The government has accepted an amendment to the Renters Rights Bill exempting a small number of shared ownership properties from a key measure.
Under the Bill – which yesterday passed its final hurdle in the Commons and is set to become law within days – there will be a 12-month protected period at the beginning of a tenancy, during which landlords cannot evict renters to move in or sell up.
However, the government has now accepted an amendment from Conservative peer Lord Young of Cookham, meaning the ban will not apply to shared owners who have been seen to make a genuine effort to sell the property
The peer says the exemption protects people who find it difficult to sell shared ownership homes and are forced to sublet if they want to move to a new home.
Lord Young had told the Inside Housing industry publication: “The group of shared owners that this amendment seeks to protect are principally those who bought a flat in a block that needs remediation but who have subsequently had to move.
“Normally, a shared owner would sell his or her share in the block, but because of the difficulties of selling in a block that needs remediation – because of the safety issues post Grenfell – that has often been impossible, so they have had to sublet.
“Here comes the distinction from all the other landlords: shared owners cannot sublet without express consent from their registered provider, because subletting is banned from their leases.
“Such consent already gives robust protection to their tenants. Registered providers control and approve the rent that is being charged, in line with guidance set by the government, so shared owners cannot evict a tenant simply to jack up the rent.”
The publication also quotes Sue Phillips, founder of Shared Ownership Resources, saying: “It is welcome that shared ownership leaseholders who are accidental landlords will be exempt from the 12-month ban on re-letting if a sale of their property falls through.
“However, for many people, subletting may not be a desirable long-term solution to difficulties in selling their shared ownership property.
“The government should review the success (or otherwise) of existing exit routes from the scheme, and consider whether buyback should play a greater role.”
The Government has yet to say whether it will confirm an implementation date for provisions of the Renters Rights Bill to be introduced at Royal Assent, or at later date.
This article is taken from Landlord Today