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Renters (Reform) Bill - Sitting 1

14 November 2023

Proposing MP
North Wiltshire
Type
Public Bill Committee

At a Glance

Issue Summary

James Gray welcomes members to the first evidence session of the Renters (Reform) Bill Committee and introduces the panel of witnesses. The statement addresses concerns about the timing of abolishing section 21 of the Rent Act, which allows landlords to evict tenants without cause, and the need for court reforms before implementation. The statement discusses the Renters (Reform) Bill, focusing on the abolition of no-fault evictions and concerns about potential loopholes that could lead to de facto no-fault evictions. James Gray is discussing issues related to no-fault evictions and economic evictions in the private rented sector. The discussion revolves around proposals to reform no-fault evictions and improve tenant security in the private rental sector. James Gray chairs a committee session discussing various aspects of the Renters (Reform) Bill, including concerns about new possession grounds and supply in the private rented sector. The statement discusses concerns about the proposed Renters (Reform) Bill, particularly regarding the abolition of section 21 eviction notices and its impact on the private rented sector. The statement discusses the inclusion of fixed-term tenancies as an option within clause 1 of the Renters (Reform) Bill. The discussion revolves around the Renters (Reform) Bill and its potential impacts on the rental market, particularly regarding landlord-tenant relationships and regulatory mechanisms. The discussion revolves around improving the private rented sector (PRS) through various regulatory measures such as a housing court, ombudsman services, and longer-term tenancies. The statement discusses the Renters (Reform) Bill and addresses concerns about local authority capacity and resource implications. The discussion focuses on the Landlord Redress Scheme and its implementation within the private rented sector, including the role of an ombudsman and the need for clear guidance on how the scheme should operate alongside local authorities. MP James Gray addresses the need for order during a Public Bill Committee discussion on the Renters (Reform) Bill. MPs are discussing the need for clarity regarding the abolition of section 21 of the Housing Act and the potential impact on court delays. James Gray is concluding the session and thanking witnesses for their evidence.

Action Requested

There is no specific action requested; James Gray is facilitating the introduction of witnesses and declaring interests for the committee meeting.

Key Facts

  • The Renters (Reform) Bill Committee met on Tuesday 14 November at 9:25 am.
  • Witnesses include Polly Neate, Clare Moriarty, and Darren Baxter from Shelter, Citizens Advice, and Joseph Rowntree Foundation respectively.
  • Several MPs declared interests related to property ownership or rental.
  • The Government's manifesto commitment to abolish section 21 of the Rent Act has been delayed due to unspecified court reforms.
  • Shelter supports thousands of renters annually, seeing an increase in homelessness linked to section 21 evictions, with a tenant served with a no-fault eviction every three minutes.
  • In 2022, only about 0.3% of households renting privately in England and Wales went through court proceedings for repossessions.
  • The Scottish experience shows no evidence of significant impact on private rented sector supply since similar reforms were introduced there.
  • No-fault eviction will be abolished under the Renters (Reform) Bill.
  • There are concerns about potential loopholes allowing no-fault evictions through other grounds like reclaiming a house or selling it within six months.
  • The change from 'likely to cause' nuisance to 'capable of causing' could widen the definition of antisocial behavior, risking unjust eviction.
  • There has been a 45% increase in people seeking help for section 21 evictions compared to last year.
  • The rise in homelessness is about 25% year on year generally, and 35% year on year specifically for those in the private rented sector.
  • Retaliatory evictions occur when tenants complain about conditions or refuse a rent increase.
  • Section 21 no-fault evictions are a significant driver of homelessness.
  • Local authorities report intense pressure on their budgets due to increasing numbers of people being made homeless.
  • The local housing allowance is out of sync with actual rental costs in the private sector.
  • Propertymark has 17,500 members working across the UK.
  • The National Residential Landlords Association provides nearly 1 million properties in the private rented sector.
  • Ben Beadle acknowledges that while some landlords are reducing supply, overall the sector is still growing.
  • Year-on-year demand in the private rented sector has increased by 32%.
  • There is a shortage of stock with over one million tenants in receipt of income support who should be in social housing.
  • Royal Institution of Chartered Surveyors survey showed a 43% reduction in homes available to rent in the first 10 months of the year.
  • Timothy Douglas advocates for retaining fixed-term tenancies as an option.
  • He highlights the importance of clarity in defining a 'student let.'
  • Ben Beadle proposes extending a moratorium on no-fault evictions to protect against cyclical nature issues in the student market and prevent Airbnb-like scenarios.
  • The Tenant Fees Act 2019 covers reasonable costs for re-letting properties.
  • Students often move into shared rented properties and may serve notice to leave within a few weeks due to dissatisfaction with roommates.
  • Two redress schemes exist for property agents, but they differ in their approach to code of practice and adjudication.
  • Over half of local authorities are not using their powers effectively.
  • There are concerns about how different regulatory schemes will work together.
  • Some speakers suggest playing with civil procedure rules as a potential reform measure.
  • Local authorities have faced a £240 million reduction in revenue support grant over 13 years due to austerity measures.
  • Significant investment is needed in workforce development to uphold housing enforcement standards.
  • The Renters (Reform) Bill may impose new duties and requirements on local councils without adequate resourcing.
  • The Landlord Redress Scheme aims to provide redress for disputes in the private rented sector.
  • There is a risk of duplication between the roles of councils and the ombudsman, which needs clarification through memoranda of understanding.
  • Local authorities should have flexibility to introduce selective licensing without Secretary of State sign-off based on local need.
  • MP James Gray calls for order to restore proper procedure.
  • Witnesses are instructed to provide evidence rather than engage in debate.
  • No definitive date has been given for the abolition of section 21.
  • Citizens Advice analysis indicates that tenants' willingness to use the complaints process is reduced by about 50% due to fear of eviction under section 21.
  • An ombudsman is proposed as an alternative route to the courts for redress, but it should not be perceived as dealing with low-level disputes.
  • Paul Dennett is the Mayor of Salford and a member of the Local Government Association’s local infrastructure net zero board.
  • Richard Blakeway is the housing ombudsman for the Housing Ombudsman Service.
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