Government promises rental sector reform

Steve Lumley·13 May 2021·4 min read

Government promises rental sector reform

Reform of the private rental sector in England has been promised by the Government with a new law.

The Queen's Speech highlighted that a Renters Reform Bill, which was first publicised in 2019, will reach the House of Commons later this year.

There will be a White Paper that will lead consultations, but most landlord and industry bodies have been critical of the aims of the new law.

That's because the new bill will see the scrapping of the current Section 21 eviction powers but improve the right to possession for a landlord under Section 8.

Law will bring in 'lifetime deposits'

The new law will also bring in 'lifetime deposits' to make it cheaper and easier for a tenant to move between rental homes.

In response, the National Residential Landlords' Association (NRLA), says the government is committing to consulting with the industry before any legislation is brought in.

The NRLA's chief executive, Ben Beadle, said: "What is proposed in the reforms to the rental sector amount to some of the sector's biggest changes for more than 30 years.

"We are urging the government and others in the sector to ensure the reforms are workable and fair for both landlords and tenants."

Landlords can repossess properties legitimately

He added that any new law must include the grounds for which landlords can repossess properties legitimately and introduce the development of a tenant-landlord conciliation service to sustain tenancies.

The reform plans have also been welcomed by the Association of Residential Letting Agents (Arla).

Arla's campaigns manager, Timothy Douglas, said: "The reform demonstrates that ministers are preparing to engage with the industry so they understand the impact of legislative changes will have on those in the private rented sector."

The managing director of Accommodation for Students, Simon Thompson, said: "The aim of the new law reflects the government's ambition to drive bad landlords from the sector, but they must not penalise good landlords."

UK rents reach a new high

Meanwhile, it has been revealed that rents in the UK have now reached a seven-year high.

According to data from Homelet, the average rent in the UK is now £996 - that's the highest since 2014.

It's also the fifth consecutive month that rents have risen.

When London rents are excluded, the average rent is £853, that's a rise of 0.7% on March's figure and a rise of 6.2% on last year.

The chief executive of Homelet, Andy Halstead, said: "We are seeing sustained demand for property to let against a reduced supply backdrop, and landlords are facing growing costs and concerns over legislative changes.

"The stark reality as we ease from protective measures is that we are approaching summer when rent prices could accelerate at a never-before-seen rate."