A new law that will ban Section 21 no-fault evictions will be introduced, along with legislation to ‘give greater rights and protections’ to tenants, the King’s Speech revealed.
Speaking at the opening of Parliament, King Charles revealed the legislative process of the new Labour government.
He also announced that there will also be legislation for leasehold and commonhold reform.
The speech also revealed that Labour ‘will get Britain building’ to ‘accelerate’ the delivery of ‘high-quality infrastructure and housing’.
That includes a manifesto promise to build 1.5m new homes over the next five years.
Make an already serious supply crisis worse
Chris Norris, the National Residential Landlords Association’s policy director, said: “With an average of 15 households chasing every available home to rent, it is vital that rental reform does not make an already serious supply crisis in the private rented sector worse.
“The system that replaces Section 21 no-fault evictions 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.”
He added: “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. This is far too long.
“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.”
The end to no-fault evictions
Ben Twomey, the chief executive of Generation Rent, said: “It is welcome to see the end to no-fault evictions included in the government’s plans.
“After five years of promises from the previous government, with no improvements at the end of it, renters are understandably demoralised and wary of new commitments.
“The government faces a big test to reassure voters that it can quickly turn promises into action and change things for the better.”
He added: “These reforms must therefore go further than the previous government planned, with real support for tenants whose landlord wants to sell or move back in to prevent homelessness.
“This includes more time to enjoy our homes without fearing eviction, and more notice and financial support if this happens.
“Similarly, empowering tenants to challenge rent increases won’t work if we still end up with rents rising faster than our incomes.”
Government confirming plans to scrap Section 21
Oli Sherlock, the managing director of insurance at Goodlord, said: “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.”
He added: “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.”
‘Turbocharge’ the building of new homes
Lauren Hughes, the head of customer success at Vouch, said: “I’m sure the whole sector is delighted with the government’s ambitious plans to ‘turbocharge’ the building of new homes.
“The only route to re-stabilising the housing sector is building more high-quality homes – this will get more supply into the rental market, take pressure off tenants, and create new investment opportunities for landlords.
“But houses aren’t created overnight, so we need to get shovels in the ground as quickly as possible if we want to see the impact within a reasonable timeframe.”
Scrap Section 21 ‘no-fault’ evictions
Adam Jennings, the head of lettings at Chestertons, said: “Labour promised to scrap Section 21 ‘no-fault’ evictions on day one of the new government and fulfilled this promise today.
“After the Renters (Reform) Bill was abandoned when a snap General Election was called, tenants were left in the dark about their future rights, so today’s announcement brings some relief and clarity.”
He adds: “Particularly in London, a city with one of the world’s most competitive rental markets, tenants will likely appreciate Labour’s move to improve tenant rights.
“It’s worth noting, however, that Labour’s announcement comes during the busiest season for the lettings market and could lead to an additional boost in tenant demand.”
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