Renters to get more security as government moves to ban 'no-fault' evictions amid range of other housing reforms

11 September 2024, 06:04 | Updated: 11 September 2024, 09:16

Renters are set to get more security after the government proposed banning "no-fault" evictions.

Ministers said that they would ban landlords from kicking people out of their homes for no reason, in what is known as a Section 21 eviction.

The Conservatives had already proposed similar legislation in their Renters' Rights Bill, which did not go through parliament before the election.

After Labour announced stronger proposals on Tuesday night, renters' and housing groups welcomed the move, but the landlords' association warned that the law must be affair to both tenants and property owners.

The Tories called for the new bill to be "proportionate" and warned against strengthening renters' rights further with rent controls.

Announcing the proposed law change, the government said good landlords "will benefit from clear regulation" which "will eliminate unfair competition from those who, for far too long, have got away with renting out substandard properties to tenants".

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Ministers said they would go further than previously proposed by banning section 21 evictions for both new and existing tenancies, with research by charity Shelter finding 26,000 households have been evicted through the process since 2019.

Also included in the reforms is a legal requirement for landlords and letting agents to publish the required rent for a property in a crackdown on the practice of forcing potential tenants into a bidding process.

The Bill will also extend Awaab's Law - named after the toddler who died after exposure to mould in his family's social rented home - to the private sector to ensure all landlords speedily address hazards and make homes safe.

In addition, the Bill would end blanket bans imposed by some landlords on those receiving benefits or with children.

A Decent Homes Standard will be applied to the private rented sector for the first time, with the Government highlighting that 21% of privately rented homes are currently classified as "non-decent" and more than 500,000 contain the most serious hazards.

Landlords and agents will be banned from "asking for, encouraging, or accepting any bids" above the publicly stated price.

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."

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The Bill would also ban rent increases being written into contracts to prevent mid-tenancy hikes, leaving landlords only able to raise rent once a year at the market rate.

A new private rented sector database will also be created to clarify landlords' obligations, enable tenants to make informed choices and improve councils' enforcement.

Responding to the Bills publication, Polly Neate, Shelter chief executive, said Section 21 "has haunted England's renters for years" and "11 million of them will breathe a sigh of relief when these unjust evictions are finally consigned to the history books".

She added: "The Renters' Rights Bill must be a fresh start to fix private renting. With notice periods so short and more than 60,000 renters forced out of their homes by rent hikes in the past year alone, renters will expect bold action to deliver the security they've long been promised - no ifs, no buts.

"If the Government is serious about making renting genuinely safer, secure, and more affordable, the Bill must guarantee renters greater protection. Renters need to know they won't be booted out of their homes by eye-watering rent hikes and the discriminatory practices that push so many into homelessness must be stamped out."

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Ben Beadle, chief executive of the National Residential Landlords Association (NRLA), said landlords and renters need certainty and reforms must be fair to both.

He added the end of Section 21 evictions "represents the biggest change to the sector for over 30 years" and "sufficient time" will be needed for the sector to prepare.

Mr Beadle said: "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."

He added that the NRLA supports measures to ensure every rental home is of a decent standard, but warned the changes need to be back up by "robust" enforcement by councils.

A Conservative spokesperson said: "Conservatives believe in ensuring choice and freedom, whatever home they live in.

"But new regulation must be necessary and proportionate.

"Otherwise, as it has in Scotland, badly drafted laws will cut supply, forcing up rents and reducing choice for renters.

"We await to see the details of Labour's proposals and hope they are more coherent and thought-through than their interventions in other policy areas so far.