The government is set to tweak its Renters (Reform) Bill in England, aiming to address concerns from landlords while still delivering security for tenants.
Critics say the changes will create ‘a landlords charter’ but ministers are responding to criticism from Conservative MPs who say the Bill is too burdensome for landlords.
The revised proposals include a mandatory six-month tenancy period for renters, replacing the current system where they can leave with two months’ notice.
Levelling Up Minister Jacob Young defended the changes, and in a letter to Tory MPs said the changes ensure ‘landlords can rely on a letting period that covers costs’ and prevents short-term lets.
‘Ministers now need to crack on’
The chief executive of the National Residential Landlords Association, Ben Beadle, said: “Ministers now need to crack on to ensure the Bill can proceed with the scrutiny it deserves.
“All the rumour, speculation and off-the-record briefings about the future of the Bill has caused a huge amount of concern and uncertainty for tenants and responsible landlords.
“The Government has a mandate to end section 21 repossessions.
“Our focus has been on ensuring that the replacement system works, and is fair, to both tenants and responsible landlords. The changes being proposed would achieve this balance.”
Delaying the ban on Section 21 ‘no-fault’ evictions
Another key change involves delaying the ban on Section 21 ‘no-fault’ evictions which will be postponed until the justice secretary decides whether courts can deal with a rise in repossession claims.
The Bill, initially introduced last May, aimed to completely abolish no-fault evictions.
Under the revised plan, landlords could still evict tenants in specific situations, such as wanting to sell the property or needing it for themselves or close family.
The government is also considering exemptions to the six-month minimum tenancy, including situations involving tenant death, domestic abuse or serious property hazards.
Reviewing council landlord licensing schemes
Further proposals include reviewing council landlord licensing schemes to avoid duplication with a new property portal for landlord registration.
Also, students could face easier eviction at the end of their academic year, while tenants evicted under new grounds would be entitled to local council homelessness support.
One issue is the abolition of fixed-term contracts in favour of indefinite rolling tenancies.
While the government sees this as offering tenants greater security, critics argue it reduces predictability for landlords.
The proposed changes are ‘cowardly’
Shelter’s chief executive, Polly Neate, said the proposed changes are ‘cowardly’ and said the government would ‘rather betray renters than stand up to a minority of MPs hell-bent on browbeating them into watering down the Renters (Reform) Bill.’
The campaign manager at the Renters’ Reform Coalition, Tom Darling, said delaying the ban on Section 21 would not be in place until after the next general election.
He told the BBC: “The government’s flagship legislation to help renters is fast becoming a Landlord’s Charter.”
One Tory MP with concerns about the Bill, Anthony Mangnall, said he still wants more changes and added there are ‘outstanding issues such as fixed-term contracts’ that need fixing.
‘Give much needed protection to renters’
Matt Downie, the chief executive of Crisis, said: “The Renters (Reform) Bill’s purpose was to give much needed protection to renters, and it’s absolutely vital that it does so.
“Failing to immediately abolish Section 21 or ‘no-fault’ evictions – the leading cause of homelessness in England – won’t do that.”
Labour has said it would abolish Section 21 ‘no-fault’ evictions if it wins the next General Election.
Shadow housing minister Matthew Pennycook said: “After years of delay, private renters have every right to be furious at the watering down of the vital protections the Tories promised them.”
Contact one of our highly experienced mortgage advisors today on 0121 500 6316 to discuss your mortgage needs.
