Renters Reform Bill voted through but S21 evictions ban WILL be delayed

Section 21 won’t be abolished until the court system is deemed ready after the Renters (Reform) Bill was voted through yesterday evening to its next stage – despite Labour’s objections to many of its proposals.

MPs backed the Government’s amendment requiring the Lord Chancellor to assess the county court possession order process in England and its enforcement before the end of no-fault evictions – contrary to previous assurances that this would happen before the next election.

However, during the third reading debate, Housing Minister Jacob Young (main image) said it was exploring whether serious eviction cases such as anti-social behaviour could be prioritised in court listings.

Another key amendment – only allowing tenants to give notice after six months – was also approved, with exemptions such as death of a tenant or victims of domestic violence being considered.

MPs agreed that the Housing Act 2004 would be altered so that both ‘superior’ landlords as well as rent-to-rent companies (the ‘immediate’ landlord) are both covered when served with improvement notices and could be liable for Rent Repayment Orders.

Licensing

During the debate, the minister clarified the distinct and separate role of selective licensing and new property portal and promised a review.

He said: “The portal will be a resource for local authorities and to help landlords understand their legal obligations, while selective licensing gives councils powers to licence properties to address issues such as poor housing and crime.

“There will be overlap with data. We don’t want to see selective licensing abolished but want to ensure the processes are streamlined – that’s why we’re committing to a review of selective licensing and HMOs.”

Young also committed to aligning the ombudsman with the property portal so that landlords would only need to input their details once.

Damp squib

The minister said the Government wouldn’t introduce Awaab’s law to the PRS as it was a different set-up to the social sector, and councils already had the power to fine landlords while the Bill introduced a decent homes standard and ombudsman.

The government plans to introduce this standard for the PRS in secondary legislation, he revealed.

Young added: “Removing fixed term tenancies is a significant change and government will commit to publishing a report on the system within 18 months to ensure the system works…along with a report on the stock of residential tenancies in the five years after Royal Assent to provide regular analysis of location and size of properties.”

Not for purpose

However, Labour’s Matthew Pennycook argued that the Bill wasn’t yet fit for purpose.

“The Government can’t articulate what ‘ready’ means regarding the courts – it could be years before section 21 is abolished. The Bill should have been advanced, but the government has made concessions to placate a minority of MPs.”

 His colleague Clive Betts, who heads up the housing select committee, said a clear time commitment was needed over abolishing section 21.

“I have no conviction that after years of contemplation the courts will be any quicker in two years’ time than they are now.

“Local authorities are very short of staff – once section 21 goes, tenants fearing eviction regarding a complaint will feel embolden to make a complaint, and local authorities will get more requests for help.”

Reactions

Oli Sherlock, Managing Director of Insurance at Goodlord

“The Renters (Reform) Bill involves much more than the abolition of Section 21 eviction notices. However, it was the main topic of conversation again in Parliament today,” he says.

“Although it is imperative for the county courts to have the resources they need to cope with the upcoming changes, the lack of detail around when and how the money to pay for this will be provided is disappointing.”

Lauren Hughes, Director of Customer Success at Vouch

“The Bill seems to be creaking towards the finish line, but today’s debate showcased just how much uncertainty remains,” she says.

“Section 21 was much discussed, with a range of Tory MPs continuing to put pressure on Gove to water down the manifesto proposal to scrap no-fault evictions.

“And it appears that this strategy has been effective, with the Housing Minister admitting that the Section 21 ban is unlikely to be in place before a General Election.”

Ian Fletcher, Director of Policy (Real Estate)

“At a time when we need to increase investment in the supply of good quality private rented accommodation, one of the greatest obstacles to achieving that has been investor hesitancy caused by an uncertain regulatory environment, with many landlords and investors living with such uncertainty on renters’ reform since the Government made it a manifesto commitment in 2019,” he says.

“This uncertainly has undoubtedly had a cooling effect on the private rented sector and delayed many investment decisions.

“It is therefore imperative that not only does this Bill get passed overall to prevent landlords living with uncertainty for a further prolonged period, but the Government’s amendments in relation to an initial six-month period for tenants, the requirement for an assessment on the county court possession system before abolishing section 21, and changes to protect student landlords in particular are retained as the Bill progresses through its next stages in the House of Lords.”

Isobel Thomson, chief executive of safeagent

“We support the aims of the Bill but we need the detail surrounding the measures. Too many landlords will be reading about the changes the Bill will bring in and considering their position going forward, wondering should they remain in the sector.

“The detail would provide reassurance to them and also tenants.

“As ever, accredited agents will seek to reassure and inform but they need a timeline from Government for the changes to be implemented.”