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11:50 AM, 15th April 2019, About 5 years ago 32
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The government will collaborate with and listen to tenants, landlords and others in the private rented sector to develop a new deal for renting.
The government has today published its response to its consultation on Overcoming the barriers to longer tenancies in the private rented sector.
The government committed to consult on overcoming the barriers to longer tenancies in the private rented sector in the 2017 Autumn Budget. The consultation ran for 8 weeks and closed in August 2018.
In October 2017, the then Secretary of State committed to consult the Judiciary on whether to introduce a new specialist Housing Court.
We recently ran a call for evidence to better understand and improve the experience of people using courts and tribunal services in property cases, including considering the case for a specialist Housing Court.
This ran from 13 November 2018 to 22 January 2019. We are currently analysing the responses and will be publishing our response in due course. The 2018 English Housing Survey found that in 2017 to 2018 there were an estimated 23.3 million households in England. Of those, 4.5 million – or 19% – of households are in the private rented sector. The 2016 to 2017 English Housing Survey private rented sector report found 9% of renters had been in arrears in the last 12 months.
Ministers will also work with other types of housing providers outside of the private rented sector who use these powers and use the consultation to make sure the new system works for them.
Private landlords will no longer be able to evict tenants from their homes at short notice and without good reason, in the biggest change to the private rental sector for a generation, Communities Secretary Rt Hon James Brokenshire MP has announced (15 April 2019).
As part of a complete overhaul of the sector, the government has outlined plans to consult on new legislation to abolish Section 21 evictions – so called ‘no-fault’ evictions. This will bring an end to private landlords uprooting tenants from their homes with as little as 8 weeks’ notice after the fixed-term contract has come to an end.
This will effectively create open-ended tenancies, bringing greater peace of mind to millions of families who live in rented accommodation. Many tenants live with the worry of being evicted at short notice or continue to live in poor accommodation for fear they will be asked to leave if they complain about problems with their home.
It will give them the reassurance that they will not be suddenly turfed out of their home and reduces the risk of being faced with having nowhere else to go. And evidence shows that the end of tenancies through the Section 21 process is one of the biggest causes of family homelessness.
The private rented sector has grown rapidly over recent years, with more than 4 million people now living in privately rented accommodation – the vast majority of whom are responsible tenants who pay their rent on time and take good care of the property. Yet the housing market has not kept pace with the changes in society and leaves many tenants feeling insecure.
The proposed measures will provide greater certainty for tenants and make the housing market fit for the 21st century, whilst creating a more secure rental market for landlords in which to remain and invest.
Prime Minister Theresa May said:
“Everyone renting in the private sector has the right to feel secure in their home, settled in their community and able to plan for the future with confidence.
“But millions of responsible tenants could still be uprooted by their landlord with little notice, and often little justification.
“This is wrong – and today we’re acting by preventing these unfair evictions. Landlords will still be able to end tenancies where they have legitimate reasons to do so, but they will no longer be able to unexpectedly evict families with only 8 weeks’ notice.
“This important step will not only protect tenants from unethical behaviour, but also give them the long-term certainty and the peace of mind they deserve.”
Communities Secretary, Rt Hon James Brokenshire MP, said:
“By abolishing these kinds of evictions, every single person living in the private rented sector will be empowered to make the right housing choice for themselves – not have it made for them. And this will be balanced by ensuring responsible landlords can get their property back where they have proper reason to do so.
“We are making the biggest change to the private rental sector in a generation. We are creating homes, opportunities and thriving communities, where people can come together and put down roots, bound by a strong sense of belonging.
“Everyone has a right to the opportunities they need to build a better life. For many, this means having the security and stability to make a place truly feel like home without the fear of being evicted at a moments’ notice. We are building a fairer housing market that truly works for everyone.”
The vast majority of landlords are responsible property owners who provide quality homes and services for their tenants.
Under the proposals, landlords will have to provide a concrete, evidenced reason already specified in law for bringing tenancies to an end a marked step-change from the current rules which allows landlords to evict tenants at any time after the fixed-term contract has come to an end, and without specifying a reason.
And to ensure responsible landlords have confidence they will be able to end tenancies where they have legitimate reason to do so, ministers will amend the Section 8 eviction process, so property owners are able to regain their home should they wish to sell it or move into it.
Court processes will also be expedited so landlords are able to swiftly and smoothly regain their property in the rare event of tenants falling into rent arrears or damaging the property – meaning landlords have the security of knowing disputes will be resolved quickly.
Ministers will also work with other types of housing providers outside of the private rented sector who use these powers and use the consultation to make sure the new system works effectively.
Today’s announcement is the start of a process of engaging with landlords and tenants to amend these grounds in order to make the process work better for everyone.
