Property sector reacts to Renters’ Rights Bill

The unveiling of the long-awaited Renters’ Rights Bill has led to a strong reaction from the property sector.

The Bill looks set to ban Section 21 immediately when the bill becomes law – not when the court backlog has been cleared.

Other measures introduced in the Bill will include applying Awaab’s Law to the private rented sector and applying a Decent Homes Standard to the private rented sector for the first time.

Whilst tenant groups are backing the Bill, many property experts warn it won’t fix the housing crisis.

Generation Rent – Welcome news for England’s private renters

Commenting on the publication of the Renters’ Rights Bill, Ben Twomey, chief executive of Generation Rent, said: “The introduction of the Renters’ Rights Bill is welcome news for England’s private renters. The abolition of Section 21 evictions is painfully overdue and the requirement for landlords to provide a valid reason for eviction will give tenants more confidence to challenge disrepair and poor treatment by landlords and letting agents.

“Doubling notice periods for tenants when evicted will directly protect us from homelessness. However, renters risk being left with no financial support to find a new home in difficult circumstances and the government must take action to soften this blow.”

Mr Twomey adds: “The government has also promised to provide tenants with greater protections against unreasonable rent increases, but more work is required to make this a reality. The Bill will ban scheduled unaffordable rent increases being written into contracts but we remain vulnerable to backdoor rent-hike evictions.

“The proposed blanket ban on landlords pitting tenant against tenant in bidding wars cannot come soon enough, but if landlords are allowed to continue with unchecked and unaffordable rent rises, thousands more of us will still be forced into poverty and on to the streets.”

Benham and Reeves – Won’t help improve the rental market

Director of Benham and Reeves, Marc von Grundherr, said: “Today’s proposed bill from Starmer and Co stinks of sixth form politics and is intended to do little more than to win votes from renters, as it certainly won’t help improve the current rental market crisis.

“Time and time again, the government has looked to penalise landlords to ‘improve’ the rental market landscape and, time and time again, we’ve seen quality landlords exit the sector, stock levels dwindle and tenants pay the price of an out of kilter supply-demand balance.

“The sceptical amongst us might suggest that intensifying the landlord exodus is all part of the plan, as in doing so they are able to boost housing market stock levels to satisfy homebuyer demand and mask their own failings in building enough homes.”

Propertymark – Grounds for possession must be robust

Timothy Douglas, head of policy and campaigns at Propertymark, said: “Having met with the Housing Minister, it is clear his intention is for these reforms to overhaul private renting in England. They are a long-held manifesto commitment from Labour, with the new government at Westminster using their mandate for reform.

“Whilst Propertymark acknowledges the drive towards improved standards, the UK government must fully understand and recognise the impact that these changes will have with agents up and down the country left wondering how this legislation will help meet the much-needed demand for homes for people to rent.

“With such significant changes to the current tenancy regime, there must be a commitment to ensure the court system and grounds for possession are robust and fit for purpose. Furthermore, without an enhanced, effective and well-resourced enforcement regime from local authorities it is unlikely that any benefits from the reforms will be realised.

“Propertymark will continue to make the case for evidence-based policies that support a flexible and fair private rented sector for all.”

Goodlord – Courts will need to find a way to cope

Oli Sherlock, managing director of insurance, at Goodlord, said: “The stuttering, broken-record loop the industry has been stuck in over this legislation may finally be coming to an end from today. It won’t necessarily all be music to the sector’s ears, but we will at least have some clarity.

“The biggest change between the previous Renters (Reform) Bill and the new Renters’ Rights Bill will be around Section 21. The Conservative government offered the industry something of a fudge around the scrapping of no-fault evictions, with vague promises to introduce it once the courts were ‘ready’.

“Whilst we agreed with the sentiment of this, there was no timeline or action plan announced alongside. In contrast, it looks like the Labour government will scrap S21 outright and the courts will need to find a way to cope.”

Vouch – Seismic piece of legislation

Lauren Hughes, head of customer success, at Vouch said: “At first glance, this Bill will look very similar to the previous legislation, but once you scratch the surface critical differences will emerge.

“Labour has already indicated that they will go further around rent increases – including ending bidding wars and challenging unfair rent increases. However, in a way that has become familiar over the years, we have thus far been given little detail about how they will achieve this.

“Likewise, the government has decided to take the standard of private housing further by integrating the Decent Homes Standards and Awaab’s Law. And, most crucially, it appears that S21 will be scrapped as soon as the Bill passes into law. It’s a seismic piece of legislation. The industry will cope with the changes – it always does – but that doesn’t mean it will be a smooth or painless transition.”

Excello law – Landlords may decide to sell

Sarah Taylor, a property dispute resolution partner with Excello Law said: “This ban on no-fault evictions is good news for tenants and should protect them from unscrupulous landlords who decide to serve notice on the tenant with no good reason. The proposed legislation should not adversely affect good landlords who are fair and reasonable when considering when to obtain possession of their properties.

“The risk to both tenants and landlords is the existing backlogs in the Court system. Trying to obtain possession orders will be protracted, causing uncertainty and delays for both landlords and tenants.

