In his King’s Speech held today (17th July), King Charles III announced the government’s intention to introduce a new Renters’ Rights Bill, to give greater rights and protections to people renting their homes.
According to the speech’s background briefing, the bill aims to “decisively level the playing field between landlord and tenant” by providing renters with greater security, rights and protections, while cracking down on any rogue landlords acting unscrupulous.
“The government is determined to address the insecurity and injustice that far too many renters experience by fundamentally reforming the PRS and improving the quality of housing in it,” the document stated.
“We value the contribution made by responsible landlords who provide quality homes to their tenants and believe they must enjoy robust grounds for possession where there is good reason to take their property back.
“The PRS must work for all those who depends upon it for a secure home.”
According to the King’s Speech, the Renters’ Rights Bill will overhaul the PRS by implementing several initiatives, including:
• abolishing section 21 ‘no-fault’ evictions — new clear and expanded possession grounds will be introduced so landlords can reclaim their properties when they need to
• strengthening tenants’ rights and protections — this will include measures to empower tenants to challenge rent increases designed to force them out, and new laws to end the practice of rental bidding wars by landlords and letting agents
• giving tenants the right to request a pet, which landlords must consider and cannot unreasonably refuse
• applying a Decent Homes Standard to the private rented sector to ensure homes are safe, secure and hazard free
• applying ‘Awaab’s Law’ to the PRS, setting clear legal expectations about timeframes within which landlords much make homes safe
• creating a digital PRS database to bring together key information for landlords, tenants, and councils
• introducing a new ombudsman service for the PRS to support quicker, cheaper resolution when there are disputes, and prevent them from escalating to costly court proceedings
• making it illegal for landlords to discriminate against tenants in receipt of benefits or with children when choosing to let their property
• strengthening local councils’ enforcement powers
The majority of the Bill will extend to England and Wales and apply to England.
Industry reacts to the Renters’ Rights Bill announcement in The King’s Speech
Chris Norris, Policy Director for the National Residential Landlords Association, said:
“It is vital that rental reform does not make an already serious supply crisis in the PRS 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.
“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.”
Isobel Thomson, chief executive of Safeagent, added: "Today in The King’s Speech, the new government has set out ambitious plans for reform in the PRS and we fully support its aspirations to raise standards.
“While welcoming the government's commitment to strengthening local councils’ enforcement powers, we highlight the need to ensure enforcement activity is properly resourced if these measures are to achieve the desired outcome.
“We would urge the government not to alienate landlords while seeking to ‘level the playing field between landlords and tenants’ and to recognise the vital role of landlords and agents in underpinning a safe and secure PRS for the majority of tenants.
“We look forward to more detail on the contents of the bill and will be happy to work with government.”
Oli Sherlock, managing director of insurance at Goodlord, stated: "With the government confirming plans to scrap section 21 as part of a Renters' Rights Bill, there is only a short window of time in which to address the one area that could make or break the success of the new legislation: the courts.
“We must unclog the court backlog, the legal system is fraying at the seams and cannot cope even with current level of claims — there's no value in scrapping section 21 if the court system can't handle the influx of demand it will inevitably unlock.
“We need a plan, with timelines, on how the legal system will cope."
Commenting on X, the Renters’ Reform Coalition said: “[It’s] great to see confirmation in The King’s Speech today of new protections for renters, including an end to no-fault evictions and action on bidding wars.
“For renters to have security in their homes, it is crucial that any new possession grounds are not open to abuse.
“So far, the government is saying the right things on this front, but we will reserve judgment until we see the details of the legislation, and we'll be engaging closely with them as the bill is drafted.
“However, as rent continues to outpace wage growth, we're concerned that many renters will face no-fault evictions through unaffordable rent hikes.
“Without action on out-of-control rents the government risks failing to deliver real change.”
