How the Renters’ Rights Bill will affect PRS landlords

How the Renters’ Rights Bill will affect PRS landlords

9:17 AM, 18th July 2024, About A week ago 45

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Landlords have another battle on their hands with news that the Renters’ Rights Bill will pick up where the Renters (Reform) Bill failed to deliver.

Despite a 2019 manifesto pledge, the RRB was binned by the Conservatives after Rishi Sunak called a General Election.

Now Labour is promising to ‘take action where the previous government has failed’ on the protection for renters.

Below, we give details of what landlords can expect from the new legislation.

‘Everyone can grow up in secure housing’

Prime Minister Sir Keir Starmer said: “Too many people currently live with the threat of insecurity and injustice, and so we will make sure everyone can grow up in the secure housing they deserve.

“We will introduce tough new protections for renters, end no-fault evictions and raise standards to make sure homes are safe for people to live in.”

The Labour says that more than 11 million renters in England face constant anxiety because they could be evicted with little warning and for no reason.

It adds that this fear traps many tenants in poor-quality housing because they’re afraid to complain about being kicked out in retaliation.

‘Contribution made by responsible landlords’

The Labour Party says: “We value the contribution made by responsible landlords who provide quality homes to their tenants and believe they must enjoy robust grounds for possession where there is good reason to take their property back.

“However, the Government is determined to level decisively the playing field between landlord and tenant by providing renters with greater security, rights and protections and cracking down on the minority of unscrupulous landlords who exploit, mistreat or discriminate against tenants with bad practices such as unfair rent increases intended to force tenants out, and pitting renters against each other in bidding wars.”

‘Transform the experience of private renting’

It goes on: “The Renters’ Rights Bill delivers our manifesto commitment to transform the experience of private renting, including by ending Section 21 ‘no-fault’ evictions – we will take action where the previous government has failed.

“The Bill will give renters much greater security and stability so they can stay in their homes for longer, build lives in their communities, and avoid the risk of homelessness.”

Labour also says the PRS must provide flexibility for those who want it, and that too many renters are ‘being exploited by a minority of unscrupulous landlords’.

Challenges faced by millions of private renters

The government says this Bill will tackle the challenges faced by millions of private renters in England, including 1.4 million families with children and 444,000 households with over-65s.

In 2023, ‘no-fault’ evictions threatened a record 25,910 families with homelessness, while 2,682 were evicted – a worrying 19% increase in just a year.

The government also points to soaring rents which have jumped from a 2% annual growth to 9% in March.

That rise means tenants, on average, spend 38% of their income on rent, compared to 21% for homeowners and 27% for social housing tenants.

Also, one million private rented homes are considered non-decent, and more than half a million have serious health hazards like damp and mould.

What is planned under the Renters’ Rights Bill?

To help private landlords understand what is planned under the Renters’ Rights Bill, here are the full details published by the government:

  • Abolishing Section 21 ‘no-fault’ evictions, removing the threat of arbitrary evictions and increasing tenant security and stability. New clear and expanded possession grounds will be introduced so landlords can reclaim their properties when they need to.
  • Strengthening tenants’ rights and protections, for example we will empower tenants to challenge rent increases designed to force them out by the backdoor and introduce new laws to end the practice of rental bidding wars by landlords and letting agents.
  • Giving tenants the right to request a pet, which landlords must consider and cannot unreasonably refuse. Landlords will be able to request insurance to cover potential damage from pets if needed.
  • Applying a Decent Homes Standard to the private rented sector to ensure homes are safe, secure and hazard free – tackling the blight of poor-quality homes.
  • Applying ‘Awaab’s Law’ to the sector, setting clear legal expectations about the timeframes within which landlords in the private rented sector must make homes safe where they contain serious hazards.
  • Creating a digital private rented sector database to bring together key information for landlords, tenants and councils. Tenants will be able to access information to inform choices when entering new tenancies. Landlords will be able to quickly understand their obligations and demonstrate compliance, providing certainty for tenants and landlords alike. Councils will be able to use the database to target enforcement where it is needed most.
  • Supporting quicker, cheaper resolution when there are disputes – preventing them escalating to costly court proceedings – with a new ombudsman service for the private rented sector that will provide fair, impartial and binding resolution, to both landlords and tenants and reducing the need to go to court.
  • Making it illegal for landlords to discriminate against tenants in receipt of benefits or with children when choosing to let their property – so no family is discriminated against and denied a home when they need it.
  • Strengthening local councils’ enforcement powers. New investigatory powers will make it easier for councils to identify and fine unscrupulous landlords and drive bad actors out of the sector.

