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Landlords and renters are facing the biggest changes to the private rental sector in decades under new legislation that will end “no fault” evictions and tighten standards for the conditions and maintenance of rented homes.
The renters rights’ bill, introduced by the government on Wednesday, goes further than legislation proposed by the former Conservative government to end evictions under section 21, which allows landlords to throw out tenants with no reason.
The Tory bill fell when parliament was dissolved ahead of July’s general election. The Labour government is increasing the requirements for landlords and protections for the 11mn renters in England.
“There can be no more dither and delay. We must overhaul renting and rebalance the relationship between tenant and landlord,” deputy prime minister Angela Rayner said.
What are the biggest changes?
“No fault” evictions have been used as the easiest way for landlords to get rid of tenants, and landlord groups have called the reform “the biggest change to the sector for over 30 years”.
Another major change is the application of the “decent homes standard” to private rental homes. This long standing regulation for the social housing sector sets minimum standards for the basic state of repair of properties, including windows, roofs and heating systems. The government said about a fifth of private rental homes would need upgrades to meet the standard.
Landlords will also not be allowed to bar prospective tenants with children or who receive benefits — and tenants will be able to request permission to have a pet, which landlords cannot “unreasonably” refuse.
What is different in Labour’s bill?
Housing minister Matthew Pennycook told the BBC on Wednesday he is aiming to abolish “no fault” evictions by next summer. The Conservatives ultimately yielded to pressure from landlords, saying they would delay the implementation to give the court system more time to prepare for the extra cases.
To try to stop bidding wars, the bill requires landlords to publish the rental price and bans them or their agents from “encouraging or accepting any bids above this price”, according to the housing ministry. Foxtons chief executive Guy Gittins said it was not yet clear “how the government intends to police changes to asking rent requirements”.
It will also go further on tightening standards for the condition of properties by extending Awaab’s Law to private rental homes. The law, named after two-year-old Awaab Ishak who died after prolonged exposure to mould in his social home, sets deadlines for how quickly landlords need to fix “serious hazards”.
The government also said it will consult on measures to raise energy efficiency in rental homes by 2030.
How might the reforms change the rental market?
Rents have been rising at a record pace over the past year, increasing by 8.6 per cent in the 12 months to July, according to the Office for National Statistics.
Labour hopes the bill will “decisively [level] the playing field between landlord and tenant”, giving tenants more power to push back on unfair rent demands and poor conditions.
However, increased regulation and the cost of upgrading properties will also add to financial pressures on landlords. Some landlords have already been financially squeezed by higher mortgage rates, and increasing numbers are choosing to sell their properties.
Industry groups are particularly concerned that landlords seeking to get rid of problem tenants for legitimate reasons will be stuck with huge delays.
The British Property Federation said: “Our primary concern remains the ability of the courts to deal with the increased workload that will come their way without [section] 21.”
The new measures include an ombudsman service for the private rented sector, which the housing department said would provide “fair, impartial and binding resolution, to both landlords and tenants and reducing the need to go to court”.
