Details of Labour's new Renters' Rights Bill published Wednesday 11th Sept 2024
Will the abolition of Section 21 evictions be paired with a court system that is efficient and effective?
The Renters' Rights Bill also aims to curb bidding wars and safeguard tenants whose landlords intend to sell or move into their properties. The previous Conservative government promised to abolish Section 21 evictions but failed to implement the policy for five years after first proposing it.
Letting agents and landlords have voiced concerns that eliminating Section 21 will increase pressure on the court system, raising fears that many private landlords may exit the market, further aggravating the ongoing supply-demand imbalance.
It was suggested that "With such major changes to the current tenancy laws, it is crucial that the court system and grounds for possession are strengthened and fit for purpose. Additionally, without a robust, efficient, and well-funded enforcement mechanism from local authorities, the potential benefits of these reforms may not be fully realised."
Ahead of the Renters' Rights Bill publication on Wednesday, 11th September 2024, Ben Beadle, CEO of the National Residential Landlords Association (NRLA), commented: "Reforms to the private rental sector have been under discussion for more than five years. Above all, both renters and landlords need clarity on what lies ahead. While we await the Bill's specifics, it is essential that the legislation is balanced and fair for both parties."
Ben Beadle continued, "Ending Section 21 'no-fault' evictions represents the most significant change to the sector in over 30 years. Once passed, the sector will need sufficient time to adjust. More than 4.5 million households will require updated tenancy agreements, letting agents and landlords will need training, and insurance and mortgage providers will need to revise policies and rates. None of this can be achieved overnight, so it's imperative the government provides clear guidance."
He added, "The end of Section 21 will mean that courts must handle possession claims where landlords have legitimate reasons. The cross-party Housing Select Committee has warned that without reform to accelerate the court process, the system could become overwhelmed, which would be detrimental to both tenants and landlords seeking justice."
On improving rental housing quality, Beadle said, "A minority of rogue and criminal landlords have tarnished the reputation of the rental sector. We therefore support measures to ensure that every rental property meets acceptable standards, and that swift action is taken where tenant health and safety are at risk. However, this will require..."
