The Renters Reform Bill is set for debate in Parliament on Monday 23 October. This bill, if passed, will mark a new era in the private rented sector, particularly by revoking landlords’ ability to end tenancies through the infamous Section 21 notices.
Gearing Up for Change: The Renters Reform Bill Explained
Introduced under Theresa May’s government back in April 2019, the Renters Reform Bill aims to overhaul the renting landscape in England. Its primary goal? To enhance protections for renters and rebalance relations between tenants and landlords. Despite its introduction over four years ago, progress stalled, leaving industry players and renters in a state of uncertainty, particularly under the brief tenure of the Truss administration.
However, under the current government, there’s renewed vigour to push these reforms forward. The Bill encompasses key proposals from the Fairer Renting white paper, a document that garnered widespread approval from advocates for change in the renting sector.
Stalled Progress and Renewed Commitment
The journey of the Renters Reform Bill hasn’t been without its roadblocks. It’s been an unusually slow trek from its initial introduction to the upcoming second reading. The typical legislative process includes a first reading, committee stage, second reading, third reading, and the final stage of receiving Royal Assent. The extended delay has been a point of contention and concern, especially considering the significant implications the bill holds for the private rental sector.
Opposition and Support: The Bill’s Rocky Journey
Michael Gove, the Housing Secretary, has championed the Bill, emphasizing the necessity of a “thriving private rented sector” for an effective housing market. Despite facing substantial opposition, including from within his party ranks, Gove has reportedly emerged victorious in internal disputes, paving the way for the bill’s second reading in the House of Commons.
The upcoming session will also feature a ‘carry-over motion’, ensuring the bill’s survival into the following parliamentary session, commencing with the King’s Speech on November 7.
What This Means for Landlords and Tenants
The cornerstone of the Renters Reform Bill is the termination of Section 21 evictions, a mechanism that currently allows landlords to evict tenants without a stated cause. This move is seen as a shift in granting renters more stable occupancy and rights.
The National Residential Landlords Association (NRLA) foresees a lengthy implementation period, with the new laws possibly coming into full effect only around the next general election in late 2024. Ben Beadle, chief executive of the NRLA, stresses the need for future policies to instill confidence among landlords. He advocates for quicker court processes for legitimate possession claims post the Section 21 repeal and calls for tax reforms to alleviate challenges in providing rental homes.