Landlords could be blocked from evicting tenants if it would cause them undue hardship, according to reports in the press.
This could apply if the tenant is terminally ill, would lose their job if evicted, or would become homeless.
The policy has not been officially announced, but is reportedly supported by housing minister Matthew Pennycook. While in opposition, he proposed a similar amendment to the previous government’s Renters (Reform) Bill – now defunct.
How would it work and what does it mean for the PRS?
Pending more clarity, press reports claim judges deciding eviction cases will be given the option to deny possession even when the case is brought on mandatory grounds.
If the Renters (Reform) Bill amendment proposed by Pennycook will inform such a policy, judges would have discretion in cases brought on any of these three grounds: sale of the property, occupation of the property by the landlord or their close family, and the proposed ground to allow landlords to evict tenants to comply with enforcement action (for example, if they receive a banning order). Notably, there were no plans to apply it to evictions on the grounds of rent arrears.
But introducing a hardship test could undermine concessions to landlords that were expected in the Renters Rights Bill. In exchange for losing Section 21 “no fault” evictions, industry organisations have called on both the current and previous governments to strengthen mandatory grounds for Section 8 evictions. If those now effectively become discretionary, landlords will lose confidence that they can take back their properties when needed.
At this point, any talk of a hardship test is just speculation – nothing has yet been confirmed by the government. However, industry organisations are understandably concerned, and the National Residential Landlords Association has written to the government to seek clarity on their plans.
Parliament is currently on recess, so further details are unlikely to emerge before the autumn. Any bill will also be subject to scrutiny by politicians and the housing industry. But if the government decides to go ahead with this plan, landlords will need to know urgently how the hardship test will be applied and which mandatory eviction grounds it will cover.
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