Renters (Reform) Bill passes its second reading without a vote

Renters (Reform) Bill passes its second reading without a vote

11:17 AM, 24th October 2023, About 7 months ago 16

Text Size

The Renters (Reform) Bill passed its second reading on Monday without a vote which means that the proposal to scrap Section 21 of the Housing Act 1988, which allows landlords to evict tenants without giving a reason, is a step nearer.

However, this part of the Bill is likely to be delayed due to opposition from dozens of Tory MPs, who have urged the Government to drop or amend it.

The Government also confirmed it will not ban no-fault evictions until it has improved the justice system and the state of the courts, which are currently suffering from significant backlogs.

An unusually long delay before its second reading

The Bill was first introduced in May but has faced an unusually long delay before its second reading and the Telegraph has reported that the Government pressured rebels to skip or abstain from the vote, which the whips’ office denied.

Michael Gove, the Housing Secretary, defended the Bill in the Commons, saying it would protect vulnerable renters from ‘unscrupulous landlords’ who use Section 21 as a weapon.

He said: “Conservatives exist to protect the vulnerable in society, to make sure markets work, and to save the taxpayer money.”

Watch Michael Gove introduce the Bill to Parliament and explain (from 18:07) that ‘good landlords’ have nothing to fear from the abolition of Section 21:

https://parliamentlive.tv/event/index/d16e5c64-bc30-4f57-83ce-a444baee70c8

Accused the Government of ‘foot dragging’

Angela Rayner, the Shadow Levelling-up Secretary, accused the Government of ‘foot dragging’ for almost five years on the Bill and said Tory MPs needed to be ‘appeased’ with more delays.

She said renters were at the ‘sharp edge’ of the current housing crisis and they needed more protections.

Marcus Fysh, the Conservative MP for Yeovil, criticised the Bill as a ‘disastrous’ piece of legislation for any renter who wanted a ‘well supplied housing market’.

And the independent MP for Islington North and former Labour leader Jeremy Corbyn called for rent controls to prevent people being forced out of their homes.

Pressure from Tory MPs to drop or amend the Bill

Over the last few months, there has been mounting pressure from Tory MPs to drop or amend the Bill.

One of them, Christopher Chope, is a leading rebel against the Bill and he told PoliticsHome he was ‘pretty much [in] despair’ and believed the proposed legislation was ‘essentially a socialist measure’.

There is growing discontent among those opposed to the Bill around Gove in particular, who they believe has pushed through the reforms regardless of their opposition.

Some are hoping that he is moved from the housing brief when Prime Minister Rishi Sunak is expected to reshuffle the Cabinet later this autumn and that his successor would be more approachable on rental reform.


Share This Article


Comments

Kevyn Jones

21:39 PM, 24th October 2023, About 7 months ago

Why do you use the misleading expression, "which allows landlords to evict tenants without giving a reason". This implies that landlords are reneging on their contractual obligations, which is not the case.

Why don't you write something like, "which allows landlords to reclaim their property after the end of the lease period"?

DrT

7:33 AM, 31st October 2023, About 7 months ago

Reply to the comment left by Martin Hicks at 24/10/2023 - 12:14
You will still be liable for capital gains tax if you gift rental properties.

DrT

7:34 AM, 31st October 2023, About 7 months ago

You will still be liable for capital gains tax if you gift rental properties.

Martin Hicks

8:29 AM, 31st October 2023, About 7 months ago

Reply to the comment left by Kevyn Jones at 24/10/2023 - 21:39
Surely there is no fundamental difference between a tenant renting a property and a guest staying at a hotel? In both cases there is a contract between the two parties and that defines their relationship. No particular morality or obligation is required of either party outside of that contract.

TheMaluka

8:40 AM, 31st October 2023, About 7 months ago

If only that were so life would be simple.
I can see why renting a permanent home has to be somewhat different from hotel accommodation but unless both parties adhere to the contract it should be swiftly ended.

Dennis Forrest

8:50 AM, 31st October 2023, About 7 months ago

Reply to the comment left by LL Minion at 24/10/2023 - 18:09
You are correct that you have to pay CGT at either 18 or 28%. I have already gifted one property to my son. Some of the gain was taxed at 18% but the majority of the gain was taxed at 28%.
We had a free valuation from an estate agent as to the realistic selling price - not the higher price that an agent might initially put it on the market at. HMRC accepted this valuation without any come back.
You are not correct when you say stamp duty is due on a gifted property. If the gifted property is unencumbered (no loans or mortgages) then stamp duty is NOT payable.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Tax Planning Book Now