Renters' Bill aims to create 'level playing field between tenants and landlords'
The tougher plans have been welcomed by homelessness and renters' rights charities, as ITV News Investigations Editor Daniel Hewitt reports
Landmark legislation proposing a blanket ban on no-fault evictions and an end to rental bidding wars has been introduced to Parliament.
The Renters' Rights Bill, published on Wednesday, will ensure greater security for the 11 million people in England renting their homes.
The government said it will create a "level playing field between tenants and landlords".
No-fault evictions and mid-tenancy rent hikes will be banned under the tougher plans, in a bid to crack down on "disreputable landlords".
The plans must be approved by MPs and peers, who could propose further changes, before they become law.
Renter groups have welcomed the bill, while landlords said the sector needs to be given "sufficient time" to prepare for the changes properly.
"Good landlords have nothing to fear," said Housing and Planning Minister Matthew Pennycook.
Speaking to ITV News, he said: "Many people live in completely substandard accommodation, for fear that a complaint will lead to a retaliatory eviction.
"We have to overhaul the regulation of the private rented sector to ensure they have the rights and protections they need and deserve."
'The changes have been long overdue', says Housing and Planning Minister Matthew Pennycook
The government has confirmed the legislation includes a blanket ban on no-fault evictions under section 21, which allows landlords to evict tenants with two months’ notice without providing a reason.
The previous government pledged to end section 21 evictions but concern about its impact on landlords and the courts was set to lead to a delay in implementation.
The Conservatives’ Renters (Reform) Bill then ran out of time to progress through Parliament before the election.
The new Government said it will 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 by bailiffs as a result of section 21 proceedings since 2019.
Jade, who is being evicted next week, told ITV News that privately renting in England creates instability that provides no security for her and her child.
"I've always lived in fear that he is going to come and kick me out whenever he wants," she said.
"I'm going to have to move out of here, my little boy has just started school. It's upsetting."
Official figures from the Ministry of Justice, published in August, showed bailiff repossessions as a result of a Section 21 no-fault eviction reached the highest level for six years.
Landlords can apply for an accelerated possession order if the tenants have not left by the date specified in a Section 21 notice.
There were 2,916 such repossessions between April and June this year, an increase of 31% on the same period last year and the highest quarterly figure since the beginning of 2018.
If the changes prompt some landlords to sell their buy-to-let properties, this could open up space for professional private rental providers to come into the sector and “drive some improvement for tenants” rather than reduce overall rental stock, Mr Pennycook said.
Other measures of the bill include:
Extending 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.
End to 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.
Crackdown on bidding wars between potential tenants with a legal requirement for landlords and letting agents to publish the required rent for a property.
Landlords and agents will be banned from “asking for, encouraging, or accepting any bids” above the publicly stated price.
Give all tenants the right to ask to keep a pet in their home. Landlords cannot unreasonably refuse.
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.”
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 that 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.”
Dame Clare Moriarty, chief executive of Citizens Advice, said the bill is a "critical and long overdue step".
“We're seeing record numbers of people seeking help with no-fault evictions - an average of 100 people every single day," she said. "And more than 70% of those we’ve helped with no-fault evictions this year were at risk of being made homeless."
She added that the section 21 ban needs to be watertight "to prevent rogue landlords from exploiting loopholes, or using unfair rent hikes to force tenants out.”
A Conservative spokesperson said the regulation must be "necessary and proportionate".
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