Labour’s Tenancy Reform Bill will bring about significant changes to the rental housing sector in England and Wales, including in relation to no-fault termination and the keeping of pets.
A law will be introduced “to give people who rent their homes more rights and protections”, including “ending terminations without giving reasons and reforming the grounds for evictions”, King Charles said.
The bill was drafted under Rishi Sunak’s tenure but was plagued by delays and significant changes, and was scrapped when Parliament dissolved earlier this year.
“We will take action where the previous government failed,” Labour said.
The law affects England’s 11 million private renters and will be partially extended to Wales.
Repeal of Section 21 “No-fault evictions”
The possibility of termination without notice had previously been removed from the bill, but the Labour Party has now reinstated it in the bill.
According to the Ministry of Justice, more than a third of households were evicted without reason in 2023.
It follows a Labour Party election promise to abolish the clause.
“It is welcome that the government’s plans include an end to evictions without notice. After five years of promises from the previous government without any improvement in the end, renters are understandably demoralised and wary of new commitments,” said Dan Wilson Craw, deputy director of Generation Rent.
Give tenants the right to challenge rent increases
Tenants can fight against rent increases by landlords that aim to “push them out through the back door.”
Since the pandemic, rents in London have risen by 17 percent.
The bill proposes new laws to put an end to the practice of bidding wars between landlords and letting agencies over rents.
However, Craw warned: “Empowering tenants to challenge rent increases will not work if rents still end up rising faster than our incomes.”
Give tenants the right to request a pet
Landlords must respect tenants’ wishes regarding pet ownership and may not unreasonably refuse pet ownership, but may require insurance to cover potential damage caused by pets if necessary.
Applying “Awaab’s Law” to the sector
Awaab’s law was introduced in the Social Housing Regulations Act 2023.
Landlords must adhere to strict deadlines when it comes to eliminating dangerous hazards such as damp and mold in their properties.
It is named after two-year-old Awaab Ishak, who died due to mold in his social housing.
According to YouGov, more than half of all tenants in England had problems with damp and mould.
Housing experts in need are confident the new rule will help social housing residents, calling the bill a “beacon of hope.”
But Stephen Weston, a senior lawyer at SJS Legal, a law firm that represents people whose health and wellbeing are severely compromised by often appalling housing conditions, warned that much work remains to be done.
He said: “Social housing in the UK needs urgent overhaul. Staff and resources should be available to fix the problems much more quickly.”
“Many tenants are going around in circles while their homes are falling apart around them.
“We’ve had some clients who have waited up to seven years for work to be completed to an acceptable standard. But we’re not giving up on them and I hope the new Labour government won’t either.”
Introduction of a digital database for the private rental sector to store information for landlords, tenants and municipalities
This was an earlier feature of the bill. It promises to create a digital portal with information for landlords, tenants and municipalities.
Creation of a new Omnudsman service for the sector
The Ombudsman will deal with complaints about housing and will offer landlords and tenants a “fair, impartial and binding solution”.
During the cost of living crisis, there was an increase in property disputes, particularly with regard to rent increases and evictions.
This step should help reduce the need for legal proceedings.
