The Government has announced plans to introduce a Renters’ Reform Bill, which it says will introduce a package of reforms to deliver a fairer and more effective rental market in the private sector.

However, landlords have warned of a possible mass sell-off of homes that could spark a rent crisis, as demand outstrips supply, forcing rents up at a much faster rate and locking many low-income people out of the market.

Alternatively many tenants and prospective tenants will only be able to afford the worst quality and sub-standard homes let by rogue landlords. The main elements of the Bill will be:

• Abolishing the use of ‘no fault’ evictions by removing Section 21 of the Housing Act 1988 and reforming the grounds for possession;
• Giving landlords more rights to gain possession of their property through the courts where there is a legitimate need for them to do so by reforming current legislation. Court processes will also be speeded up allowing landlords to get their property back quicker and easier;
• Introducing a new lifetime deposit so that tenants do not need to save for a new deposit every time they move house; and
• Continuing to develop and implement measures to wider access and expand the scope of the database of rogue landlords and property agents giving greater powers to drive improvements in standards, and empowering tenants to make an informed choice about who they rent from.

Section 21 evictions are associated with the rapid increase in homelessness seen in the past decade. All of the main political parties were committed to it being scrapped during the recent general election campaign.

The Residential Landlords Association has repeatedly warned ministers they must make sure landlords have confidence in the repossession system after Section 21 is scrapped or there could be a mass sell-off of properties by landlords.

The RLA says that any new system brought in to replace Section 21 must ensure landlords can swiftly and effectively repossess properties in legitimate circumstances, such as for rent arrears or anti-social behaviour.

Clear and comprehensive grounds

The RLA wants a new framework to provide clear and comprehensive grounds on which landlords can repossesses, with guarantees about the timeframes involved and measures to prevent abuses by problem tenants.

There are also calls for a dedicated housing court to ensure there is easy and quick access to justice where there are conflicts between landlords and tenants.

David Smith, RLA policy director said: “We accept the need to protect tenants from abuse, but it is crucial that plans to reform the way repossessions can take place are got right if the Government is to avoid a rental housing crisis.

“Unless the new system is fair to good landlords as well as tenants, those same landlords who we need to support simply will not have the confidence to provide the rented homes that are needed to meet the demand.”

Almost 6,500 landlords and agents were surveyed by the RLA last year in the wake of the announcement about Section 21 being scrapped, with half saying they would sell some or all of their rental homes.

Another key finding was that Section 21 is used to repossess property where the tenant is at fault, with many landlords using it in cases of rent arrears and antisocial behaviour, as they lack confidence in the Section 8 process.

The research found that 83 per cent of landlords who had used Section 21 had done so due to rent arrears, while over half had relied on it when their tenants were behaving antisocially. The Government has announced plans to introduce a Renters’ Reform Bill, which it says will introduce a package of reforms to deliver a fairer and more effective rental market in the private sector.

However, landlords have warned of a possible mass sell-off of homes that could spark a rent crisis, as demand outstrips supply, forcing rents up at a much faster rate and locking many low-income people out of the market.

Alternatively many tenants and prospective tenants will only be able to afford the worst quality and sub-standard homes let by rogue landlords. The main elements of the Bill will be:

• Abolishing the use of ‘no fault’ evictions by removing Section 21 of the Housing Act 1988 and reforming the grounds for possession;
• Giving landlords more rights to gain possession of their property through the courts where there is a legitimate need for them to do so by reforming current legislation. Court processes will also be speeded up allowing landlords to get their property back quicker and easier;
• Introducing a new lifetime deposit so that tenants do not need to save for a new deposit every time they move house; and
• Continuing to develop and implement measures to wider access and expand the scope of the database of rogue landlords and property agents giving greater powers to drive improvements in standards, and empowering tenants to make an informed choice about who they rent from.

Section 21 evictions are associated with the rapid increase in homelessness seen in the past decade. All of the main political parties were committed to it being scrapped during the recent general election campaign.

The Residential Landlords Association has repeatedly warned ministers they must make sure landlords have confidence in the repossession system after Section 21 is scrapped or there could be a mass sell-off of properties by landlords.

The RLA says that any new system brought in to replace Section 21 must ensure landlords can swiftly and effectively repossess properties in legitimate circumstances, such as for rent arrears or anti-social behaviour.

Clear and comprehensive grounds

The RLA wants a new framework to provide clear and comprehensive grounds on which landlords can repossesses, with guarantees about the timeframes involved and measures to prevent abuses by problem tenants.

There are also calls for a dedicated housing court to ensure there is easy and quick access to justice where there are conflicts between landlords and tenants.

David Smith, RLA policy director said: “We accept the need to protect tenants from abuse, but it is crucial that plans to reform the way repossessions can take place are got right if the Government is to avoid a rental housing crisis.

“Unless the new system is fair to good landlords as well as tenants, those same landlords who we need to support simply will not have the confidence to provide the rented homes that are needed to meet the demand.”

Almost 6,500 landlords and agents were surveyed by the RLA last year in the wake of the announcement about Section 21 being scrapped, with half saying they would sell some or all of their rental homes.

Another key finding was that Section 21 is used to repossess property where the tenant is at fault, with many landlords using it in cases of rent arrears and antisocial behaviour, as they lack confidence in the Section 8 process.

The research found that 83 per cent of landlords who had used Section 21 had done so due to rent arrears, while over half had relied on it when their tenants were behaving antisocially.

By Patrick Mooney, Editor