Bill to ban Section 21 evictions published – industry reaction

The bill to ban Section 21 ‘no fault’ evictions was published in Parliament on Wednesday signalling the Government’s intention to move quickly on Private Rented Sector regulation.

The previous Conservative government failed to deliver on its pledge to scrap Section 21, running out of time when a snap election was called, but the new Labour administration is set to see it through.

Court delays

Propertymark is making it clear it isn’t happy with the move, and has made this obvious in comments released today, especially as there is no commitment to deal with backlogs in the courts.

Timothy Douglas, Head of Policy and Campaigns at Propertymark, says: “Whilst Propertymark acknowledges the drive towards improved standards, the UK Government must fully understand and recognise the impact that these changes will have with agents up and down the country left wondering how this legislation will help meet the much-needed demand for homes for people to rent.

There must be a commitment to ensure the court system and grounds for possession are robust and fit for purpose.”

“With such significant changes to the current tenancy regime there must be a commitment to ensure the court system and grounds for possession are robust and fit for purpose,” he says.

“Furthermore, without an enhanced, effective and well-resourced enforcement regime from local authorities it is unlikely that any benefits from the reforms will be realised.”

No-fault evictions banned

In a statement released this morning the Government said: “No fault evictions will be banned, and renters will receive greater protections and security from eviction thanks to historic legislation to level the playing field between tenants and landlords.

“The Renters’ Rights Bill, introduced to Parliament today, will ban Section 21 ‘no-fault’ evictions for new and existing tenancies, extend Awaab’s Law into the private rented sector and end blanket bans for those on benefits or with children.”

And a new Decent Homes Standard will be applied to the PRS for the first time.

Renters let down

Deputy Prime Minister and Housing Secretary Angela Rayner (main picture) says: “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.

There can be no more dither and delay”.

“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.”

She says “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.

Industry reaction

Guy Gittins, CEO of Foxtons, says: “Tenant welfare is a serious issue and one that quite rightly needs addressing to allow those reliant on the rental sector to not only have a roof over their head, but a roof that is fit for purpose and provides the basic securities many of us take for granted.

“We’ve already seen how legislative changes designed to complicate investment and reduce buy-to-let profitability can deter landlords from the sector, inadvertently leading to a reduced level of quality rental stock and higher rents for tenants,” he says.

“It remains to be seen as to whether the court system is adequately prepared to deal with the ban on Section 21 evictions, or how the government intends to police changes to asking rent requirements.”

Today’s proposed bill from Starmer and Co stinks of sixth form politics.”

Marc von Grundherr, Director of Benham and Reeves, says: “Today’s proposed bill from Starmer and Co stinks of sixth form politics and is intended to do little more than to win votes from renters, as it certainly won’t help improve the current rental market crisis.

“Time and time again, the government has looked to penalise landlords to ‘improve’ the rental market landscape and, time and time again, we’ve seen quality landlords exit the sector, stock levels dwindle and tenants pay the price of an out of kilter supply-demand balance,” he says.

“The sceptical amongst us might suggest that intensifying the landlord exodus is all part of the plan, as in doing so they are able to boost housing market stock levels to satisfy homebuyer demand and mask their own failings in building enough homes.”

Rent controls

Allison Thompson, Leaders Romans Group says, “Labour’s inclusion of rent controls, restricting in-tenancy rent increases to once per year and aligned with market rates, introduces much stronger tenant protections compared to the Renters Reform Bill.

“The ban on bidding wars, while intended to curb unfair practices, in reality misinterprets the issue, as these are driven by the fundamental dynamics of supply and demand rather than being a deliberate practice by letting agents. Any legislation aimed at curbing needs to address the underlying market imbalance.

“The introduction of Awaab’s Law under the Renters’ Rights Bill sets crucial expectations for landlords to address health hazards such as damp and mould within specific timeframes. While ensuring tenant safety is paramount, the requirement to resolve such issues within 28 days, with initial inspections to be carried out within 14 days, could prove difficult for landlords, particularly those managing older properties that may be more prone to damp due to outdated infrastructure or design limitations.

There needs to be access to financial assistance or grants for upgrading older properties.”

“We believe that, in order to meet these new requirements without undue burden on landlords, there needs to be access to financial assistance or grants for upgrading older properties, along with clearer guidance on how to extend the timelines in cases where more complex work is required. This will help ensure that the private rented sector can meet these important health and safety standards, while still allowing landlords the flexibility to manage repairs properly.

“We also recognise the importance of the proposed landlord database, which will help ensure compliance and transparency in the sector. However, it is vital that the system is implemented in a way that supports good landlords, rather than adding unnecessary administrative complexity.

 Oli Sherlock, MD of Insurance at Goodlord, says: “The stuttering, broken-record loop the industry has been stuck in over this legislation may finally be coming to an end from today.

“It won’t necessarily all be music to the sector’s ears, but we will at least have some clarity. The biggest change between the previous Renters (Reform) Bill and the new Renters Rights’ Bill will be around Section 21.

“The Conservative Government offered the industry something of a fudge around the scrapping of no fault evictions, with vague promises to introduce it once the courts were ‘ready’. Whilst we agreed with the sentiment of this, there was no timeline or action plan announced alongside,” he says.

It looks like the Labour Government will scrap Section 21 outright and the courts will need to find a way to cope.”

“In contrast, it looks like the Labour Government will scrap Section 21 outright and the courts will need to find a way to cope.”

Lauren Hughes, Head of Customer Success at Vouch, says: “At first glance, this Bill will look very similar to the previous legislation, but once you scratch the surface critical differences will emerge.

“Labour has already indicated that they will go further around rent increases – including ending bidding wars and challenging unfair rent increases. However, in a way that has become familiar over the years, we have thus far been given little detail about how they will achieve this.

“Likewise, the Government has decided to take the standard of private housing further by integrating the Decent Homes Standards and Awaab’s Law.” she says.

“And, most crucially, it appears that S21 will be scrapped as soon as the Bill passes into law. It’s a seismic piece of legislation. The industry will cope with the changes – it always does – but that doesn’t mean it will be a smooth or painless transition.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “As the ending of Section 21 ‘no fault’ evictions in particular has been in the pipeline for so long, the impact on the market will be relatively limited.

“Many of the landlords who were worried about the change – and mainly ‘accidental’ landlords – have either sold long ago or are in the process of selling. Others who have stayed the course have been waiting to hear the finer points of the proposed legislation before making a decision one way or the other,” he says.

“As far as we are concerned, all new housing measures need to pass the following test – ‘will the change help to address the present chronic shortage of affordable housing for sale and to let?’ We are not convinced the Renters’ Rights Bill does so in its present form.”