Renters' Reform Bill: An opportunity for landlords to review their portfolios

Guy Coggrave, Managing Director, GSC Grays, looks at how The Renters' Reform Bill could offer landlords the opportunity to review their portfolio and consider if their properties and business objectives fit with the government's proposed legislation.

Related topics:  Landlords,  Portfolio,  Renters Reform Bill
Property | Reporter
30th May 2023
To Let 722
"For some, now may be a sensible time to restructure or exit portfolios making the most of the current relatively low capital gains tax position"

For many landlords, now may be an opportune moment to look at restructuring their portfolios or consider alternative investment opportunities.

The changes are not expected to come into force until 2024 and the intervening time gives landlords time to seek professional advice to understand the likely impact of the Bill which will abolish a landlord’s right to impose a no-fault eviction, see changes to the term, rent, and rent review process, and will introduce a two-tier system of fines and criminal offences for the main areas of landlord compliance.

The Bill will be implemented when it receives Royal Assent and will have two stages with the government expected to provide at least six months’ notice of the first implementation date after which all new tenancies will be periodic and governed by the new rules. When the second implementation date is set, all existing tenancies will also be governed by the new rules.

Guy explains: “Landlords should be reviewing their portfolios and making sure under the proposed legislation that their properties can comply, deliver a reasonable return on investment, and still meet their objectives.

"For some, now may be a sensible time to restructure or exit portfolios making the most of the current relatively low capital gains tax position, which many well-informed commentators believe is likely to increase, particularly if we have a change of government.

"Being equipped with the correct professional advice will give landlords the opportunity to review the value of their property and consider other options such as restructuring their portfolios or investing elsewhere such as in commercial property. For those remaining in the sector, having the right management systems and advice will be essential."

It is important to note that while this is still a white paper, the Government says it stands firm on its commitment to push this through to legislation.

Felicity Buchan, Under-Secretary for Levelling Up, Housing and Communities: “The Government have a manifesto commitment to abolish section 21, (which allows landlords the right to impose no-fault evictions) and we will do so as soon as parliamentary time allows.”  

With a general election expected in 2024, that time could be fast approaching.

More like this
Latest from Financial Reporter
Latest from Protection Reporter
to our newsletter

Join a community of over 20,000 landlords and property specialists and keep up-to-date with industry news and upcoming events via our newsletter.