The shadow housing secretary says the last government wasn’t able to make the legislation work
Shadow housing secretary Kemi Badenoch has described Labour’s Renters Rights Bill, which would make it harder to evict private tenants, as a “powerful disincentive” for would-be landlords.
She said despite the Conservative Party’s 2019 manifesto commitment to end no-fault evictions, it tried to make its own version of the bill work while in office, but realised it couldn’t.
The new Labour government has now introduced its own similar package of rental reforms, called the Renters’ Rights Bill. Both bills contained a proposal to abolish section 21 ‘no fault’ evictions - which allow landlords to evict residents with two months notice after a fixed-term tenancy ends.
Speaking at the second reading of the bill yesterday, the Conservative party leadership contender said that “the fact of the matter is that this legislation is not going to help. We would love it if it did. We tried to make it work and we couldn’t, it was having negative effects”.
>> See also: Rayner vows to get Renters’ Rights Bill into law ‘as soon as possible’
>> See also: New Renters’ Rights Bill would ban ‘no fault’ evictions and bring Awaab’s Law to private rental sector
She added that “it is painfully clear to anyone who understands markets that this bill will act as a powerful disincentive for anyone to rent out their property”.
The bill also includes a package of measures designed to give more rights to renters, including the ability to challenge rent increases at a tribunal (see box below).
Other Conservative MPs pointed to the potential “unintended consequences” of the legislation, citing Scotland as an example of where they believe no fault eviction rules have made renters’ rights worse.
In response, Angela Rayner, the deputy prime minister and housing secretary, said “This is about fairness for landlords and tenants, and I think it [the bill] strikes the right balance”.
During her opening statement, Rayner recognised “the important role of landlords, most of whom provide good quality homes to their tenants”. However, she said that the private rental sector is “in serious need of reform”.
She said that the Conservative government pledged to end the “scandalous practice” of no fault evictions in its 2019 manifesto, but that renters are still waiting, hence why this government is acting at speed.
At-a-glance: Labour’s Renters Rights Bill key measures
- abolish ‘no fault’ section 21 evictions and move to a simpler tenancy structure where all assured tenancies are periodic
- tenants allowed to challenge unreasonable rent increases through a tribunal
- landlords limited to raising rents only once a year and only to the market rate, a measure intened to end unfair rent hikes.
- landlords would be unable to advertise a rental property without specifying a set rent amount and would be unable to accept any offers above the advertised rent price. The move is intended to end “bidding wars” in the private rented sector
- government has said tenants will also benefit from faster dispute resolution through a new Ombudsman service, reducing the need to go through the court system.
- the Decent Homes Standard and Awaab’s Law, which requires landlords to fix hazards such as damp and mould in fixed timescales, will also be extended to the private rental sector
- local councils equipped with greater powers to crack down on unscrupulous landlords, with maximum fines for serious offenders increasing to £40,000
- a new database for landlords to share important information on their property standards, showing their compliance with the law and helping councils tackle any criminal landlords.
- tenants will also have the right to request permision for a pet, and landlords cannot unreasonably refuse. They will also be able to challenge any unfair refusals.
Jeremy Corbyn said the bill should go further by introducing rent controls.
Rayner acknowledged his perspective, but ruled out the idea of rent controls, arguing that they “restrict housing supply, which doesn’t help anyone.”
However, she emphasised that the bill incorporates practical measures to assist renters in challenging unreasonable rent increases and bidding wars.
In the debate, Rayner said “I hope the entire house will agree that everyone should live in a decent, safe and affordable home. Everyone should, but not everyone can.”
Rayner said that at the heart of her plans for housing is decency and ensuring that all homes are warm and safe.
After the second reading of the bill has been concluded, MPs will vote on whether to approve it for further consideration. If it passes, it will then go to committee stage.
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