Renters' Rights Bill set to bring in 'hardship' test to prevent evictions

Labour is considering introducing 'hardship tests' like those used in France which would need to be done before evicting tenants – which would effectively ban evictions if the tenant will be made worse off.  

According to the Telegraph, housing minister Matthew Pennycook supports this idea, which aims to reduce tenants from becoming homeless. 

The proposed hardship tests as part of the government’s Renters’ Rights Bill could make it more difficult for landlords to evict tenants in some circumstances.  

A judge might reject the landlord's bid for possession if, for example, a tenant would lose their job, has terminal cancer or if eviction would make them homeless. 

Under the French system, a tenant with no rehousing options and is facing eviction can appeal under the country’s Right to Housing Act. 

Energy efficiency targets for landlords 

The Telegraph also reveals that the government will bring in energy efficiency targets for landlords - potentially without a spending cap. 

The move for rented homes to have a minimum energy performance certificate of C was previously binned by Rishi Sunak.  

But from 2030, all rental properties must have this EPC rating which could see landlords forking out for expensive improvements such as heat pump installations, insulation and double glazing. 

Estimates suggest that upgrading a property from the lowest 'G' rating to 'C' could cost £27,000.  

While spending £10,000 could bring 90% of properties with a 'D' rating to 'C' - but would only bring 60% of 'E' rated properties up to the minimum required.  

The previous government had proposed a £10,000 cap on upgrade costs, but the current ministers, the newspaper reports, are considering a higher cap or no cap at all. 

Hardship test being imposed 

Bob Blackman, the Conservative chair of the 1922 Committee, says the hardship test being imposed on the private rented sector would be 'unfair'. 

He told the Telegraph: "Governments of all persuasions have relied on the private rented sector to supply what the social rented sector should supply. 

"So, we're going to get more restrictions on the private rented sector again which is going to be unfair on the private sector landlords who are providing a service." 

He also says the proposed EPC target is 'not practical' because many rented homes cannot be upgraded. 

He also said that EPC improvements would lead to rents increasing. 

A government spokesman told the newspaper that the PRS is 'in desperate need of reform' and renting would be made 'fairer for all' with the Renters' Rights Bill. 

They also said that improving EPC measures would help reduce fuel poverty and, they stressed, responsible landlords 'have nothing to fear' from the regulations. 

'Harder for landlords to manage their properties' 

The managing director of Accommodation for Students, Simon Thompson, said: "These new proposed policies could make it much harder for landlords to manage their properties.  

"The hardship test might protect vulnerable tenants, but it also adds another layer of complexity to the eviction process.  

"And the energy efficiency requirements, while good for the environment, could be financially challenging for many landlords." 

He added: "It's important for landlords to stay informed and prepared for these potential changes."