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Ray Guselli

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13:52 PM, 18th July 2024, About A week ago

Through the Renters Reform Bill, all major political parties, with the exception of Reform, have embarked upon a campaign, alongside the charity Shelter and Generation Rent, to criticise private sector landlords (PRS) in an attempt to disguise the failure of successive governments to deal with the housing crisis and ignore the problems some tenants create.

The manner of gaining possession of a property through the use of Section 21 (wrongly referred to as a no-fault eviction) has been criticised, with the intention being for it to be scrapped and replaced with an alternative mechanism, through Section 8. Angela Rayner, vociferous in her attacks has suggested that the ban will take effect immediately Labour is in control (presumably under special provisions similar to those employed when covid was an issue) allegedly related to a housing crisis: a crisis of the Government’s own making: that however, has not happened. First broken promise Angela?

In doing so, whilst recognising that the courts, which are already unable to meet current demands, the introduction of an alternative means of gaining possession through Section 8, will require even greater court time: in fact, substantially more as the process under section 8, Labour (and others) will press ahead knowing they are going to cause an even greater catastrophe in an attempt to protect tenants; regardless of the behaviour or problems with the tenants.

Some of these tenants are being evicted because of substantial rent arrears, damage to property, serious anti-social behaviour, drug related problems, violence, breaches of the tenancy and a raft of other issues, which the political parties care to ignore, in their pursuit of gaining votes from tenants.

The use of a Section 21 provides not only a clear and simple mechanism for landlords to gain possession under these circumstances in a relatively straight forward and efficient manner, relying less on court time than the Section 8 alternative, but it does so, whilst also disguising the problems caused by the tenant, often avoiding embarrassment. Ad landlords, we would not evict a good tenant.
Under the proposals being made, Section 8 requests for possession will require a detailed description of the grounds being relied upon which, as a public document, may be available for all to see. Tenants will no longer be able to hide behind the anonymity of Section 21 and the problems associated with them will now become public.

However, what is clear is that, whatever the circumstances, landlords may find difficult in gaining possession of something they have likely worked hard to acquire over many years, their legal ownership now being undermined by political parties, who have failed to provide adequate housing and now look to someone to blame: and of course, curry favour with tenants in the hope of gaining their votes.

The result of this ill-conceived change to gaining possession and scrapping of Section 21 will inevitably be a reduction in available housing stock for rental, as many landlords, fearful of yet even more regulation and red-tape, sell up.

Once again, all major parties highlight the need to protect the tenants with almost daily monotony and refer to a levelling-up in favour of tenants. None, except for Reform recognise that landlords are providing an essential service to the country and economy but with absolutely no support from government. (I am not advocating votes or support for Reform, simply offering what appears to be the situation.

Landlords witness their properties being wrecked, with no rent paid, perhaps used as a drug den coupled with anti-social behaviour over which they have little if any control and absolutely no redress. Action is costly and time consuming and courts cannot cope.

Of course, MP’s and Ministers, in their detached and isolated world suggest landlords have a means of recourse whereby we can go to court to get possession and/or get a County Court Judgement to cover the debt and arrears of rent.

In the real world this does not happen.

Landlords can get a County Court Judgement, but given that many tenants have no assets, it is a costly and ineffective resolution, leaving landlords even further out of pocket. Where a tenant is working and/or has assets, the apply for an Individual Voluntary Arrangement or a Debt Relief Order, perhaps coupled to even more help through the Breathing Space Scheme.

By now, you might recognise that the levelling up is levelling the wrong way.

Of course some landlords are now insistent upon deposits and guarantors as a limited means of protection; reducing even further the availability of property available to rent as some cannot meet these requirements.

The property belongs to the landlord, yet they may soon be required to allow pets in properties, regardless of the damage that they may cause and the ineffective redress available. Insurance is not a solution.

We often see landlords accused of providing properties riddled with black mould, which has, for whatever reason, but often tenant lifestyle and condensation, occurred over a long period of time, during which there has clearly been absolutely no effort to clean it or wipe it down: tenants preferring instead to remain in a potentially unsafe environment and do nothing to help the situation, often one caused by how they live.

Have you noticed how we never see the problems landlords endure, where their properties have been trashed, wrecked and left in the most disgusting state, where because they are not allowed to inspect, if the tenant says they cannot have access, they are unable to do something before it is too late.

