Renters will receive greater protections and security from eviction from today as the government introduces a ban on ‘no-fault’ evictions.

The Renters’ Rights Bill will forbid Section 21 evictions for new and existing tenancies, extend Awaab’s Law into the private rented sector and end blanket bans for those on benefits or with children.

The government says that banning Section 21 alone will reassure tenants they can challenge bad practice without the fear of retaliatory eviction, as landlords will need to provide a valid cause to end a tenancy early.

Last year, nearly 26,000 households faced homelessness as a result of a Section 21 eviction and had to go to their council for support.

Additionally, the Decent Homes Standard will be applied to the private rented sector for the first time. Currently, 21% of privately rented homes are considered non-decent and more than 500,000 contain the most serious of hazards. The government says clear expectations will be set so tenants can expect safe, well-maintained and secure living conditions.

The 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.”

Other measures introduced in the bill include:

  • Applying Awaab’s Law to the private rented sector. This will ensure that all renters in England are empowered to challenge dangerous conditions
  • Apply a Decent Homes Standard to the private rented sector for the first time. Landlords who fail to address serious hazards can be fined up to £7,000 by local councils and may face prosecution for non-compliance.
  • A ban on rental bidding wars, by cracking down on those who make the most of the housing crisis by forcing tenants to bid for their properties. Landlords and letting agents will be legally required to publish an asking rent for their property. They will also be banned from asking for, encouraging, or accepting any bids above this price
  • Ban on in-tenancy rent increases written in to contracts to prevent landlords implementing too high rents mid-tenancy, often to push out the current tenants. Under these reforms, landlords will only be allowed to raise the rent once a year, and to the market rate
  • Abolishing blanket bans on tenants with children or those in receipt of benefits to ensure fair access to housing for all.

A new private rented sector database will also be created to help landlords understand their obligations for compliance and provide tenants the information they need to make informed choices for new tenancies. It will also enable councils to focus enforcement where it is needed most.

Earlier this week, housing minister Matthew Pennycook met with landlord and tenant groups and committed to engaging with them as the bill progresses, to ensure the sector is ready for the changes.

The government says it will also ensure homes in the private rented sector meet minimum energy efficiency standards by 2030.

Ben Beadle, Chief Executive of the National Residential Landlords Association, said: “Plans to reform the private rented sector have been on the table for over five years now. Above all, renters and landlords need certainty about what the future looks like. Whilst we await the precise details of the Bill, it is vital that it works, and is fair, to both tenants and landlords.

“The end of Section 21, ‘no explanation’ repossessions represents the biggest change to the sector for over 30 years. Once the bill is passed, it is vital that sufficient time is provided to enable the sector to properly prepare. 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.”

Mark Elliott, President of the Chartered Institute of Environmental Health, said: “This bill is a step in the right direction but needs to be accompanied by better resourcing for local authority housing enforcement teams. Environmental health professionals have a crucial role to play in tackling poor housing conditions and thereby reducing ill health and saving lives.

 

“We have also urged the government to use the bill as an opportunity to make it easier for local authorities to use licensing schemes to improve housing standards.

 

“This could be done by enabling local authorities operating selective licensing schemes to use licence conditions to improve housing conditions, increasing the maximum duration of discretionary licensing schemes from five to ten years and removing the secretary of state’s ability to veto selective licensing schemes covering more than 20% of the local authority area.

 

“We look forward to scrutinising the proposals in the Bill carefully.”

Morgan Vine, Head of Policy and Influencing at Independent Age said: “It’s positive news that the desperately needed Renters’ Rights Bill is starting its journey through the UK Parliament. This Bill has the potential to deliver many of the protections that older private renters tell us they desperately need and could make a real improvement to the lives of renters of all ages across the England.

“It is a misconception that all older people own their own homes – in fact, the number of older renters is rapidly rising. Many in this group have told us that they live in a state of constant anxiety at what could happen, including the thought of being made homeless due to a no-fault eviction, having to find a new home with only 2 months’ notice, dealing with the cost of moving, or being discriminated against due to their age and financial status. Things cannot go on this way.

“Your home should be a safe haven. We look forward to working with MPs across UK parliament to put in place reforms as soon as possible which better protect financially insecure older private renters, including abolishing no-fault evictions-, so that renters of all ages have some peace of mind that they won’t be evicted from their home unfairly. People renting in later life do not have time to waste, so we urge politicians across Westminster to work quickly to better protect them.”