands, without giving a reason, private landlords can issue a ‘Section 21’ eviction notice to tenants whose assured shorthold tenancy has ended. This puts millions of private renters in the UK in a precarious position, says the IPPR, as they never know when they may be forced out of their home. The thinktank is calling for increasing security for tenants through an ‘open tenancy’ and wants to prevent landlords from selling in the first three years of a tenancy agreement, giving renters greater peace of mind .
There is no doubt that for many renters, the PRS is insecure. Around one in 10 tenancies comes to an end because the landlord has terminated them through a no-fault eviction. Tenancies ended by landlords were the biggest cause of homelessness in England in 2017, accounting for almost a third of all local authority homelessness acceptances.
The IPPR believes tenants face unaffordable rents, poor conditions, a lack of tenure security and limited control over their rented home. In response, among other things, the thinktank wants to see changes to recent welfare reforms to help struggling tenants and a national landlord register to help drive up standards in the rental market.
Tenants undoubtedly stand to gain from these proposals. But are they fair to landlords? The majority of landlords in the UK own just one or two buy-to-let properties. Many are ‘accidental’ landlords who have inherited a property and may be renting it out simply until they can make a profit by selling it. Most take their responsibilities seriously and many are happy to offer their tenants a well-maintained home for as long as the arrangement suits both parties. The property they rent out is theirs – why shouldn’t they be able to take it back if they want to?
The IPPR agrees that landlords need to be treated fairly. It proposes that the Government should launch a review of all taxation relating to private landlords. Reforming the tax system would promote socially responsible landlordism and a long-term, high quality and stable rented sector as well as challenging wealth inequality, says the thinktank.
There is no doubt that private renting causes hardship for many, especially those on benefits. However, the PRS has grown substantially in the last two decades. It is now home to 20% of households and many more people expect to rent for longer. If it is to continue to thrive and to provide high quality homes for more of us each year, any reforms that are put forward must take into consideration both the profitability and the rights of landlords as well as those of tenants.