The proposals aim to improve the rental sector but just one in five investors supported the idea, according to a survey by Nationwide’s buy-to-let arm The Mortgage Works (TMW).
Many landlords are concerned they could be left vulnerable to difficult tenancies and more than half said they would be more particular about the tenants they accept. This is especially the case among landlords with portfolios of more than 20 properties – nearly a third (32%) said that they would sell up if Section 21 was scrapped.
The idea of a landlord register garners more support, with two thirds in favour. However, half don’t believe the move would have any impact on deterring rogue landlords. That rises to two thirds (66%) of landlords with 20 or more properties.
Big backing for Decent Homes Standard
The Decent Homes Standard was a firm winner among investors, with more than eight in 10 supportive. More than two thirds believe their properties already meet the new standard. Meanwhile, a third say they would put up rent to meet the new benchmark.
Dan Clinton, director of landlord at The Mortgage Works, said: “We believe everyone should have a safe, secure and comfortable home, which is why we are committed to improving standards within the private rented sector. The proposals outlined in the Government’s white paper should serve to have a positive impact on housing quality and conditions for tenants.
“While landlords appear to be largely in favour of a National Landlord Register and Decent Homes Standard, it is revealing that one in four would consider selling in the event of Section 21 being abolished. This highlights the importance of listening to landlords’ concerns as these policies take shape, particularly when considering the broader set of regulatory changes already affecting them.
“A mutually beneficial private rented sector needs to offer tenants the security they will not be evicted without good reason, yet also provide landlords the confidence they can gain possession of a property quickly and efficiently if something does go wrong, such as anti-social behaviour. As a buy-to-let lender, we are keen to understand how the changes will be implemented, to ensure we fulfil our role of helping to balance the needs of landlords as well as tenants.”
