A new proposal has sparked controversy in the property market as the new rule requires landlords to compensate the tenants when they evict. A large list of landlords in the UK are calling it ‘absurd’ even as an idea to reclaim their property, and it would be unfair to impose a new financial burden on them, adding to the challenges they are already facing.

What’s the Proposal? 

The initiative suggests that landlords would be liable to pay a two-month rent as compensation upon issuing a ‘no-fault’ eviction. The idea is to help tenants manage their relocation more effectively. Still, landlords argue that the government fails to recognise the daily challenges they face, such as cost increases, strict regulations, and shaky market confidence. 

Senedd’s Housing and Local Government Select Committee has proposed that landlords reclaim the properties for personal use or sale.

The Rejection of Proposal by Landlords

Landlords have opposed this proposal for obvious reasons, including the financial burden. Due to higher taxes, stricter rules regarding safety standards, and high-quality maintenance, landlords are already feeling the heat. This addition will only pressure landlords not to rent their properties, resulting in fewer rental places.

Another concern is that the proposal overlooks legitimacy. It assumes all "no-fault" evictions are unfair, avoiding cases where landlords need the property for personal or financial use. This one-for-all approach means responsible landlords, within their legal rights, will be targeted unfairly. Moreover, it is not viable for small landlords managing just one or two properties, as they would need to pay this compensation out of their pockets. If this happens, many such landlords may leave the property market entirely.

What’s the NRLA’s Response?

The National Residential Landlords Association (NRLA) has already opposed the proposal and the CEO, Ben Beadle, called it “ill-conceived and counterproductive.” Here’s what he said: 

“It is absurd that a landlord should have to pay compensation to get their property back, and the recommendation demonstrates a lack of understanding as to the reasons why landlords may need to do so.

“If the Welsh government is so concerned about losing private rented housing stock and the impact this has on renters, they must ensure housing providers have confidence to remain and invest in the supply of high-quality rental property. Ideas such as these serve only to undermine the little confidence that remains in the Welsh PRS.”

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