Details of Labour’s new Renters’ Rights Bill will be published today

The bill banning Section 21 evictions will come to the House of Commons for its first reading today.

The Renters’ Rights Bill will also restrict bidding wars, as well as protect tenants whose landlords want to sell or move in.

The previous Conservative government pledged to scrap Section 21 evictions, but failed to do so for five years after initially proposing the policy.

Letting agents and landlords have raised concerns that scrapping Section 21 evictions will further put pressure on the court system, heightening fears that many private landlords will flee the sector, adding to the widening supply-demand imbalance in the market.

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.

Timothy Douglas

“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 evidenced based policies that support a flexible and fair private rented sector for all.”

Also speaking ahead of publication of the Renters’ Rights Bill later today, Ben Beadle, chief executive of the National Residential Landlords Association (NRLA) said: “Plans to reform the private rented sector have been on the table for over five years now. Above all, renters and landlords need certainty about what the future looks like. Whilst we await the precise details of the Bill, it is vital that it works, and is fair, to both tenants and landlords.

Ben Beadle

“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.”

In respect of plans to improve the quality of rental housing, Beadle added: “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.”

 

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4 Comments

  1. CountryLass

    So if a tenant offers a higher rent, but is also the best tenant, we can’t accept them? I understand that we cannot ASK for the best rent offer, and personally I am not a fan of doing that anyway, as you tend to get push-back when it comes to rent increases “but I’m already paying more than it was advertised for!”

    But if a tenant wants to offer higher, why should they or the landlord be penalised?

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    1. KByfield04

      I have no idea how on earth this would be ‘policed’! With far more important compliance going unenforced, this sounds nice to tenants but in reality will make no difference- apart from the most blatant of cases. In reality how we price and market properties will also adapt to ensure we do our job in securing the best, viable rent for our clients.

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    2. AcornsRNuts

      To be honest bidding wars are mainly in the minds of Labour MPs, Polly Bleat, Generation Rant etc. Rarely does it happen in real life and, when it does, it is usually accompanied by an offer to pay six months in advance in an attempt to circumvent referencing.

      Let in haste, repent at leisure.

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      1. CountryLass

        I know, even if a tenant offers the 6 months up front, I still go through referencing!

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