Renters (Reform) Bill on the 'brink of collapse'

Steve Lumley·15 March 2024·5 min read
Renters (Reform) Bill on the 'brink of collapse'

The controversial Renters (Reform) Bill which will abolish Section 21 'no-fault' evictions in a shake-up of the private rented sector (PRS) is on the 'brink of collapse'.

That's according to The Sun newspaper which quotes Whitehall insiders as saying that a group of angry Tory MPs are holding the Bill 'to ransom'.

The Housing Secretary Michael Gove recently pledged to make the Bill law before the next election, but that promise looks unlikely now.

Officials say the backbench Tories, some of whom are landlords, are refusing to budge on a Bill compromise.

'Bill looks like it may now collapse'

A Whitehall source told the newspaper: "The Renters (Reform) Bill looks like it may now collapse and the Tories risk breaking their manifesto commitment to end ‘no-fault’ evictions.

"Officials are at a total loss given both pro-landlord groups like the National Residential Landlords Association (NRLA) and pro-renters groups like the Renters Reform Coalition want this bill passed ASAP.

"It seems a small group of landlord MPs, led by Anthony Mangnall, are holding the bill to ransom."

While he isn't a landlord, Mr Mangnall, says he supports abolishing Section 21 'no-fault' evictions.

Replacement of fixed-term tenancies with periodic tenancies

However, the MP says that many of his fellow Conservative MPs are concerned about various issues including the replacement of fixed-term tenancies with periodic tenancies.

Now the MPs and Ministers have reached a stalemate and the Bill's supporters fear that time is quickly running out to make the Bill law.

Mr Mangnall told The Sun: "I want to amend the Bill not to kill it.

"It's my role as a legislator to ensure we pass sensible legislation. We've had constructive meetings with Michael Gove.

"This is about trying to find the right balance."

'Nothing short of a disgrace'

The chief executive of Generation Rent, Ben Twomey, said: "If the Renters (Reform) Bill were to collapse as this report suggests, it would be the biggest betrayal of renters in a generation and nothing short of a disgrace.

"Ending Section 21 'no-fault' evictions has been promised for almost five years and the prospect that government might abandon its word to 12 million renters because of party infighting is shameful."

He added: "The Bill intends to, in its own words, 'rebalance the power between tenants and landlords', but no compromise appears to be enough.

"Concessions to weaken and delay the Bill's impact have already been made.

"This Bill is more than fair to landlords and the major landlord organisations all support reform."

'Ungovernable rump of Conservative MPs'

The campaign manager at the Renters Reform Coalition, Tom Darling, told the newspaper: "Another delay to this legislation caused by an ungovernable rump of Conservative MPs – many of whom are landlords.

"It's becoming clear they are intent on tanking their own manifesto commitment to end no-fault evictions at the eleventh hour.

"The truth is the Renters (Reform) Bill is the bare minimum renters need - we won't support a grubby deal between the Government and landlord backbenchers that is little better than the miserable status quo."

A Department for Levelling Up, Housing and Communities spokesperson said: "Our landmark Renters (Reform) Bill will deliver a fairer private rented sector for both tenants and landlords.

"It will abolish section 21 evictions – giving people more security in their homes and empowering them to challenge poor practices.

"We continue to meet regularly with a range of groups, representing all those in the private rented sector."

'Student landlords wanting to congratulate the MPs'

Simon Thompson, the managing director of Accommodation for Students, said: "There will be a lot of student landlords wanting to congratulate the MPs who are asking questions.

"It's particularly pleasing to see questions being asked about the introduction of periodic tenancies which will damage the student accommodation sector.

"If student landlords and some MPs can ask whether it's right that purpose-built student accommodation (PBSA) providers can retain ASTs but private student landlords can't; then why can't the government?"

He added: "The Bill is still misunderstood and will hurt the private rented sector - the consequences of the Bill being enacted could be severe and, no doubt, landlords will get the blame for selling up too."