I wholeheartedly stand behind the Renters (Reform) Bill which will deliver on the Government’s manifesto commitment to abolish Section 21 ‘no fault’ evictions.
Through the Renters (Reform) Bill, Section 21 evictions, which I recognise can deter tenants from challenging poor practice or unfair rent increases in fear they will be forced out of their home, will be abolished. In doing this, however, it is important to ensure landlords retain their right to swiftly get their properties back where they need to. The Bill will introduce more comprehensive possession grounds for landlords, including strengthened grounds to deal with anti-social behaviour. I believe these reforms will benefit tenants too, as it will help retain landlords’ confidence in the sector and support a healthy rental market.
The Government has recently confirmed that the Lord Chancellor will publish an assessment on barriers to possession and the readiness of the courts before the abolition of Section 21 proceeds for existing tenancies. While the vast majority of tenancies end without involving the courts, I agree with Ministers that a fast and efficient court system is critical to making sure the new system works in practice. This is vital to ensuring the Renters (Reform) Bill is a success and that it delivers the fairer private rented sector that landlords and tenants deserve. The Government has started work on these reforms, with an initial commitment of £1.2 million.
These changes come in addition to new powers to create a Private Rented Sector Ombudsman which will provide fair, impartial and binding resolutions to many issues in the sector. The Ombudsman will allow tenants to seek redress for free, where their landlord has failed to deal with a legitimate complaint about their tenancy. The Government will also set up a Private Rented Property Portal which will help landlords understand their legal obligations and demonstrate compliance, giving good landlords confidence in their position. It will also increase transparency and the information available to tenants to help them make informed decisions before they decide to rent a property and enter a tenancy agreement.
Through the Renters (Reform) Bill, the Government will apply the Decent Homes Standard to the private rented sector for the first time. The Government held a consultation on this in 2022 and I look forward to reading the consultation outcome. Separately, I welcome that the Government has recently published guidance on understanding and addressing the health risks of damp and mould, which has been developed with housing and health experts. As the guidance makes clear: “Damp and mould in the home are not the result of ‘lifestyle choices’, and it is the responsibility of landlords to identify and address the underlying causes of the problem, such as structural issues or inadequate ventilation.”
Equally, no one should be barred from consideration as a prospective tenant simply because they have children or are in receipt of benefits. I share the view that such practises are unacceptable and have no place in a modern housing market. Through the Renters (Reform) Bill, the Government will make it illegal for landlords and agents to have blanket bans on renting to tenants in receipt of benefits or with children. Landlords will still be able to carry out referencing checks to make sure a tenancy is affordable and have the final say on who they let their property to. The Renters (Reform) Bill will also give tenants the right to request a pet which the landlord cannot unreasonably refuse, while giving landlords the ability to require pet insurance to cover any damage to their property.
While I sympathise with the intentions behind New Clause 39 and Amendment 257, I share the concerns of my ministerial colleagues about how these amendments could work in practice. For example, I am concerned with the principle of landlords being made to compensate tenants when they have a legitimate reason to use a possession ground, which could be facilitated by New Clause 39. While I understand the intended purpose of Amendment 257, which would amend Ground 12 (possession due to failure to carry out an obligation of the tenancy), it is worth noting that this ground for possession is discretionary. This means that a judge will consider whether the ground has been met and whether the possession is reasonable in each case. The Levelling Up Minister has been clear that the Government therefore thinks it is unlikely that a tenant would be evicted for minor breaches. Nonetheless, the Minister said he would seek to clarify in guidance when this ground ought to be used and would explore what more could be done in legislation to ensure tenants are not unfairly evicted for minor and unfair breaches to their tenancy agreement.
I also recognise concerns about so called 'backdoor' evictions, which is why I welcome that the Renters (Reform) Bill will offer stronger protections against these types of eviction by ensuring tenants are able to appeal excessively above-market rents which are purely designed to force them out. The Department for Levelling Up, Housing and Communities has been clear that, as now, landlords will still be able to increase rents to market price for their properties. If needed, an independent tribunal will make a judgement on this.
The Government has carefully listened to concerns that removing Section 21 could leave vulnerable renters without the support they require to prevent homelessness. In response, the Government has introduced an amendment to the Renters (Reform) Bill to ensure that any household served with a valid section 8 notice will be able to access support from their local authority to help prevent homelessness. Local authorities will continue to be able to assess households at risk of homelessness for any other reason within 56 days.
I remain confident The Renters (Reform) Bill will help create a fairer rental market in England and these reforms strike the right balance between delivering security for tenants and fairness for landlords. I look forward to discussing this legislation in more detail as it continues its way through Parliament.
