Section 21 evictions will be banned, and renters will receive greater protections and security from eviction thanks to historic legislation announced by the government.
The Renters’ Rights Bill, introduced to Parliament yesterday, will ban Section 21 evictions for new and existing tenancies, extend Awaab’s Law into the private rented sector and end blanket bans for those on benefits or with children.
Banning Section 21 alone will reassure tenants they can challenge bad practice without the fear of retaliatory eviction, as landlords will need to provide a valid cause to end a tenancy early. Going further than ever before, the Bill will abolish Section 21 evictions for both new and existing tenancies at the same time, giving all private renters immediate security and assurance.
Last year alone, nearly 26,000 households faced homelessness as a result of a Section 21 eviction and had to go to their council for support.
Standards will also be driven up, as the Decent Homes Standard will be applied to the private rented sector for the first time. Currently 21% of privately rented homes are considered non-decent and more than 500,000 contain the most serious of hazards. Clear expectations will be set so tenants can expect safe, well-maintained, and secure living conditions.
Good landlords who provide these standards will benefit from clear regulation. This will eliminate unfair competition from those who, for far too long, have got away with renting out substandard properties to tenants, according to deputy prime minister, Angela Rayner.
She said: “Renters have been let down for too long and too many are stuck in disgraceful conditions, powerless to act because of the threat of a retaliatory eviction hanging over them.
“Most landlords act in a responsible way but a small number of unscrupulous ones are tarnishing the reputation of the whole sector by making the most of the housing crisis and forcing tenants into bidding wars.
“There can be no more dither and delay. We must overhaul renting and rebalance the relationship between tenant and landlord. This Bill will do just that and tenants can be reassured this Government will protect them.
Other measures introduced in the Bill include:
+ Applying Awaab’s Law to the private rented sector. This will ensure that all renters in England are empowered to challenge dangerous conditions.
+ Apply a Decent Homes Standard to the private rented sector for the first time. Landlords who fail to address serious hazards can be fined up to £7,000 by local councils and may face prosecution for non-compliance.
+ A ban on rental bidding wars, by cracking down on those who make the most of the housing crisis by forcing tenants to bid for their properties. Landlords and letting agents will be legally required to publish an asking rent for their property. They will also be banned from asking for, encouraging, or accepting any bids above this price.
+ Ban on in-tenancy rent increases written in to contracts to prevent landlords implementing too high rents mid-tenancy, often to push out the current tenants. Under these reforms, landlords will only be allowed to raise the rent once a year, and to the market rate.
+ Abolishing blanket bans on tenants with children or those in receipt of benefits to ensure fair access to housing for all.
+ A new Private Rented Sector Database will also be created to help landlords understand their obligations for compliance and provide tenants the information they need to make informed choices for new tenancies. It will also enable councils to focus enforcement where it is needed most.
Earlier this week, the housing minister Matthew Pennycook met with landlord and tenant groups and committed to engaging with them as the Bill progresses, to ensure the sector is ready for the changes.
The government will also ensure homes in the private rented sector meet minimum energy efficiency standards by 2030, more detail will be set out following further consultation.
The government sees the new Bill as a crucial step towards ending the housing crisis, along with a commitment to deliver 1.5 million homes over this parliament.
Whilst the loss of S21 will negatively impact landlords with defaulting/ASB tenants, the reality is this will mean little to no difference to 98% of the market. 85% of tenancies are ended by the tenant wishing/needing to move in/out with a partner, up/down the market or relocate for work/family. These motivations won’t ever change. Owners can still sell or reoccupy if need be. Banks can still repossess. Annual rent increases in line with market are still permitted.
For one of the largest changes in our industry’s history, the reality is very little will change.
However, the most impacted group by this change will be tenants- and negatively. Tenants with borderline income, unusual income structures, with pets, etc. who owners/agents would be willing to take a risk knowing that they had S21 as a safety net, simply won’t take the risk and those MOST in need (the lower mid-market section) will be shunned.
If Awaabs Law, Decent Homes standard, discrimination and excessive/unjustified rent increases are what are worrying you, then maybe it’s time to take a l,ong hard look in the mirror and decide if you really should be providing housing.
With so much legislative change- for good owners and their agents, very little will change. Our job, as agents, is to help our clients understand this, keep calm and carry on.
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Your living in cloud cuckoo land, ultimately if you want to sell your asset you shouldn’t need to go through 18 months of legal shenanigans to do so.
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“Last year alone, nearly 26,000 households faced homelessness as a result of a Section 21 eviction and had to go to their council for support.”
Had to? Or wanted to as getting a council property was advantageous?
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