18th
May 2021
Last week’s Queen’s Speech (Tuesday 11th May) announced that the 2019 Renters Reform Bill will finally make it to the House Commons this year with its White Paper made available around Autumn involving a further consultation.
Over the last two years the private rented sector has been extremely wary of the Bill’s principles with the most onerous being scrapping the existing Section 21 eviction powers, together with the introduction of tenants one-off lifetime deposits to be passported from landlord to landlord, and improving Section 8 rights to possessions.
However one industry body is very positive of the government’s announcement of a further Bill consultation prior to being made law.
A spokesperson for the trade body said: “We welcome the government’s commitment to publish a White Paper on reforms to the rental sector and consult widely before introducing a Bill.
“What is proposed amounts to some of the biggest changes in the private rented sector for over 30 years. We urge the Government and all others in the sector to use the time they now have to ensure that the reforms are fair and workable for both tenants and landlords.
“This must include comprehensive grounds upon which landlords can legitimately repossess properties, the development of a new tenant-landlord conciliation service to help sustain tenancies wherever possible and court reform to ensure possession cases are dealt with much quicker than the year or more currently being taken.
“Lifetime deposits for tenants provide an opportunity to reduce the upfront cost of renting, but they need to work for all concerned.
“We welcome also the Government’s ambitions to drive out bad landlords from the sector without penalising those who do the right thing. We want to root out all those who bring the sector into disrepute.”
Another sector body is also backing the government’s White Paper announcement as its spokesperson said: “The announcement … that the government will publish a Renters Reform White Paper in the Autumn demonstrates that Ministers are prepared to engage with the industry to understand the impact any substantial legislative changes will have on those involved in the private rented sector.
“With the focus of the new package on lifetime deposits, landlord redress and greater enforcement, the government must look at ensuring that a system that would allow deposits to be passported can only take place if there is a bridging loan, with the government as the guarantor, in order to ensure the remaining part of the deposit is covered should the tenant default.
“Additionally, the government must prevent ‘double jeopardy’ and only extend redress membership to properties that are fully managed.”
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