The Prime Minister Rishi Sunak has decided to proceed with the Renters (Reform) Bill, which will end section 21 ‘no-fault’ evictions and assured short-hold tenancies (AST).
That's according to the Financial Times and the Bill, which was unveiled in 2019, had been delayed by some Conservative MPs who fear it would undermine the rights of landlords and discourage investment in the private rented sector (PRS).
Apparently, Mr Sunak told a cabinet meeting that he would deliver the legislation.
The Bill will now have a second reading next week – most likely to be Monday 23 October - before it is carried over to the next Parliament on November 7 – after the King’s Speech.
Bill would abolish assured short-hold tenancies
The housing secretary, Michael Gove, is believed to have won over party critics of the Bill which will abolish Section 21 'no-fault' evictions and end assured short-hold tenancies so that all tenancies become periodic.
Currently, landlords do not have to give a reason for an eviction and, after two months, they can apply for a court order.
The Bill will give landlords a stronger right to repossess their property, for example, if the tenant is in arrears or is creating anti-social behaviour.
The new law would also crack down on landlords who let out an unsafe home.
The PM’s decision has come as a surprise because the leader of the House of Commons, Penny Mordaunt, had not included the Bill's second reading when announcing business for this Parliamentary session.
Delays would risk causing 'more avoidable hardship'
And a group of 30 non-profit organisations and charities— from Citizens Advice to the Child Poverty Action Group — have written to the Prime Minister urging him to progress the Bill with a warning that delays are causing ‘suffering' and ‘hardship’.
Shelter’s chief executive, Polly Neate, said the country's 11 million tenants would welcome the news.
She told the Financial Times: "Every day, 540 people are slapped with a no-fault eviction notice and given just two months to find a new home.
"For them, needless delays and hold-ups to making renting safer and fairer are unacceptable.
"A robust Renters (Reform) Bill has the potential to free people from the constant threat of a no-fault eviction. It would reduce homelessness and hold landlords who let out unsafe homes to account."
Government was running out of time to deliver it
Also, an open letter was shared with the Guardian newspaper and signed by 60 cross-party Parliamentarians who said the legislation was a manifesto commitment and the government was running out of time to deliver it.
The letter was organised by the Renters Reform Coalition, a campaign group that includes former Conservative housing secretary Eric Pickles, who said: "This Bill really is the baseline when it comes to the change we need to see in our housing system, so it is shocking that the government is prevaricating."
The coalition said responsible landlords needed certainty to plan and comply with the new obligations in the legislation.
They also warned that further delays would create instability for landlords at a time when interest rates were rising.
Largest private rental markets in England
The letter was also signed by Sadiq Khan and Andy Burnham, the Labour mayors of London and Greater Manchester, two of the largest private rental markets in England.
Andy Street, the Conservative mayor of the West Midlands, did not sign it.
Other Conservative signatories putting pressure on Mr Sunak include former ministers Caroline Nokes and Stephen Hammond.
A government spokesperson said: "The government is absolutely committed to delivering a fairer private rented sector for tenants and landlords through the Renters (Reform) Bill."
'What is happening with the Renters (Reform) Bill'
The managing director of Accommodation for Students, Simon Thompson, said: "After months of wondering what is happening with the Renters (Reform) Bill, we now know.
"Sadly, it looks like student landlords will have to prepare for the end of short-hold tenancies and move to periodic ones - unless the government sees sense.
"There's still a long way to go before the Bill becomes law so a lot could happen."
He added: "Until then, landlords will have to prepare the best they can under the circumstances, but I do hope student accommodation gets the same treatment as purpose-built student accommodation (PBSA) and not have periodic tenancies imposed."
