Yesterday, the King announced the new government’s plans and – as expected – the Renters Reform Bill is back. Only this time it’s called the Renters’ Rights Bill.
During the election campaign, Labour promised to finish the abolition of Section 21 evictions that the last government started, along with a number of other changes intended to make renting fairer.
In the two-page briefing document published alongside the King’s Speech, there were no big surprises based on what we already knew. But we were looking out for what language was used, what details were included and what was missed out.
The main elements of the Renters’ Rights Bill are as follows:
- Abolition of Section 21 “no-fault” evictions. The Bill will give “renters much greater security and stability so they can stay in their homes for longer, build lives in their communities, and avoid the risk of homelessness”.
Currently landlords can give tenants two months’ notice to move out without needing a reason. As well as contributing to homelessness, this can discourage renters from raising concerns about disrepair, or challenging rent increases. It is good that the new government also recognises that uncertainty in our homes makes it hard to put down roots in our communities.
- “New clear and expanded possession grounds will be introduced so landlords can reclaim their properties when they need to.”
This is likely to include grounds for sale, for which landlords currently use Section 21. A ground to move back in exists already – another ground proposed under the previous version of the Bill allowed for moving a family member in.
For tenants to be able to stay in their homes for longer, we will need a longer period to live in our homes without fear of eviction for reasons beyond our control. The original 2019 consultation suggested a period of two years.
As well as a longer “protected” period, tenants need more time to be able to move. We would like to see eviction notice periods doubled to four months, which, among other things, would allow families to move home outside term time. Unwanted moves are also very costly and stressful. Providing financial support to move, such as by waiving the final two months’ rent, would alleviate some of this burden.
- “we will empower tenants to challenge rent increases designed to force them out by the backdoor and introduce new laws to end the practice of rental bidding wars by landlords and letting agents”
When Section 21 is abolished it will become easier for tenants to challenge rent increases through the existing First-Tier Tribunal process. Unfortunately, the tribunal sets the rent based on advertised rents for similar properties, which are often much higher than average rents in the area, and tend to rise more quickly than incomes. Since March 2021, rents on new tenancies recorded by Zoopla have increased by 33% while wages have increased by 19%.
Without changing the benchmark the Tribunal uses, renters will still be exposed to unaffordable rent rises, and often this will result in being forced out of our home. We would prefer rent increases to be limited to the lower of wage growth or consumer price inflation.
Long term, the answer to rising rents is to build more, and building more social housing will help many people escape renting in the medium term. But more immediate action through regulation of tenancies would help keep more renters in their homes and out of poverty.
Rental bidding wars have become much more common since the pandemic and make the flathunting process much more stressful than it already is. As a tenant you will often view a flat you think you can afford then get outbid, meaning you’ve wasted your time. Outlawing bidding wars would reduce stress and wasted time for would-be tenants.
- “giving tenants the right to request a pet, which landlords must consider and cannot unreasonably refuse. Landlords will be able to request insurance to cover potential damage from pets if needed.”
The right to ask to keep a pet is very welcome – the lack of this right now is a significant factor behind tenants feeling like second class citizens. We don’t think this should cost tenants anything additional and are concerned about the potential for tenants to be ripped off by being required to buy pet insurance.
- “creating a digital private rented sector database to bring together key information for landlords, tenants, and councils. Tenants will be able to access information to inform choices when entering new tenancies. Landlords will be able to quickly understand their obligations and demonstrate compliance, providing certainty for tenants and landlords alike. Councils will be able to use the database to target enforcement where it is needed most.”
This appears to be a rebranding of the previously proposed Property Portal. This could be of immense value to policymakers as well as tenants and enforcement authorities. To do so it should be integrated with existing databases for energy performance and gas safety, and also collect information such as rent data.
One concern we have is with the capacity of local authorities to enforce compliance with the database as well as their other duties. Renters will often be well-placed to spot non-compliance but will need a strong incentive to report it. We suggest that tenants whose landlord is not compliant with the database be eligible to claim back rent, through a Rent Repayment Order.
The possibility of being eligible for a rent refund would help drive up awareness and usage of the database among renters, which could be an opportunity to provide wider information about renters’ rights.
Several other elements were included in the summary. Generation Rent is very supportive of these – and will be looking at the detail when it emerges to make sure renters get the best deal.
- applying a Decent Homes Standard to the private rented sector.
- applying ‘Awaab’s Law’ to the sector, setting clear legal expectations about the timeframes within which landlords in the private rented sector must make homes safe where they contain serious hazards.
- a new ombudsman service for the private rented sector
- making it illegal for landlords to discriminate against tenants in receipt of benefits or with children
- strengthening local councils’ enforcement powers
This is just one step towards reforms and there is still a lot of work to do – renters’ voices will be an important part of persuading the government to go further on new protections. Be a part of this campaign: share your story.
