Rental reform needs to work for tenants and landlords
Ahead of the publication of the Renters' Rights Bill, the NRLA has issued a statement which responds to the Bill’s key proposals.
In the statement we call for the reforms to be as balanced as possible to ensure that the needs of both landlords and tenants are addressed appropriately.
Ben Beadle, the Chief Executive of the NRLA, has emphasised the importance of transparency and fairness in the upcoming changes to the private rented sector. He also notes how it is crucial that steps be taken to deal with wait times which prevent the courts from ruling on cases in a timely manner.
Speaking ahead of publication of the Renters’ Rights Bill, Ben Beadle, Chief Executive of the National Residential Landlords Association said:
“Plans to reform the private rented sector have been on the table for over five years now. Above all, renters and landlords need certainty about what the future looks like. Whilst we await the precise details of the Bill, it is vital that it works, and is fair, to both tenants and landlords.
“The end of Section 21, ‘no explanation’ repossessions represents the biggest change to the sector for over 30 years. Once the Bill is passed, it is vital that sufficient time is provided to enable the sector to properly prepare. Over 4.5 million households will need tenancy agreements updating, letting agent staff and landlords will need to undertake training and insurance and mortgage providers will need to adjust policies and rates. None of this will happen overnight and the Government needs to publish guidance.
“In addition, ending Section 21 will leave the courts needing to hear possession claims where landlords have a legitimate reason. The cross-party Housing Select Committee has warned that without reforms to ensure the courts process cases much more swiftly, they risk becoming overwhelmed. This will not serve the interests of tenants or landlords seeking justice.”
In respect of plans to improve the quality of rental housing, Ben Beadle said:
“Too often the actions of a minority of rogue and criminal landlords have brought the sector into disrepute. We therefore support measures to ensure every rental home is of a decent quality, and swift action is taken where standards threaten the health of tenants. However, this all needs to be backed up with robust enforcement by councils.”
-ENDS-
Notes:
• According to the English Housing Survey, 82% of private renters are satisfied with their accommodation compared to 74% of social renters. See here.
• The English Housing Survey shows that there are 4.6 million households in the private rented sector in England. See here.
• In its report on the private rented sector last year, the cross-party Levelling Up, Housing and Communities committee said:
“Landlords are perhaps most concerned about the capacity of the courts to expedite possession claims, particularly in respect of rent arrears and antisocial behaviour, and this is one of our greatest concerns too. 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. As we have concluded before, the best way to improve the housing court system is to establish a specialist housing court, but the Government has rejected this idea, for reasons we find unsatisfactory. Furthermore, in relation to in-tenancy rent increases, the Government proposes that it will remove the power of the First-tier Property Tribunal to increase rents. If this proposal has the desired effect of giving tenants greater confidence to challenge rent increases, it ought to result in a heavier workload for the tribunal. However, this is already a time-consuming and resource-intensive process. Both these proposals present a real risk that the current systems will be overwhelmed, and there will be a logjam with lengthy delays before verdicts are reached.”
The report can be accessed here.
• At report stage of the previous Renters (Reform) Bill in the House of Commons earlier this year, Matthew Pennycook MP, now the Housing Minister, said: “Landlords need robust grounds for possessions in legitimate circumstances, and they need the system to operate quickly when they do.” See here.
• 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.
