Renters’ Rights Bill set to be introduced with immediate Section 21 ban

The Renters’ Rights Bill will be introduced to Parliament today with Section 21 ‘no fault’ evictions set to be banned immediately.

Deputy Prime Minister Angela Rayner says the Renters’ Rights Bill will help “protect tenants” and stop unscrupulous landlords tarnishing the reputation of the private rented sector.

The Section 21 ban looks set to be implemented when the Bill becomes law – not when the court backlog has been cleared.

Other measures introduced in the Bill will include applying Awaab’s Law to the private rented sector and applying a Decent Homes Standard to the private rented sector for the first time. Landlords who fail to address serious hazards could be fined up to £7,000 by local councils and may face prosecution for non-compliance.

Immediate Section 21 ban for new and existing tenancies

The Bill will ban Section 21 eviction notices immediately for new and existing tenancies at the same time which the government says will give all private renters immediate security and assurance.

According to the government, nearly 26,000 households faced homelessness as a result of a Section 21 eviction and had to go to their council for support.

Deputy Prime Minister, Angela Rayner said:  “Renters have been let down for too long and too many are stuck in disgraceful conditions, powerless to act because of the threat of a retaliatory eviction hanging over them.

“Most landlords act in a responsible way but a small number of unscrupulous ones are tarnishing the reputation of the whole sector by making the most of the housing crisis and forcing tenants into bidding wars.

“There can be no more dither and delay. We must overhaul renting and rebalance the relationship between tenant and landlord. This Bill will do just that and tenants can be reassured this government will protect them.”

A New Private Rented Sector Database

According to the government, 21% of privately rented homes are considered non-decent and more than 500,000 contain the most serious of hazards. Clear expectations will be set so tenants can expect safe, well-maintained, and secure living conditions.

The Labour government will introduce the Decent Homes Standard to the private rented sector for the first time. The government says: “Good landlords who provide these standards will benefit from clear regulation. This will eliminate unfair competition from those who, for far too long, have got away with renting out substandard properties to tenants.”

A new Private Rented Sector Database will also be created to help landlords understand their obligations for compliance and provide tenants the information they need to make informed choices for new tenancies. It will also enable councils to focus enforcement where it is needed most.

The Housing Minister Matthew Pennycook met with landlord and tenant groups and committed to engaging with them as the Bill progresses, to ensure the sector is ready for the changes.

The government says they will help ensure homes in the private rented sector meet minimum energy efficiency standards by 2030, with more detail to be set out following further consultation.

Ban rental bidding wars

Other measures introduced in the Bill include:

• A ban on rental bidding wars, by cracking down on those who make the most of the housing crisis by forcing tenants to bid for their properties. Landlords and letting agents will be legally required to publish an asking rent for their property. They will also be banned from asking for, encouraging, or accepting any bids above this price.
• Ban on in-tenancy rent increases written in to contracts to prevent landlords implementing too high rents mid-tenancy, often to push out the current tenants. Under these reforms, landlords will only be allowed to raise the rent once a year, and to the market rate.
• Abolishing blanket bans on tenants with children or those in receipt of benefits to ensure fair access to housing for all.

Reaction from the NRLA

Speaking ahead of publication of the Renters’ Rights Bill later today, Ben Beadle, Chief Executive of the National Residential Landlords Association said: “Plans to reform the private rented sector have been on the table for over five years now. Above all, renters and landlords need certainty about what the future looks like. Whilst we await the precise details of the Bill, it is vital that it works, and is fair, to both tenants and landlords.

“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.

“In addition, ending Section 21 will leave the courts needing to hear possession claims where landlords have a legitimate reason. The cross-party Housing Select Committee has warned that without reforms to ensure the courts process cases much more swiftly, they risk becoming overwhelmed. This will not serve the interests of tenants or landlords seeking justice.”