Providing vital representation
The Renters' Rights Bill represents a key manifesto pledge which will drastically transform the private rented sector (PRS) in England. Propertymark recognises the magnitude of what is being proposed and will work to shape the proposals as best as possible.
Among our greatest concerns is that legislation will not address the much-needed supply of homes to rent, the capacity of the courts, and the robustness of grounds for possession.
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.
What is the Renters’ Rights Bill?
The ministerial insight provided to our Policy and Campaigns team reveals that the Bill will significantly increase the scope of the legislation compared to the Conservative government’s Renters (Reform) Bill, which was dropped when parliament was dissolved ahead of the general election.
If the proposed legislation passes through parliament unaltered, it will overhaul the legal framework for private rented housing, including a single stage implementation to ban Section 21 eviction notices. Headline measures include;
- Removing fixed term tenancies
- A new, more narrowly defined student ground for possession
- Removal of Section 21 without a requirement for count reform
- An expansion of Rent Repayment Orders
- Fines placed on landlords will increase in line with inflation
- Ban on in-tenancy rent increases written in to contracts. Landlords will only be allowed to raise the rent once a year, and to the market rate
- Ban on rental bidding wars. Landlords and letting agents will be legally required to publish an asking rent for their property
The legislation will also introduce a new Ombudsman for landlords designed to resolve disputes between landlords and tenants, and a new PRS Database. The specifics of the Database are yet to emerge, but the UK Government says it will aim to provide greater transparency and support for landlords.
Enhanced tenant protections
Housing Secretary and Deputy Prime Minister, Angela Rayner, MP, has stated that 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.
New safeguarding measures will be introduced aimed at preventing discrimination against renters, including abolishing blanket bans on tenants with children or those in receipt of benefits, along with measures designed to control and measure bidding wars in the rental market.
As expected, Awaab’s Law and a Decent Homes Standard will be applied to the PRS, with the UK Government saying that all renters in England will be empowered to challenge dangerous conditions. Landlords who fail to address serious hazards could face fines up to £7,000.
Having met with the Housing Minister, it is clear his intention is for these reforms to overhaul private renting in England. They represent a long-held commitment from Labour, with the new UK Government at Westminster using their mandate for reform.
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.
We will continue to make the case for evidence-based policies that support a flexible and fair private rented sector for all.
