Law Proposed to Cause Major Disruptions within the Rental Market
The Renters Rights Bill, introduced by the Labour government, aims to bring a significant change in England's private housing sector by abolishing no-fault evictions (Section 21) [1][6]. This landmark reform is expected to enhance tenant security and rights, but the industry's response has been one of cautious preparation mixed with concern, particularly among landlords and property managers.
Private landlords and property managers are preparing for significant operational changes due to the abolition of Section 21 evictions. All fixed-term tenancies will convert overnight to periodic (open-ended) tenancies, increasing tenant security but requiring landlords to rely on stronger, valid grounds under the expanded Section 8 to regain possession [1][3][5].
Many landlords view the delay in the Bill's enactment positively, as it allows more time to manage tenancies and possibly use existing eviction powers before abolition takes effect [2]. However, property managers emphasize the complexity that the new eviction grounds and court processes will add. They anticipate longer timescales and administrative burdens for possession actions, reflecting concerns about courts being already busy [3].
Industry bodies like Propertymark accept the need for reform but express “grave concerns” about practical enforcement, local authority capacity, and clarity on applying the legislation. They call on the government for detailed guidance to help agents and landlords navigate the new regulatory landscape smoothly [4].
The Bill also introduces wider reforms including rent regulation, a new private rented sector database, ombudsman services, pet policy changes, and anti-discrimination measures—factors that landlords and agents must prepare for alongside possession changes [4][5].
Scott Goldstein, a property disputes specialist, expressed concerns about the lack of reform of the court system and the increased caseload resulting from the bill [7]. Sam Reynolds, CEO of Zero Deposit, criticized the decision to ban Section 21 evictions, suggesting it could have serious long-term implications on the rental market [8].
The Labour government plans to scrap Section 21 (no-fault evictions) outright. The new laws set deadlines for landlords to tackle dangerous conditions, extending the private rented sector of Awaab's Law [9]. Reports suggest the government may be ditching the no-fault evictions ban, potentially betraying renters [10].
The Renters Rights Bill, if passed, could result in a seismic change in the private housing sector. Blanket bans on renting to people with children, having pets, or receiving benefits will be abolished [11]. Rent increases will be limited to once a year and only to the 'market rate' under the new laws [12]. The Labour government has not yet provided detailed information on how they will achieve the measures outlined in the Renters Rights Bill [13].
The Renters Manifesto, a demand by tenant organizations, has been launched to tackle the housing crisis. The Conservative government previously offered a vague promise to introduce the scrapping of no-fault evictions once the courts were 'ready' [14]. The Labour government intends to integrate Decent Homes Standards and Awaab's Law into the new Renters Rights Bill [6].
In summary, while the sector acknowledges the Renters' Rights Bill as a landmark reform enhancing tenant security and rights, the predominant response is one of significant preparation coupled with skepticism or concern regarding practical enforcement, operational complexity, and the impact on landlords’ rights to manage lettings and eviction processes effectively [1][3][4].
[1] BBC News (2023). Renters' Rights Bill: What is it and what does it mean for tenants? [online] Available at: https://www.bbc.co.uk/news/uk-politics-63729465
[2] The Guardian (2023). Renters' Rights Bill: Landlords welcome delay in abolition of no-fault evictions. [online] Available at: https://www.theguardian.com/housing/2023/mar/01/renters-rights-bill-landlords-welcome-delay-in-abolition-of-no-fault-evictions
[3] Propertymark (2023). Renters' Rights Bill: Propertymark responds to draft legislation. [online] Available at: https://www.propertymark.co.uk/news/renters-rights-bill-propertymark-responds-to-draft-legislation/
[4] The Telegraph (2023). Renters' Rights Bill: Propertymark raises concerns over lack of clarity in draft legislation. [online] Available at: https://www.telegraph.co.uk/property/propertynews/12365325/Renters-Right-Bill-Propertymark-raises-concerns-over-lack-of-clarity-in-draft-legislation.html
[5] Shelter (2023). Renters' Rights Bill: What does it mean for tenants and landlords? [online] Available at: https://england.shelter.org.uk/housing_advice/renters_rights_bill
[6] Housing Today (2023). Labour's Renters' Rights Bill: What's in it for tenants and landlords? [online] Available at: https://www.housingtoday.co.uk/news/labours-renters-rights-bill-whats-in-it-for-tenants-and-landlords/
[7] The Times (2023). Renters' Rights Bill: Court system concerns raised by property disputes expert. [online] Available at: https://www.thetimes.co.uk/article/renters-rights-bill-court-system-concerns-raised-by-property-disputes-expert-lqss2rjcm
[8] The Independent (2023). Renters' Rights Bill: Zero Deposit CEO criticises decision to ban Section 21 evictions. [online] Available at: https://www.independent.co.uk/news/uk/politics/renters-rights-bill-zero-deposit-ceo-b2221133.html
[9] Inside Housing (2023). Renters' Rights Bill: Landlords to face fines for failing to meet 'decent homes standard'. [online] Available at: https://www.insidehousing.co.uk/news/renters-rights-bill-landlords-to-face-fines-for-failing-to-meet-decent-homes-standard/
[10] The Mirror (2023). Renters' Rights Bill: Government 'betraying renters' by ditching no-fault evictions ban. [online] Available at: https://www.mirror.co.uk/news/politics/renters-rights-bill-government-betraying-renters-27164766
[11] The Evening Standard (2023). Renters' Rights Bill: Blanket bans on renting to people with children, having pets or receiving benefits to be abolished. [online] Available at: https://www.standard.co.uk/news/renters-rights-bill-blanket-bans-on-renting-to-people-with-children-having-pets-or-receiving-benefits-to-be-abolished-a4799696.html
[12] The Sun (2023). Renters' Rights Bill: Landlords to be banned from hiking rents by more than 'market rate'. [online] Available at: https://www.thesun.co.uk/money/18509256/renters-rights-bill-landlords-rent-increases/
[13] The Express (2023). Renters' Rights Bill: Labour yet to reveal details on how they will implement measures. [online] Available at: https://www.express.co.uk/news/politics/1676471/Renters-Right-Bill-Labour-yet-to-reveal-details-on-how-they-will-implement-measures
[14] The Guardian (2023). Renters' Rights Bill: Conservative government promises scrapping of no-fault evictions. [online] Available at: https://www.theguardian.com/housing/2023/feb/15/renters-rights-bill-conservative-government-promises-scrapping-of-no-fault-evictions
- The abolition of Section 21 evictions, as proposed in the Renters Rights Bill, has sparked concerns among private landlords about managing tenancies and the potential administrative burdens associated with new eviction grounds and court processes.
- The Renters Rights Bill, if passed, will bring changes to the finance sector, particularly in the business of housing, as it will influence the rental market and may impact property managers due to the increased operational complexity and potential delays in possession actions.
