The bill banning Section 21 evictions will come to the House of Commons for its first reading today.
The Renters’ Rights Bill will also restrict bidding wars, as well as protect tenants whose landlords want to sell or move in.
The previous Conservative government pledged to scrap Section 21 evictions, but failed to do so for five years after initially proposing the policy.
Letting agents and landlords have raised concerns that scrapping Section 21 evictions will further put pressure on the court system, heightening fears that many private landlords will flee the sector, adding to the widening supply-demand imbalance in the market.
Timothy Douglas, head of policy and campaigns at Propertymark, commented: “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 evidenced based policies that support a flexible and fair private rented sector for all.”
Also speaking ahead of publication of the Renters’ Rights Bill later today, Ben Beadle, chief executive of the National Residential Landlords Association (NRLA) 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.
“The end of Section 21, ‘no explanation’ repossessions represents the biggest change to the sector for over 30 years. Once the Bill is passed, it is vital that sufficient time is provided to enable the sector to properly prepare. Over 4.5 million households will need tenancy agreements updating, letting agent staff and landlords will need to undertake training and insurance and mortgage providers will need to adjust policies and rates. None of this will happen overnight and the Government needs to publish guidance.
“In addition, ending Section 21 will leave the courts needing to hear possession claims where landlords have a legitimate reason. The cross-party Housing Select Committee has warned that without reforms to ensure the courts process cases much more swiftly, they risk becoming overwhelmed. This will not serve the interests of tenants or landlords seeking justice.”
In respect of plans to improve the quality of rental housing, Beadle added: “Too often the actions of a minority of rogue and criminal landlords have brought the sector into disrepute. We therefore support measures to ensure every rental home is of a decent quality, and swift action is taken where standards threaten the health of tenants. However, this all needs to be backed up with robust enforcement by councils.”
