Buy-to-let  

Govt pushes forward with rental reform

He said: “Landlords need a system is in place that provides the confidence and certainty needed that they can regain possession of their property in legitimate circumstances."

But he added: “We have engaged extensively with the government over these proposals and we are pleased to see that many of our points have been taken on board, including improving the court system and alternative processes for regaining possession of a property.”

Mr Smith said the RLA’s research had shown that Section 21 notices were mainly used for three reasons.

The research found that 84 per cent had used it because of tenant rent arrears, 56 per cent because of damage to a property and 51 per cent due to anti-social behaviour.

He said: "We will continue to make the case for a system that works for both tenants and landlords and will be responding to the consultation once we have reviewed the full details."

The proposals to scrap Section 21 orders is the latest in a string of changes to the buy-to-let market to hit landlords.

Landlords have been subject to a number of regulatory changes in recent years, with the introduction of an additional 3 per cent stamp duty surcharge on second homes in April 2016, which was closely followed by cuts to mortgage interest tax relief.

Buy-to-let borrowers are also now subject to more stringent affordability testing under the Prudential Regulation Authority's tightened underwriting rules.

imogen.tew@ft.com

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