In a rather brash change, the leader of the Labour Party, Jeremy Corbyn MP has issued Policy which may be seen to be a drive for votes from Pet Owners.
Corbyn wants all renters to have the right to have a pet and this would be a default right in their rented home.
Sue Hayman, Shadow environment secretary said 'People shouldn’t be denied the joy of keeping a pet just because they can’t afford a home of their own. For the majority of people under 30, buying a home is sadly less and less an affordable option.'
Labour want to stop Landlords being able to able to advertise property with a no pet policy and they want landlords to prove that the pet will be a nuisance before keeping it can be refused.
Does this mean that Landlords will need to start supplying references for Pets? It would appear so.
However, not every property will be suitable. High rises and properties without gardens may prove troublesome nor would it beneficial to animal welfare.
It is interesting to note that the NLA supports schemes that encourage landlords to take on pet owners, however it goes on to state that landlords should have a right to refuse permission should they justify their position.
At Dendrow, we are all for asking if our client landlords are willing to accept pets within the property, subject to certain conditions.
An increased security deposit, to cover any damage by the pet/s, certain amendments to definition of cleaning and mandatory requirements to ensure that the interest is protected.
Pet owners are some of the most loyal renters as it is challenging to rent in London with a pet and not all landlords accept pets, that once a property is found that would accept a loyal companion, it is unlikely that the tenant would vacate of their own accord.
Labour have also introduced the desire to scrap the 'no-fault' eviction. Abolishing the Section 21 which allows a landlord to serve two months’ notice on a tenant at the end of a fixed term or break clause within a contract. This will be in labour’s next manifesto to bring rules back in favour of renters.
The current rules can break up communities and displace families according to Corbyn.
The department of Communities and Local Government provided figures which were compiled by Labour which show that the levels of homelessness that has increased because of the ‘no-fault’ eviction by 299% from 4580 from 2009-10 to 18270 in 2016-17.
This all comes from calls by Labour to redact the section 21 notice which was brought in by Margaret Thatcher’s government in 1988.
This aside, and one very poignant aspect which all articles, opinion pieces and journalistic reports seems to miss out on is the actual Lenders and their criteria for the rental of an investment property.
Not all Lenders would allow for indefinite tenancies. What if the debt was called in? how would the lender sell the asset to recoup its losses as a result of non-payment of the mortgage by the investor?
What would the Prudential Regulatory Authority say about indefinite tenancies? And in particular, to the relevant stress testing criteria? Does this even have an impact?
The fact of the matter is that whilst government wants to reform housing and add security to the rented sector, mostly (it seems) to bolster voter numbers in their favour at the polling stations come election time, the reality is that even the majority of investors and accidental landlords require some amount of financing and are therefore reliant on the banks or financing stream.
This is incredulously similar to the first-time buyer scenario and the levels of wages not increasing in such a way to make housing affordable in the capital for the younger generations who should be starting their property life career.
In light of this, an additional article will look at the lenders and how the criteria of lending is killing the market.