Renters' Rights Bill: landmark reforms to put an end to no-fault evictions
The long-awaited housing bill is to be unveiled in parliament on Wednesday - how will it affect you?
Landlords in England will be banned from removing tenants without cause as part of long-awaited reforms unveiled in parliament on Wednesday (11 September).
The Renters’ Reform Bill is to be introduced to parliament more than four years after a shake-up of the private rented sector was first promised under the previous government’s election manifesto.
A ban on no-fault evictions and in-tenancy rent rises in England will be among key changes in Labour’s Renters’ Rights Bill. Angela Rayner, the deputy prime minister and housing secretary, said the bill would “rebalance the relationship between tenant and landlord”.
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Renter associations have backed the plans but landlords have stressed they will need time to digest the reforms.
Ben Beadle, chief executive of the National Residential Landlords Association, said: “The end of Section 21, ‘no explanation’ repossessions represents the biggest change to the sector for over 30 years. Once the bill is passed, it is vital that sufficient time is provided to enable the sector to properly prepare.
“Over 4.5 million households will need tenancy agreements updating, letting agent staff and landlords will need to undertake training and insurance and mortgage providers will need to adjust policies and rates. None of this will happen overnight and the government needs to publish guidance.”
What is the Renters’ Reform Bill proposing?
The ban on no-fault evictions is expected to come into force next summer at the earliest. The bill would also prevent landlords from blocking tenants on benefits or with children and introduce fines for landlords of up to £7,000 if homes do not meet a “decent standard”.
Landlords would additionally only be able to raise rents once a year, and only to the “market rate”.
Campaigners have welcomed the reforms but would like the government to go further.
Nick Ballard, head organiser at Acorn, a community union that campaigns on rental and housing issues, says: "It's good to see that the new government is acting with speed where the last government failed, but it is worth noting that this bill would not have happened without years of campaigning from the organised tenant movement.
“We welcome the much-needed end to Section 21 evictions and legal requirements for improved standards. However, if it is to deliver the change renters need the government must introduce open-ended tenancies so tenants can plan for a long-term future in their home but have the flexibility to leave if they want.”
Ballard says rent rises should also be capped: “This bill is a strong step in the right direction, but it's time to keep pushing and deliver the fundamental change that we need."
Section 21 of the Housing Act has allowed landlords to break contracts without good reason, leaving tenants with just two months to find a new property.
Changing this will give tenants protection and security, but Matthew Lesh, director of public policy and communications at the Institute of Economic Affairs, points out it could make it harder to rent.
“Landlords will inevitably be more selective about who they offer properties to and charge higher rents when they cannot quickly evict bad tenants. That is likely to disproportionately hurt those who are poorer, younger, and from minority communities.”
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Chris is a freelance journalist, and was previously an editor and correspondent at the Financial Times as well as the business and money editor at The i Newspaper. He is also the author of the Virgin Money Maker, the personal finance guide published by Virgin Books, and has written for the BBC, The Wall Street Journal, The Independent, South China Morning Post, TimeOut, Barron's and The Guardian. He is a graduate in Economics.
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