Renting returns to the political agenda
Earlier this week, the Renters’ Rights Bill was introduced into Parliament to make significant changes to the private rented sector. CLA experts look at what this new bill contains and how the Association has secured new grounds for repossession
As expected, Wednesday saw the introduction of a bill into the House of Commons that will overhaul the private rented sector (PRS) – the Renters’ Rights Bill. This bill most notably delivers on the government’s manifesto commitment to end section 21 evictions, known as the ‘notice only’ or ‘no fault’ route to possession.
The Renters’ Rights Bill
The bill closely resembles the previous government’s Renters (Reform) Bill, which introduced a PRS property portal and an Ombudsman, increased standards for housing conditions, and a raft of anti-discrimination measures. We are well prepared for the introduction of this bill because of the progress we made before the general election.
Although some of the notice periods have been increased, we are pleased to see that the new grounds for repossession under the section 8 route that had been included in the previous bill have been kept. The “employer’s ground” (for repossession once a job is over) will still be upgraded to mandatory, and the introduction of a new ground for possession, which was proposed by the CLA, where the property is needed for an incoming agricultural worker.
Before the general election, the CLA was lobbying to include additional new section 8 grounds. These included:
- A ground for possession where the property is required for an incoming worker within the diversified rural business
- Possession where required to complete upgrade works, for example for Minimum Energy Efficiency Standards or electrical safety
- Persistent refusal of access by the tenant, where the landlord needs access to fulfill their legal obligations
Our work to introduce these grounds as amendments to the bill will continue this autumn.
The implementation provisions are complex and the commencement date for when the act will be enforced is yet to be set, but it seems that the intention is for there to be one date when the act will apply to both new and existing tenancies. The CLA will stress the importance of landlords having time to adjust to these changes and continue to argue for implementation to be delayed, for all tenancies, until the courts are ready to deal with the influx of repossession cases.
We will continue to review this new bill and will publish a summary report outlining the main points of the bill next week. We have already received notifications from the civil service bill team regarding the amendments we obtained to the previous bill, and we will continue to work with them to ensure this new incarnation is as fair to landlords as it is to tenants, and it is fit for purpose in the rural context.
In response to the bill being introduced, CLA President Victoria Vyvyan says:
In the absence of section 21 in England, it is crucial that alternative grounds for repossession are fit for purpose and the private rented sector can continue to support the efficient functioning of the rural economy.
“The court system must also be significantly improved before any such changes are introduced, so it can cope effectively with the inevitable increase in cases. The section 21 procedure does not require a court hearing but without it, all repossessions will.
“Removing section 21 without such assurances risks increasing numbers of landlords up and down the country selling up, with a recent CLA survey finding the market is already shrinking. This would make the current shortages worse, and ultimately hurt renters.
“Everyone wants to see fairness in the private rented sector, where the rights and responsibilities of both landlords and tenants are balanced appropriately. The majority of landlords are responsible, providing quality housing to millions of people, and the CLA will continue to work with government to support the rural sector.”