The Guardian newspaper reports the Labour Government will introduce their Renters’ Rights Bill into Parliament this week.
As well as scrapping Section 21 evictions there will be longer notice periods, restrictions on rent bidding wars but no plans to cap rent increases at inflation or wage growth. There is no indication that the government will deal with current court delays before introducing the legislation.
A spokesperson for the Ministry of Housing, Communities and Local Government said: “The Renters’ Rights Bill will be introduced in due course and we have committed to engaging with the sector throughout the process. We will take action by abolishing section 21 ‘no-fault’ evictions immediately, end rental bidding wars to stop the predatory practice of pitting renters against each other and empower renters to challenge poor conditions.”
Longer Notice Periods
The government plans to introduce longer notice periods before evictions are enforced, particularly in cases where landlords intend to sell the property or move back in.
Court Delays
For landlords and letting agents, one of the major worries is the anticipated pressure on the courts when the bill becomes law. With Section 21 gone, all evictions will need to go through the court system, potentially leading to long delays.
Ben Beadle, CEO of the NRLA, said: “The end of Section 21 will leave the courts needing to process possession claims where landlords have a legitimate reason. Without reforms to ensure the courts process cases much more swiftly, they risk becoming overwhelmed, which will not serve the interests of tenants or landlords seeking justice.”
Rent Bidding Wars
One of the more contentious proposals in the bill is the restriction on rent bidding wars. Landlords and letting agents will no longer be allowed to encourage prospective tenants to offer higher than the listed rental price, though they plan to still allow renters to make a higher offer of their own accord. Critics have highlighted that similar laws were introduced in parts of Australia and have proven difficult to regulate.
Rent Increases
The government has rejected some of the moves that campaigners have called for including capping rent increases. A Labour-commissioned study previously proposed capping annual rent increases at whichever was lowest out of consumer price inflation or wage growth. Ministers are understood to have decided against such a plan but wish to empower tenants to challenge rent increases.
Other measures in the Renters’ Rights Bill include:
- Giving renters the right to request a pet but enabling landlords to request tenants take out pet damage insurance.
- Introduce a decent homes standard.
- Applying Awaab’s Law which will require landlords or agents to carry out crucial repairs within a specified period of time, with the exact period likely to be decided after a consultation.
- Creation of a digital national database of landlords and their properties.