The new government has promised to introduce legislation to give greater rights to those who rent their homes. The Renters’ Rights Bill shares many similarities with the Renters’ Reform Bill proposed by the previous government but never came into force.
Prior to the general election, the new government said that it intended to abolish “no fault” evictions under Section 21 immediately. While this was always going to be impossible given the need to go through Parliament first, the rhetoric shows that the government intends to prioritise reforms to the private rented sector.
Key proposals of the Renters Rights’ Bill
The key proposals of the bill are:
Extension of Awaab’s Law to private landlords
One of the main differences between the bill proposed by the former government and the current one is the extension of Awaab’s law to the private sector which means private landlords will be required to resolve damp and mould issues within a specific timeframe in the same way that social landlords are.
New grounds for possession
The previous government had planned to expand the grounds which allow landlords to recover possession under Section 8 of the Housing Act 1988, including a ground allowing landlords to recover possession if they intend to sell their property. The new government is expected to add this ground, but to make it more advantageous to tenants by including a proviso that landlords will not be able to sell within the first year of a tenancy. This could be a problem for landlords in financial difficulties who need to sell their property quickly.
Reform of the court system
The previous government said that it would not abolish Section 21 before reforming the court system. So far, the new government has not said anything about this. Section 21 possession claims were largely decided on paper. Possession claims based on Section 8 are heard before a judge. It follows that the abolition of Section 21 is likely to result in an increase in the number of possession hearings which may to add to court backlogs and mean that landlords have to wait longer to obtain possession of their properties.
Hopefully, the draft bill will include measures to mitigate any delays caused as a result of the abolition of Section 21 and any other changes.
Implications of the Renters’ Rights Bill for landlords
If implemented, the proposals would mean that landlords have far less control over their properties. However, the position remains uncertain as the draft bill is at such an early stage. It may well be that some of the proposals are watered down or abandoned as a result of debate in Parliament. We will provide a further update once the draft bill has been published. In the meantime, landlords should be prepared for changes and watch this space.
