11th
Sep 2024
The long threatened Renters Bill has been introduced into Parliament today (Wednesday 11th) in its latest ‘Laboured’ version as reported across the media.
The Guardian newspaper reported the Bill will include measures to protect tenants whose landlords want to move back into their properties or to sell up, and will also regulate against tenant applicant’s bidding wars to ‘win’ the right to tenancies for newly available properties.
However there are apparently no plans to ensure rent increases are not capped at wage growth or inflation.
The most contentious issues within the Bill are whether the government intends to abolish Section 21 evictions in the immediate future and introduce longer notice periods for issuing eviction notices.
Dan Wilson Craw, deputy chief executive of Generation Rent, comments: “Evictions have surged in recent years so it is welcome that the government is acting quickly to introduce legislation to tackle this crisis. The abolition of Section 21 evictions is long overdue and requiring landlords to provide a valid reason for eviction will give tenants more confidence to challenge disrepair and poor treatment by landlords and letting agents.
“Under the last Government’s proposals, landlords could still evict tenants if they wanted to sell or move in, just six months into the tenancy, with only two months’ notice and with no support to find a new home. Renters will be reassured that the government is planning longer notice periods and other protections in these cases. These should include more time in our homes without fear of losing them, and support with the costs if we are asked to move for reasons beyond our control."
He also claimed it will be a “missed opportunity” if landlords are allowed to continue in raising rents exponentially which will lead to tenants having to find new accommodation or becoming homeless.
Landlords will also not be able to include mid-tenancy rent increases in contracts and will only be able to raise the rent once a year, akin to the market rate.
There will be a Private Rented Sector Database to ensure that landlords are made fully aware of their obligations to comply with regulations and provide tenants with sufficient advice and information they need to make informed decisions for new tenancies.
Measures or funding will be introduced to make sure councils are focussed on enforcement where it is most needed.
Housing Secretary 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 re-balance the relationship between tenant and landlord. This Bill will do just that and tenants can be reassured this Government will protect them.”
A spokesman for a trade association said it does support some of the measures but states landlords must be given strong repossession grounds if and when Section 21 notices are banned..
He 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.”
Richard Merrick of PIMS, says: “ Perhaps Labour may take into account the damage it could wreak on the PRS housing stock by abolishing S21 quickly without sufficiently protecting landlords, resulting in tenants being made homeless and of course the failing overburdened social housing sector will be unable to provide alternative accommodation.”
PIMS assessment of the RENTERS Reform Act below based on premise the bill proceeds as intended
The vast
majority of landlords shall become subject to this new legislation - so, understand the impact of the new eviction laws and ask yourself do you
want to trust certain tenants with the extra protection that the new
laws shall afford them
- Section 5 of the Bill includes
"Power to make consequential provision" which is a Carte Blanche
ability to vary scope and open to abuse [There is no time-limit on the
making of regulations under this clause]. The law dates back to Henry
VIII we can only hope Landlords fair better than his wifes' did.
|
Removing Tenants and Eviction
Banning Restrictive Clauses in Tenancy Agreements
|
Greater Levels of accountability and compliance - CAPPING RENTS
|
- PIMS TIPS - SADLY BETTER TO USE
THE SECTION 21 THIS YEAR - (BEFORE YOU LOSE YOUR RIGHT - for a
landlords right Issue a Section 21 Notice on a Tenant will be removed
-
All tenancies shall become Assured Tenancies -The tenant shall
have security of tenure until they leave voluntarily, or a landlord can
satisfy a court that the tenant should be ordered to leave because the
Landlords needs outweigh the Tenants (reasonable circumstances, which
will be defined in law)
-
So, the Section 21 shall cease
to exist and be replaced with New Grounds under a fault based eviction
using the Section 8 Notice - The Governments stance is the new
Eviction grounds shall be "comprehensive, fair, and efficient, striking a
balance between protecting tenants’ security and landlords’ right to
manage their property". PIMS View is pure hot air.
PIMS NEW- SECTION 21 NOW S8
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