And under Labour, there will be a National Landlord Register to enforce standards. Of course nothing is said about a register for bad tenants which landlords are not allowed to keep. No register to identify tenants who owe £000’s, wreck properties, display anti-social behaviour and/or deal drugs from a property: perhaps these are target Labour voters?

I am afraid that the King’s speech did nothing to address the levelling up that is allegedly needed and which if anything, should level up in a balanced manner for all.

Thought of writing to Rayner and crew but pointless, because, like Gove before, they have already displayed an ignorance of the situation and either do not understand, or do not want to, what the big picture is ,but instead prefer soundbites to appease potential future voters.

I am not opposed to Section 8 but clearly the court system is already under pressure and unable to cope and I think Government needs to understand that for many, whilst they “see” systems in place for landlords to deal with problems, they do not understand or realise that those systems often do not provide a solution.

JB

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14:05 PM, 18th July 2024, About A week ago

"Tenants will be able to access information (about landlords) to inform choices when entering new tenancies"
I look forward to accessing information about tenants to inform choices when entering a new tenancy.
Measures should be fair for tenants AND landlords

David Houghton

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15:12 PM, 18th July 2024, About A week ago

Reply to the comment left by at 18/07/2024 - 12:12
It will. Tne day before the bailiffs are due the local council may apply for breathing space. Giving the tenant another 2 months rent free.

That's why we use s21.

Darren Sullivan

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15:16 PM, 18th July 2024, About A week ago

Right it’s the 18/7/2024. The election was on 04/07/2024. Angela Rayner you said you would abolish section 21 on DAY 1 of gaining power ??? 👂👂

I don't see anything on the news or anywhere else for that matter. There is a long long long way to go in this drama that will play out for at least another two years.

It has to be debated again in parliament and the Lords does it not.

Long way to go yet. Nothing to see here move along now 😂

Cider Drinker

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15:27 PM, 18th July 2024, About A week ago

Never forget that it’s not about protecting tenants. It’s all about buying votes with other people’s money.

Khan wants to fill London with his voters. Labour and the Conservatives before them wanted to be popular amongst a large group of the electorate. That is how our democracy works - a kind of mob rule.

R L

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15:39 PM, 18th July 2024, About A week ago

Does anyone know what will happen to currently running assured shorthold tenancies? Will they be instantly nullified if the RRB goes through? I have AST's on two properties, signed in May 2024. This is arranged through a letting agency. One property has a mortgage, for which tenancies beyond one year AST duration (but renewable) are not permitted by the mortgage lender.

Ian Narbeth

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15:50 PM, 18th July 2024, About A week ago

Others have made plenty of valid points. I would add two. Labour talk of:

"Making it illegal for landlords to discriminate against tenants in receipt of benefits or with children when choosing to let their property – so no family is discriminated against and denied a home when they need it."

Sorry, some families that "need" a home will not be able to afford one in the private sector. Landlords will discriminate (meaning choose wisely) if the tenants are unable to pay the rent and/or cannot provide decent references from a previous landlord confirming that they looked after the property and that he would rent to the tenant again.

The second point is the criticism about mould. Awaab's case has triggered this. (Incidentally, the landlord was Rochdale Boroughwide housing association). That was tragic and the tenant was not at fault.

Generally it is in only a minority of cases that mould is the fault of the landlord. Most of the time it is caused by tenants not ventilating their homes, not heating them adequately (perhaps through shortage of money but that is not the landlord's fault), drying laundry indoors, not cleaning regularly with appropriate products and waiting until the problem is really bad before complaining by which time serious and expensive damage may have been caused. It is noteworthy that owner-occupiers don't have mould problems when living in similar houses to tenants.

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16:01 PM, 18th July 2024, About A week ago

Reply to the comment left by at 18/07/2024 - 12:12
May I ask a question please, I have been advised that I will need to use a S8 to evict a tenant due to not having a gas safe cert from when they moved in. I did have one but unfortunately had a tidy up and threw it out. Thought there would be a central database but apparently none exists. For your eviction did you use an eviction specialist and if so can I ask who please

Ian Narbeth

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16:34 PM, 18th July 2024, About A week ago

Reply to the comment left by jane macswayne at 18/07/2024 - 16:01
If you can remember the gas engineer who issued the certificate, try asking them for a copy or duplicate.

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16:35 PM, 18th July 2024, About A week ago

Reply to the comment left by Ian Narbeth at 18/07/2024 - 16:34
Did ask him but said doesn't have anything, use a different plumber now so tbh wasn't expecting much help

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