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The Queen’s Speech has confirmed that a radical re-shaping of the rental sector in England is being pushed ahead by the government.
Although the relatively brief speech delivered by Prince Charles - deputising for Her Majesty - made superficial reference to housing and planning, details released just after the speech put flesh on the bones.
A Bill will abolish what the government has called 'no fault' evictions - section 21 evictions - “giving renters better rights when they are told to leave despite complying with the terms of their tenancy.”
The details also say that there will be additional reform of landlords' grounds for possession to give them greater powers to tackle repeated rent arrears or anti-social behaviour among tenants.
In addition, a new ombudsman for private rented landlords will ensure disputes can be easily resolved without going to court.
“These reforms will help more people own their own homes” according to the government.
The Leasehold Reform Act 2022 will come into force on 30 June, and this will - amongst other things - stop landlords requiring ground rent for new long residential leases.
It will also mean banning new leasehold houses to ensure that all new houses built are freehold.
The government has given details of the Renters Reform Bill, which will:
- remove Section 21 of the Housing Act 1988 providing in the government’s words “security for tenants in the private rented sector and empowering them to challenge poor practice and unfair rent increases without fear of retaliatory eviction”
- reform possession grounds for landlords, “introducing new and stronger grounds for repeated incidences of rent arrears and reducing notice periods for anti-social behaviour, ensuring that they can regain their property efficiently when needed”;
- apply the legally binding Decent Homes Standard in the Private Rented Sector for the first time ever, giving tenants safer, better quality and better value homes;
- introduce a new Ombudsman for private landlords “so that disputes can easily be resolved without the need to go to court, which is often costly and lengthy, and ensure that when residents make a complaint, landlords take action to put things right”;
- introduce a new property portal to help landlords understand their obligations, give tenants performance information to hold their landlord to account as well as aiding local authorities.
And the government says: “We will shortly publish a White Paper which will set out more detail on our proposals for landmark reform in the private rented sector."
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No real surprises here- the details will be what is key and when/how the removal of S21 is implemented/enforced.
". . ensuring that they can regain their property efficiently when needed." Exactly how will abolishing S21 help achieve this? More vote-chasing by Boris when those he is helping are unlikely to ver vote for him.
Love the way the national landlords register has been rebranded a "landlord property portal". If there is no proper accelerated Court process that works to enable landlords to take back possession quickly for a variety of reasons where tenants are not conforming, the government faces 2 immediate real problems. 1) a tsunami of S21s when we know what the cut off is for the new leglislation as landlords play safe, go back into the market for an "Alpha" tenant paying a market rent. 2) for those landlords that remain, if at least in the medium term, how to encourage them to let to the bottom half of the tenant barrel. The Tenant Fees Acts already marginalised tenants with lower incomes, pets, small children etc, the RRB will make this even more acute, as landlords look for as close to zero risk as possible.
As ever the private landlord is the devil... ..in practical terms the number of rental properties will shrink significantly with the repeat election bribe of selling off social housing stock at the expense of those who need it plus the inability of landlords to minimise risk- (with landlords unable to tackle rent arrears or sell properties if they cannot afford to keep them which may well be the case with rising interest rates) making property rentals an increasingly unappealing business proposition - resulting in fewer homes for people that need them.
Kristjan no surprises ! Are you barking mad. Or another agitator ? It's a government that's supposedly reducing red tape and into private enterprise. It's basically sequestration of private assets.
Wonderful news but way overdue and I wonder how long the Govt can further drag this out. For too long has there been an unequal power relation between tenants and landlords, families not able to set down roots, people scared of raising complaints about standard of housing for fear of being turfed out without notice. Here's to a fairer housing system.
That you, Polly?
Come down to Moe's Bar Fedup and drown your sorrows
Daily Mail story today: Plans emerge that may stop Scottish landlords repossessing properties if tenants fail to pay their rent - could England follow?
Council are setting up lol companies the board is made up of councillors. The council is tax payers money to out bit professional developers thus increasing costs to developers and the house mkt.
These new companies set up by councils and run by councils and councillors are generally inexperienced and the recent operation in Eastbourne is years overdue.
This is not what councils or councillors are employed to do.
“These reforms will help more people own their own homes”. How? The PRS pool of available houses shrinks due to reforms which LL don't like = rents rising. How is that any assistance to tenants?
It's not meant to be an assistance to tenants, it never was. This is all part of a continuing move to hand over the PRS to banks and large corporations. The Government have mor eor less openly stated it in parliament.
Think about it Hazel. It's your property they are after.
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