A senior buying agent is warning that new regulations over the length of notice given to tenants is having an unexpected side effect on the sales market.
Caspar Harvard-Walls of the Black Brick agency says recent amendments to the Coronavirus Act – meaning tenants would need to be given at least six months notice to end a tenancy, regardless of the original agreement – is at the root of the problem.
“While the clause was quite rightly introduced to protect vulnerable tenants, it may be having an unintended effect in reducing supply to the Prime Central London market” he says.
“This is having a big impact in some areas with tenants not moving in areas such as Fulham. Tenants are not moving on and family houses are even more difficult to come by” he adds.
Currently landlords starting new Section 21 evictions must wait six months to give notice before eviction proceedings can even begin.
Existing Section 21 possession proceedings face numerous hurdles before they can proceed, including the substantial backlog of cases currently because of courts working under restrictions regarding social distancing.
This post has originally been featured in Letting Agent Today.