“There is a risk that landlords who are unhappy with the proposed changes, may decide to sell their rental properties, leading to a shortage of good rental properties for prospective tenants. It remains to be seen whether the legislation will actually solve the issues that it is supposed to.”

Foxtons – Deter landlords from the sector

Guy Gittins, CEO of Foxtons, said: “Tenant welfare is a serious issue and one that quite rightly needs addressing to allow those reliant on the rental sector to not only have a roof over their head but a roof that is fit for purpose and provides the basic securities many of us take for granted.

“We’ve already seen how legislative changes designed to complicate investment and reduce buy-to-let profitability can deter landlords from the sector, inadvertently leading to a reduced level of quality rental stock and higher rents for tenants.

“It remains to be seen as to whether the court system is adequately prepared to deal with the ban on Section 21 evictions, or how the government intends to police changes to asking rent requirements.”

Crisis – Stronger action from the government

Matt Downie, Crisis Chief Executive, said: “The Renters’ Rights Bill offers a real glimmer of hope in a world that has long felt stacked against renters and will provide tenants with long-overdue security and protection against homelessness.

“Abolishing ‘no-fault’ evictions, which are the leading cause of homelessness in England, and extending notice periods, are just some of the very welcome measures that will ease the anxiety experienced by hundreds of thousands of renters. They will finally be able to sleep at night knowing they won’t wake up tomorrow faced with the threat of homelessness.

“But there is still work to be done. We need stronger action from the government to ensure people can afford their rents, and for the Bill to be passed quickly to stop a rush of renters being served an eviction notice over the coming months. For now, we’re delighted to finally see some good news for renters.

Shelter – Watershed moment for renters

Polly Neate, Chief Executive of Shelter, said: “The Renters’ Rights Bill is a watershed moment for England’s 11 million renters. By extending notice periods and ridding the country of the gross injustice of Section 21 evictions, renters will no longer live in fear of being booted out of their homes for no reason, with too little notice.

“This Bill will do far more to protect tenants than previous failed attempts, but renters shouldn’t be forced out by colossal rent hikes once the government pulls the plug on Section 21. More than 60,000 renters were walloped with extortionate rent hikes that cost them the roof over their head in the past year alone.

“To truly deliver the stability England’s renters need, the Bill must limit in-tenancy rent increases so they’re in line with either inflation or wage growth. It must also protect renters from eviction for two years and stamp out discriminatory practices like demands for huge sums of rent in advance that drive homelessness.”

Zero Deposit ­– Looking to get renters onside

Sam Reynolds, CEO of Zero Deposit, said: “Labour’s decision to force through the ban on Section 21 evictions seems a tad knee-jerk at best and it’s clear that they are looking to get renters onside without considering the serious long-term implications this could have on the wider rental market.

“Yes, improving standards is a goal we should all be working towards, but we need to have the proper processes in place in order to make a meaningful change that won’t come at the further detriment of tenants.

“Today’s decision is likely to deter more landlords from the sector, a migration that has already intensified under the new Labour government’s short tenure, further reducing the levels of quality accommodation available to tenants and driving rents ever higher in the process.”

Payne Hicks Beach – Court system is broken

Scott Goldstein, partner and property disputes specialist at law firm Payne Hicks Beach, comments: “The plan to abolish section 21 no fault evictions for existing tenancies as well as new tenancies will send a shockwave through the sector. It shows that the new government means business.

“Expect a huge surge in section 21 notices served in the time before the legislation takes effect; and a bulge in possession proceedings two months later when the notices expire.

“The county court system is completely broken.  It now takes many weeks to process claims. We must hope that the government invests in the courts to cope with the expected influx in new claims.”

Safeagent – Not deliver government aspirations

Isobel Thomson, chief executive of safeagent, the UK’s largest not-for-profit accreditation scheme for lettings and management agents, says:  “A thriving private rented sector is vital to provide much-needed safe and secure housing for tenants. The wide-ranging measures contained in the Bill represent a major change to the way in which the sector operates, particularly with the abolition of Section 21.

“If the real change as proposed in the Bill is going to come, and confidence retained among landlords, we need to know what the infrastructure is that sits behind it and how the measures will be implemented. Councils are struggling now with existing legislation so where are the enforcement officers ready to take action when this new legislation appears?

“Whatever the final outcome of the Bill, the sector has to work for all or it will not deliver the government’s aspirations.”

London Councils’ – Tenants deserve stronger protections

Councillor Grace Williams, London Councils’ Executive Member for Housing & Regeneration, said: “Three million Londoners live in private rented sector homes and undoubtedly deserve stronger protection.

“Boroughs support a ban on no-fault evictions. Too often we’ve seen Londoners turfed out of their homes for no good reason and made homeless, turning their lives upside down. With London’s homelessness pressures at record levels, banning these evictions is a crucial step forward.

“Boroughs will work both with the government and with landlords to ensure these reforms are as successful as possible. Part of that means ensuring boroughs are provided with the powers and resources we need to enforce the new rules. We will also work alongside minsters in tackling the other deep-seated issues driving London’s housing pressures and rapidly escalating homelessness crisis – especially the chronic shortage of affordable housing.”

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