Small landlords with one or two properties could end up being replaced by larger portfolio or corporate landlords as part of the Government’s push to improve standards, according to a top property lawyer.

Justin Bates, barrister at Landmark Chambers, believes the Government is worried about the “amateur” PRS, as it thinks it makes it harder to drive up standards.

However, he said the Government isn’t inherently anti-landlord.

“This is a Government that sees that the current arrangements don’t work for the majority of people,” explains Bates.

“Labour didn’t promise to regulate the market but…it needed to re-balance the relationship…because it benefits tenants and the wider community – and if that means landlords lose out, then they lose out.”
Ground 1A possession

However, while the end of Section 21 is about the protection of homes not assets, the new Ground 1A possession – providing the right to recover vacant possession, for example to move back in – is a sign that the Government isn’t completely out to get landlords.

“A really anti-landlord Government wouldn’t have put 1A in – they were quite lucky.”

Grounds 1 and 1A are close to the Scottish model, he said, adding that the Scottish experience suggests there will be dishonest claims, as some landlords there are using the grounds to gain vacant possession, then saying the sale has fallen through before renting their property again.

As a result, local authorities in England will be watching the PRS closely.

Bates believes the Government has been cunning with its strategy of soft rent control as landlords will only be allowed to increase rents through S13.

“If a tenant doesn’t agree with a rent increase it will have to go to tribunal and it won’t be backdated.

“The landlord will think, do I really want to spend three months waiting for a decision or do I say to a tenant, ‘let’s make a deal’? The DWP and Treasury will be pleased because that will slow the growth of the benefits bill.”

Bates was speaking as part of the Renters’ Rights Bill conference, organised by Landlord Law.

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