The news comes just weeks before the Tenant Fees Act takes effect on 1 June, which will save tenants across England at least £240 million a year – up to £70 per household – by banning unfair letting fees and capping tenancy deposits at 5 weeks’ rent.
The new deal for renters is part of a wider package of government reforms aimed at rebalancing the relationship between tenants and landlords to deliver a fairer, better quality and more affordable private rental market.
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Gromit
7:47 AM, 16th April 2019, About 5 years ago
This is just a political move to curry favour after the Brexit farce, and takes the wind out of Labours sails.
This Government is bereft of leadership, and devoid of original ideas.
Neil Arnold
8:02 AM, 16th April 2019, About 5 years ago
Doesn’t the press release show a predetermination of the issue by government prior to consultation?
Larry Sweeney
8:05 AM, 16th April 2019, About 5 years ago
Excellent point Neil. We all know that its a done deal. The consultation is a farce, just as council consultations are.
Dennis Forrest
8:43 AM, 16th April 2019, About 5 years ago
Perhaps the government could define what it understands the words 'fixed term contract' actually mean.
Does 'fixed term' mean a fixed period of time with a start date and an end date or is this form of wording now superfluous in a rental agreement?
Does the word 'contract' actually mean a legal contract between the tenant and the landlord or is this just an optional arrangement for the tenant but legally binding commitment on the landlord?
Frederick Morrow-Ahmed
8:51 AM, 16th April 2019, About 5 years ago
When does it legally come into effect?
I thought primary legislation would first need to be passed, although Brokenshire is saying that from today S21 can no longer be used.
Seething Landlord
8:58 AM, 16th April 2019, About 5 years ago
From the Government response to the consultation - note the last sentence, potentially giving the equivalent of a fixed term of 2 years during which possession could only be obtained under the current S8 provisions:
"27. Landlords need to have confidence that they will be able to regain their property quickly in cases where the tenant has broken the terms of their tenancy agreement or where the landlord has other reasonable grounds. Without these assurances, landlords may be prompted to leave the market, which would not help tenants. We are therefore planning to introduce new Section 8 grounds, in parallel to removing Section 21, to strengthen the rights of landlords to recover their properties when necessary, including when they want to sell or move into the property themselves. The Government will consider limiting the use of these new grounds until the tenancy has lasted for two years to provide tenants with additional security."
Frederick Morrow-Ahmed
9:02 AM, 16th April 2019, About 5 years ago
Reply to the comment left by Monty Bodkin at 15/04/2019 - 16:24
Actually, Luke is right. Here is the full wording (notice the 'and'). So notice to use this ground would have to have been given BEFORE the start of the tenancy for this ground to be mandatory. The courts can waive this at their discretion:
Ground 1
Not later than the beginning of the tenancy the landlord gave notice in writing to the tenant that possession might be recovered on this ground or the court is of the opinion that it is just and equitable to dispense with the requirement of notice and (in either case)—
(a)at some time before the beginning of the tenancy, the landlord who is seeking possession or, in the case of joint landlords seeking possession, at least one of them occupied the dwelling-house as his only or principal home; or
(b)the landlord who is seeking possession or, in the case of joint landlords seeking possession, at least one of them requires the dwelling-house as [F1his, his spouse’s or his civil partner's] only or principal home and neither the landlord (or, in the case of joint landlords, any one of them) nor any other person who, as landlord, derived title under the landlord who gave the notice mentioned above acquired the reversion on the tenancy for money or money’s worth.
Rob Crawford
9:08 AM, 16th April 2019, About 5 years ago
I await in anticipation for the PM's plans for ".....strengthening the grounds for eviction under Section 8 of the Housing Act 1988 and simplifying court processes to make it easier to gain possession through the courts." I suspect this will be revealed in the Govt's response to the the “Considering the Case for a Housing Court” consultation and the announced "consultation for a better system that will work for landlords, tenants and others in the PRS". I just hope the Section 21 ban does not come into affect before these aspects have been addressed.
Monty Bodkin
9:16 AM, 16th April 2019, About 5 years ago
Reply to the comment left by Frederick Morrow-Ahmed at 16/04/2019 - 09:02
No, it is 'or' not 'and' (my bold);
(a)at some time before the beginning of the tenancy, the landlord who is seeking possession or, in the case of joint landlords seeking possession, at least one of them occupied the dwelling-house as his only or principal home; or
(b)the landlord who is seeking possession or, in the case of joint landlords seeking possession, at least one of them requires the dwelling-house as [F1his, his spouse’s or his civil partner's] only or principal home
Monty Bodkin
9:18 AM, 16th April 2019, About 5 years ago
Reply to the comment left by Frederick Morrow-Ahmed at 16/04/2019 - 08:51
"Brokenshire is saying that from today S21 can no longer be used."
He's not said that at all. You've just made it up.