The Renters’ Rights Bill has given some landlords a lot of concerns. The idea of ending Section 21 evictions was already a provision of the Renters Reform Bill that was being put through parliament by Rishi Sunak’s Conservative Government before it lapsed as parliament was dissolved ahead of the general election. But this legislation goes further.

Although the Section 21 change and other provisions – such as tenants being able to have pets and the establishment of an ombudsman for the sector – are part of the new bill as they were of the old, the Renters Reform Bill also came with the quid pro quo of a pledge to “introduce more comprehensive possession grounds”.

This was defined as cases where the landlord wanted to sell the home, move close family members into it and make it easier to repossess when tenants are badly at fault, such as through anti-social behaviour or repeatedly not paying the rent.

By contrast, the new bill pledges to “ensure possession grounds are fair to both parties”, which some may see as worryingly ambiguous language, while not emphasising the need to repossess to move in family members or sell up.

As Nottingham property agents, we know that many landlords working with us will have deep misgivings about the new legislation and be thinking of selling up and leaving the sector. The question is, what are your options?

If you are determined to sell, we can provide you with a valuation for your property, which will indicate just what it can sell for.

In doing so, you need to be aware of the state of play in the wider property market, which is now recovering after a tough couple of years, helped by the fact that after 14 Bank of England base rate increases, the rate was cut by 0.25 per cent in August.  

According to the latest Halifax House Price Index, published on October 7^th, the average house price in the UK is now 293,399, close to the record high seen in June 2022. Inflation in the sector is now 4.7 per cent. These figures bode well for sellers hoping to command a good asking price.

The one downside to this is that if, as some fear, there is a major exodus of landlords in response to the new legislation, the supply of available homes will increase, reducing the scarcity that drives inflation and thus acting as a constraint on property price rises.

A further consideration applies if you want to sell to avoid having to make costly improvements to a property in line with new legislation tackling issues like damp and mould (the extension of Awaab’s law) or to meet the new government’s pledge to ensure all properties have an energy performance rating of at least C by 2030.

In such cases, you must bear in mind that these costs would then be for any new landlord investor who buys the property to meet, or an issue a new owner-occupier would want to tackle. This could reduce the sale price you can command.

Alternatively, if you need an agent to work with to help you find ways to tackle these issues, we can help guide you on your options, ensuring you still have the option of continuing to let legally compliant property as an alternative to a sale.