United Kingdom

Renters’ Rights Bill – the fight for fair rental reform begins

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A gavel next to a model house

The Renters’ Rights Bill has passed its second reading in Parliament – now is the time for the private rented sector to get involved.

As the bill enters the committee stage, MPs will have the chance to take evidence from experts outside Parliament – including letting agent and landlord groups, charities and industry suppliers.

Industry experts have major concerns about the bill as it stands – particularly around the scrapping of Section 21 evictions – and are already putting forward ideas on how it can be improved. Propertymark has called on the government to bring down waiting times for hearings, speed up the court process with more digitisation and remote hearings, and improve the quality of court buildings. The Law Society, which broadly welcomed the bill, has also called for more resources for courts and more legal aid for tenants.

Both Propertymark and the National Residential Landlords Association have further asked the government to retain fixed-term tenancies, giving tenants the option of greater security of tenure. As things stand, the Renters’ Rights Bill proposes making all tenancies periodic from day one, allowing tenants to give notice after just a couple of months.

They warn that making it overly difficult for landlords to take back their homes will force many out of the market, worsening the shortage of rental homes.

The view from the other side

But while landlord and letting agent groups are calling for some of the bill’s measures to be scaled back, tenant groups argue it doesn’t go far enough.

The Renters Reform Coalition wants all Section 8 eviction grounds to become discretionary, meaning that courts would not have to grant an eviction if the tenant has built up substantial rent arrears or the landlord wants to sell the property, and has called for landlords to be barred from using no-fault grounds within the first two years of a tenancy. When a tenant is evicted without fault (for example, if the landlord wants to sell), the group also wants the tenant’s rent to be waived for the last two months of the tenancy to make up for their moving costs.

They have further called for the government to cap rent increases within tenancies, and to investigate the option of using wider rent controls to bring down the cost of renting.

The way forward

Neither side is likely to get everything they want. Labour housing minister Matthew Pennycook has previously ruled out rent controls. At the other end of the spectrum of responses, getting the government to scrap a key part of the bill and retain fixed-term tenancies would also be difficult – especially as they have a large majority, and are unlikely to be as affected by back bench lobbying as the Conservatives were while trying to pass the Renters (Reform) Bill.

With that in mind, some industry leaders are instead focusing on how to thrive in the post-Renters’ Rights Bill market. Reapit general manager Steve Richmond says the new, more regulated processes for securing evictions, adjusting rents and keeping properties in good condition will help letting agents create new revenue streams and become a must-have for landlords.

 

Other policy headlines
Agents asked to provide their views on Welsh housing policy – Estate Agent Today

Shelter chief executive Polly Neate to step down next March – Housing Today
Licensing enforcement accelerates as non-compliance fines near £900,000 in the capital – Property Reporter

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