The proposed law includes a ban of Section 21 ‘no-fault’ evictions for new and existing tenancies, an end to blanket bans for tenants on benefits or with children and an extension of Awaab’s Law to the private rented sector.
Awaab’s Law was introduced to the social housing sector last year after two-year-old Awaab Ishak died due to damp and mould in his home. It requires landlords to address and fix health hazards in rented homes within 14 days of complaints being made.
End to rental bidding wars and ‘no-fault’ evictions
The Government said the Renters’ Rights Bill would provide greater protections and security for renters, while the banning of Section 21 would “reassure tenants they can challenge bad practice without the fear of retaliatory eviction, as landlords will need to provide a valid cause to end a tenancy early”.
The Government said around 21% of privately rented homes are considered non-decent and more than 500,000 have “the most serious of hazards”.
It noted that “good landlords who provide these standards will benefit from clear regulation”, adding this would “eliminate unfair competition from those who, for far too long, have got away with renting out substandard properties to tenants”.
Landlords who do not address serious hazards can be fined up to £7,000 by local councils and could face prosecution.
The bill will also ban rental bidding wars and mandate landlords and letting agents to publish an asking rent for a property. Landlords and letting agents will also be banned from asking for, encouraging or accepting bids above the asking price.
Additionally, the Renters’ Rights Bill will seek to bank in-tenancy rent increases that are written into contracts, which the Government said were often used to push out existing tenants. Landlords will only be allowed to raise rent once per year and at the market rate.
Further, a new Private Rented Sector Database will be created to help landlords understand their responsibilities and give tenants information to make choices for new tenancies. It should also allow councils to target enforcement where it is most needed, the Government said.
The bill comes after Housing Minister Matthew Pennycook met with landlord and tenant groups this week, promising to engage with them as the bill progresses and ensure they are ready for the changes.
The Government also said it would ensure homes in the private rented sector would meet minimum energy-efficiency standards by 2030, with more details to come after further consultation.
‘Unscrupulous’ landlords tarnishing the sector’s reputation
Deputy Prime Minister 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 rebalance the relationship between tenant and landlord. This bill will do just that and tenants can be reassured this Government will protect them.”
This article was first published on Your Mortgage‘s sister site, Mortgage Solutions. Read: Section 21 ban and once-a-year rent increases proposed in Renters’ Rights Bill
