The new bill aims to finally put an end to Section 21 'no fault' evictions
Details of the new Renters’ Rights Bill will be published today as the bill makes its way to the Commons for its first reading.
Labour had promised to scrap the legislation allowing ‘no fault’ evictions if elected, following the outgoing government’s failure to pass the Renters (Reform) Bill before election campaigning began.
The Renters’ Rights Bill will also restrict in-tenancy rent rises and protect tenants whose landlords want to sell or move in.
However, landlords are warning they may have to raise rents by as much as 10% if the expected flexible tenancies mean tenants can walk away from deals in just two months and an already struggling court system will feel that extra pressure if Section 21 is finally abolished.
Speaking ahead of its publication, Timothy Douglas, head of policy and campaigns at Propertymark, commented: “Having met with the Housing Minister, it is clear his intention is for these reforms to overhaul private renting in England. They are a long-held manifesto commitment from Labour, with the new government at Westminster using their mandate for reform.
“Whilst Propertymark acknowledges the drive towards improved standards, the UK Government must fully understand and recognise the impact that these changes will have with agents up and down the country left wondering how this legislation will help meet the much-needed demand for homes for people to rent.
“With such significant changes to the current tenancy regime, there must be a commitment to ensure the court system and grounds for possession are robust and fit for purpose. Furthermore, without an enhanced, effective and well-resourced enforcement regime from local authorities, it is unlikely that any benefits from the reforms will be realised.
“Propertymark will continue to make the case for evidence-based policies that support a flexible and fair private rented sector for all.”
“The end of Section 21, ‘no explanation’ repossessions represents the biggest change to the sector for over 30 years. Once the Bill is passed, it is vital that sufficient time is provided to enable the sector to properly prepare. Over 4.5 million households will need tenancy agreements updating, letting agent staff and landlords will need to undertake training and insurance and mortgage providers will need to adjust policies and rates. None of this will happen overnight and the Government needs to publish guidance.
“In addition, ending Section 21 will leave the courts needing to hear possession claims where landlords have a legitimate reason. The cross-party Housing Select Committee has warned that without reforms to ensure the courts process cases much more swiftly, they risk becoming overwhelmed. This will not serve the interests of tenants or landlords seeking justice.”
On plans to improve rental housing quality, Ben said: “Too often the actions of a minority of rogue and criminal landlords have brought the sector into disrepute. We therefore support measures to ensure every rental home is of a decent quality, and swift action is taken where standards threaten the health of tenants. However, this all needs to be backed up with robust enforcement by councils.”
He also stressed the need for reform to ensure courts do not buckle under the pressure of possession claims that will need to be heard under the new rules.
He added: “Ending Section 21 will leave the courts needing to hear possession claims where landlords have a legitimate reason. The cross-party Housing Select Committee has warned that without reforms to ensure the courts process cases much more swiftly, they risk becoming overwhelmed. This will not serve the interests of tenants or landlords seeking justice.”