Rental reform must work for tenants and responsible landlords
Today’s King’s Speech confirmed that the newly-elected Labour Government will introduce a Renters’ Rights Bill to parliament.
In response to this news, the NRLA has issued a statement providing its view on the Government’s agenda over the coming months.
With the Government’s agenda for parliamentary business now set, the NRLA will continue to provide analysis and guidance for its members as part of its ongoing campaign work on behalf of members.
If you’d like to check out the King’s Speech in more detail, you can read the document in full here.
Responding to confirmation in the King’s Speech that the Government will bring forward a Renters’ Rights Bill to end Section 21, so-called ‘no fault’ repossessions, Chris Norris, Policy Director for the National Residential Landlords Association, said:
“With an average of 15 households chasing every available home to rent it is vital that rental reform does not make an already serious supply crisis in the private rented sector worse.
“The system that replaces Section 21 needs to be fair, workable and sustainable for both responsible landlords and renters. That means fixing a broken justice system which too often fails those reliant upon it.
“The Housing Minister has rightly noted that landlords need the courts to operate quickly where they have a good reason to repossess a property. This includes cases of tenant anti-social behaviour and serious rent arrears, which currently take almost seven months to process. This is far too long.
“Tenants are no better served by delays, which increase hardship, stress, and uncertainty. We need action from the Government, alongside the Bill, to ensure all are able to access justice in a timely fashion when they need to do so.
“We will work constructively with the Government as it continues to work on the detail of its plans.”
-ENDS-
Notes
- Zoopla noted that: “Rental demand is down 25% over the last year but competition remains high, with 15 households chasing every rental home. This is more than double the pre-pandemic average of just six which was seen between 2017-2020.” It continues: “we do not believe that the imbalance between rental supply and demand will improve materially over the next 12 months”. You can check out Zoopla's findings in more detail here.
- During a debate on the previous Government’s Renters (Reform) Bill to abolish Section 21 the now Housing Minister, Matthew Pennycook MP, noted: “Landlords need robust grounds for possessions in legitimate circumstances, and they need the system to operate quickly when they do.”
- According to the latest Government data in the first quarter of 2024 it took an average mean time of 29.8 weeks between a private landlord making a claim to the courts to repossess a property to it actually happening. In 2019, the Mayor of London published a technical paper on proposed reforms to the private rented sector in which he noted that: “The rights of landlords to regain possession of their properties where they have legitimate reason to do so, should be protected. New and enhanced possession grounds and more efficient and effective possession and court processes are central to achieving this.” The document continued: “Court reform must be central to any forthcoming government reforms to security of tenure. It is vital that proposals do not focus only on digitisation but also recognise the need for further resources to be channelled into the courts system in terms of personnel, enforcement, accessible court buildings and, above all, greater access to Legal Aid for low-income and vulnerable people". You can read this document in full here..
- In the last Parliament, the cross-party Levelling Up, Housing and Communities Select Committee said in its report on reform of the private rented sector that: “The courts system is already struggling to process housing cases quickly enough. The pressures on the courts will be exacerbated by the repeal of section 21, as landlords will seek to regain possession under section 8, especially in the case of rent arrears and antisocial behaviour.” In went in to say of proposals to reform the sector by the last Government that: “It is not clear whether the Government fully appreciates the extent to which an unreformed courts system could undermine its tenancy reforms.”
- According to the Law Society, 43.6% of the population of England and Wales do not have a housing legal aid provider in their local authority area, a figure that has grown by around 6.6% since 2019.
- Further information about the NRLA can be found at www.nrla.org.uk. It posts on X @NRLAssociation.
- The NRLA’s press office can be contacted by emailing [email protected] or by calling 0300 131 6363.
