Renters’ Rights Bill – The end of Section 21 and "no-fault evictions"

Given Labour’s manifesto commitments, it was not a surprise that the Renters’ Rights Bill received a mention in the King’s Speech. The newly elected Government promised that the Bill will “give greater rights and protections to people renting their homes, including ending no fault evictions and reforming grounds for possession”.

The briefing note that accompanied the King’s Speech provides a little more information on what the Government is proposing but, as usual, the devil will be in the legislative detail. The Government’s bullet pointed aims are set out below;

• “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.”

There is plenty to talk about, but the abolition of Section 21 will be central to the debate between landlords and tenants.

For the most part, landlords will be unhappy to learn that they are likely to be unable to bring tenancies to an end at the expiry of the fixed term agreed with their tenants by contract. However, the level of that discontent is going to depend a lot on what the Government means by “new clear and expanded possession grounds”. What that expansion might entail will be key to understanding how this will change the private rental landscape for both landlords and tenants. We do not expect that the expanded grounds for possession will be a mirror image of those set out in the abandoned Renters’ Reform Bill, but no doubt there will be similarities.

Bearing in mind the already under pressure Court’s, there has been no mention of reform of the Court system for seeking possession or any assessment of how the Court’s may cope with increased demand by claims seeking to establish the existence of a ground for possession. That will require careful review.

We will report on the draft legislation once it is published.