Today, the House of Commons revisits the Renters Reform Bill. Minister Jacob Young touts the bill as a major step forward for tenant protection, chiefly because it aims to eliminate Section 21 ‘no fault’ evictions.
A Renters Reform Coalition group of organisations that includes Citizens Advice, Shelter, and the Joseph Roundtree Foundation, have sharply criticised the changes to the Renters Reform Bill, claiming that the proposed abolishment is merely symbolic.
The bill just had its second reading in Parliament, and amendments now call for a judicial review prior to eliminating Section 21 for current leases.
The coalition released a detailed declaration expressing their frustration that government officials have met more frequently with property owners and real estate agent lobbyists than tenant representation groups.
Their statement highlighted: “Government interactions neglected our views, leading to consecutive dilutions of the bill influenced by government concessions to satisfy backbench MPs, significantly weakening the bill. The recent amendments advocated by the government are the last straw.
“As a result of these compromises, the Renters Reform Bill now only nominally ends Section 21—without any assurance of its full termination. Moreover, the replacement tenancy framework does little to improve the overall situation. Instead of improving renter conditions, this legislation appears to maintain the fundamental power imbalance that underlies the renting crisis in England.”
Changes to the Renters Reform Bill also include provisions that renters must occupy a property for a minimum of four months before giving a two-month notice for fixed term tenancies.
Separately, the bill introduces a new possession ground for student housing, allowing landlords to maintain the yearly turnover of student renters.
Is it really giving both renters and landlords a fair shake?
Yesterday, during its report stage and third reading, the Renters Reform Bill received several new amendments.
One notable change would mean that tenants can’t be forced to give two months’ notice until they’ve lived in a property for at least four months under fixed-term tenancies.
There’s also a recommendation to review court processes before Section 21 is done away with for existing tenancies.
What’s the industry’s take on these Renters Reform Bill developments?
Oli Sherlock of Goodlord points out that the bill is more than just about ending Section 21 eviction notices, which was a hot topic in today’s parliamentary discussions. The Renters Reform Bill’s success, according to Sherlock, hinges on the court system’s capability to manage the new changes without a clear indication of sufficient funding, which is concerning.
Ben Beadle from the National Residential Landlords Association embraces the bill, appreciating its potential in providing equitable arrangements for both tenants and conscientious landlords. The bill proposes ending fixed-term tenancies and Section 21 repossessions, establishing a Decent Homes Standard, introducing a new Ombudsman and Property Portal, and offering protective measures against discrimination for families and benefit recipients.
Moreover, the courts will be responsible for determining if landlords can repossess properties for valid reasons, like problematic tenant behavior or the sale of the property. He acknowledges the concerns raised by Generation Rent about landlords selling properties being a common cause of homelessness, asserting that keeping responsible landlords in the market is crucial.
Brendan Geraghty of ARL appreciates the advancements made with the bill, indicating that the managed BTR sector it represents complies with the bill’s fairness and quality provisions. He cites the creation of new homes and a new BTR Code of Practice as evidence of this sector’s dedication.
Nevertheless, Geraghty stresses the importance of maintaining a viable six-month assured tenancy system. Without this, there could be a significant reduction in rental housing investment, worsening the existing housing crisis. ARL supports necessary court reforms and reviews of licensing regimes to foster new home development.
As the Renters Reform Bill moves towards the House of Lords, ARL hopes for a quick passage to guarantee stability for all involved in the private rental sector.
Lauren Hughes from Vouch notes that despite progress, the debate underscored persisting uncertainties, especially regarding the contentious Section 21. Some MPs are pushing for adjustments to the proposal to abolish no-fault evictions, and it seems their efforts are swaying the government, with an admission that the Section 21 ban might not be enacted before the next General Election.
Olivia Harris from Dolphin Living gives a nod of approval to the Renters Reform Bill’s main goals and recent strides, especially in providing a six-month initial tenancy period and a mandated review of the county court system before Section 21 is scrapped. However, she expresses concern over potential side effects on intermediate rental providers, particularly how changes to Section 21 could affect housing allocation and renewal for sub-market rent situations dependent on household income caps.
