Authors:Patricia Tueje
Created:2023-04-12
Last updated:2023-09-18
“Will the Renters’ Reform Bill go far enough to effectively protect tenants?”
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Marc Bloomfield
Description: HLPA
For those of us representing tenants, the long-awaited Renters’ Reform Bill is genuine progress. However, it is four years since the reforms were first announced and there are concerns about whether it will go far enough to effectively protect tenants.
The white paper, A fairer private rented sector (CP 693, Department for Levelling Up, Housing and Communities (DLUHC), June 2022), promises landlords that the abolition of Housing Act (HA) 1988 s21 will be accompanied by new additional grounds for possession. One such ground is where a landlord is selling their property (this would only be available at least six months after the tenancy began), but this provides a loophole for no-fault evictions by the back door. The government tried to address this in its consultation response, A new deal for renting: government response (DLUHC, 16 June 2022), which notes that the government was minded to restrict landlords from marketing and reletting a property for three months after using this ground. The House of Commons Levelling Up, Housing and Communities (LUHC) Committee went further, recommending that this ground only be available after one year, with landlords restricted from marketing and reletting their property for six months. 1Reforming the private rented sector. Fifth report of session 2022–23, HC 624, 9 February 2023. But even that’s unlikely to have an impact. Generation Rent surveyed a small sample of landlords in Scotland, where no-fault evictions were abolished in 2016. It found that almost a third of landlords who evicted their tenant on this ground had not sold the property more than one year later.2Generation Rent analysis of eviction cases in the Scottish tribunal, May 2022.
So, it seems at the very least that landlords should provide cogent evidence that they intend to sell. In its response to the A new deal for renting consultation, Advice For Renters recommended that possession orders made on this ground be suspended until contracts are exchanged.3Written evidence submitted by Advice for Renters [RSS 067], August 2022.
Consideration should also be given to strengthening HA 1988 s12. This empowers the court to award a former tenant compensation where a landlord has obtained possession by misrepresenting or concealing a material fact. An express reference in this section to the risk of contempt proceedings would be a more salutary warning, particularly because the LUHC Committee reported:
One landlord also said that such exploitation was bound to happen. He said it would be very easy to provide evidence of an intention to sell and then, following eviction and once they had relet the property, to say they could not get the asking price. He said it would be impossible for the government to prevent it. 4Reforming the private rented sector. Fifth report of session 2022–23, para 37, page 19.
The recognition that, to be effective, these reforms must be reinforced by restrictions on the frequency and level of rent increases, is welcome. However, disputes regarding rent increases will be dealt with by the First-tier Tribunal (FtT), where legal aid is not available, meaning those least able to afford excessive rents may be less able to enforce their new rights.
The introduction of a digital Property Portal is another lost opportunity. This will require landlords to register their properties. Among other things, the portal will give tenants access to a database containing information about their landlords. Such information will also help local authorities identify non-compliant landlords.
In its consultation response, Advice For Renters highlighted the Property Portal’s potential. It argued that monitoring compliance with, for instance, the new Decent Homes Standard could be shifted from local authorities to the portal. Landlords could be required to evidence compliance with their legal obligations when registering their properties on the portal. Without evidence of compliance, the application to register would be rejected; and without registration, it would be unlawful to let the property. This would be preferable to the current proposals, which predominantly rely on tenant action to tackle housing standards via the new single ombudsman or by applying to the FtT for a rent repayment order for failure to meet the Decent Homes Standard. Advice for Renters pointed out that the system it proposed would be similar to the DVLA’s portal, which requires owners to evidence roadworthiness when taxing their vehicles, which works effectively; for instance, a vehicle cannot be taxed unless it meets the MoT test requirements.
The increasing demand for housing assistance no doubt played a part in the government’s proposals, particularly the recent increase in the number of households to which local authorities owed the main housing duty.5Statutory homelessness annual report 2021–22, England, DLUHC, 22 September 2022.
The expansion of the private sector, with proportionately more non-decent homes than other sectors and rapidly increasing rents, also makes rental reform difficult and politically imprudent to ignore.
The contribution of those who campaigned for this reform should not be underestimated. They recognise that there is still more to be done to maximise the protection afforded by the Renters’ Reform Bill before it is published. Fairer Housing is one such organisation. Email fairerhousing@advice4renters.org.uk, and join it in seeking to ensure that the bill achieves its true potential.
 
4     Reforming the private rented sector. Fifth report of session 2022–23, para 37, page 19. »
5     Statutory homelessness annual report 2021–22, England, DLUHC, 22 September 2022. »