Housing secretary Michael Gove has published the Renters Reform bill, which promises to ban no-fault evictions and bring in a range of sweeping measures for tenants and landlords that will leave the industry looking at a new landscape.
The long-awaited legislation will scrap Section 21 no-fault evictions that allow landlords to end a tenancy at their discretion, a move first promised to England’s 11 million renters in the 2019 general election.
The wide-ranging bill includes:
- Applying the Decent Homes Standard to the private rented sector for the first time, in line with the government’s target to halve the number of non-decent rented homes by 2030
- Making it illegal for landlords and agents to have blanket bans on renting to tenants on benefits, or with those with children
- Strengthening councils’ enforcement powers and introduces a requirement for councils to report on enforcement activity – to help target criminal landlords
- Strengthening powers to allow landlords to evict anti-social tenants
- Introducing an Ombudsman in disputes between landlords and tenants
- Giving tenants the right to request a pet in their home
Gove said: “Our new laws introduced to Parliament today will support the vast majority of responsible landlords who provide quality homes to their tenants, while delivering our manifesto commitment to abolish Section 21 ‘no-fault’ evictions.”
The majority of brokers welcomed the bill, but some thought the move would have a long-lasting effect on the country’s two million landlords.
SelfEmployedMortgageHub.com founder Graham Cox says: “These reforms, including the removal of no-fault evictions under Section 21, are very much to be welcomed.
“For too long, a minority of unscrupulous landlords have enjoyed all the benefits of renting out property without any of the responsibility.
“But make no mistake, the government is only introducing them now because of what they have planned for us, namely build to rent on a massive scale.
“Our new landlords are to be faceless corporations, pension funds, insurance companies and private hedge funds.
“This is the government’s surrogate policy for social housing and is why they’re doing everything in their power to drive the small or amateur landlord out of the market.”
Generation Rent acting director Dan Wilson Craw adds: “Arbitrary Section 21 evictions make it impossible for tenants to put down roots and report problems about their home with confidence.
“Abolishing them will take away much of the stress of renting and improve communication and trust between tenants and landlords.”
However, National Residential Landlords Association chief executive Ben Beadle says the housing department has to make sure landlords will be able to repossess their properties “as quickly as possible” when they have “a legitimate reason”.
Nationwide Building Society director of landlord Damian Thompson backed the view that landlords need a clear voice as this legislation proceeds into law.
Thompson says: “While it’s good to see the bill published, government must not lose sight of the mounting pressure landlords face through interest rate rises, rental arrears and the need for certainty over increased energy performance certificate requirements.
“If these are not adequately addressed, it will drive good landlords out of the sector, further exacerbating the undersupply of privately rented accommodation.”
MoneySavingExpert.com founder and ITV presenter Martin Lewis backed the move toward an Ombudsman.
Lewis says: “Crucially, it won’t be voluntary, all private landlords will be required to join the Ombudsman, and it will have the legal authority to compel apologies, take remedial action and pay compensation.”
Even Battersea Cats & Dogs Home weighed in on the housing secretary’s plans.
Battersea Cats & Dogs Home Head of Policy & Public Affairs Michael Webb points out: “Tenants being unable to find anywhere to rent with their pet is sadly one of the most common reasons people bring their animals to Battersea.
“As this bill now begins its journey through Parliament, we look forward to continuing to work with the Housing department, tenants and landlords to help ensure a fairer rental sector for pets and people alike.”
Brokers point out that while the bill opens options for tenants, it presents landlords with sharp complications.
Carl Summers Financial Services financial adviser Scott Taylor-Barr says: “For better or for worse, one thing that the new bill does mean is that landlords now need sound advice more than ever: your letting agent, mortgage broker, legal adviser and tax consultant all become key to the success or failure of an individual buying a property to rent out.”
