The British Property Federation has called for proper investment in the UK courts and eviction processes to support upcoming tenancy reform.
It has released a detailed response to the government’s initial proposals for a Renters’ Reform Bill, ahead of the white paper expected in the coming months.
The long-awaited reform of tenancy law will see section 21 “no fault” evictions abolished and the strengthening of section 8 repossessions.
Reform will have a large impact on the emerging build-to-rent sector when it comes to managing disruptive tenants, but also in setting lease lengths in ASTs.
The BPF said it is supportive of reform but added that it will require “significant modernisation and digitalisation of our courts” with funding in the upcoming comprehensive spending review.
It said: “If investment is to be protected it must be delivered hand-in-hand with government investment into the courts to ensure property owners and managers can deal quickly with a tenant who is proving to be disruptive, displaying anti-social behaviour and upsetting neighbours.”
The BPF has also recommended the reform retains fixed-term tenancies, while also streamlining and improving the grounds for repossession, taking lessons from recent reforms in Scotland. It said a new system must clearly set out the responsibilities for local authorities and owners to help resolve anti-social behaviour.
Government must ensure that investors have access to properties for refurbishment to help them achieve targets such as improving minimum energy efficiency standards, the BPF said.
It supports the idea of a landlord register but said any scheme must be enforceable and added that the government should continue to rule out controversial rent controls.
Ian Fletcher, director of real estate policy at the BPF, *(pictured) said: “The key aspect of reform for property owners will be the courts, which are not fit to support the government’s ambitions at present.”
Fletcher said it is “unacceptable that court users rely on a system that in large part still operates with paper and can often involve happenchance as to whether a court official will be on the other end of a telephone”.
He added: “It will be hugely disappointing if the government seeks to deliver reform without the requisite investment to make it work properly.” Failure to create a new system that works for residents and owners “could jeopardise much-needed investment in new high-quality homes for renters across the UK,” he said.
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