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Renters (Reform) Bill - Sitting 2
14 November 2023
Type
Public Bill Committee
At a Glance
Issue Summary
The statement addresses concerns about the new and revised possession grounds in the Renters (Reform) Bill, particularly regarding no-fault evictions and protections for renters. The speakers discuss aspects of the Renters (Reform) Bill including the end of section 21 no-fault evictions and the property portal. Ben Twomey discusses the impact of no-fault evictions and proposed reforms under the Renters (Reform) Bill. The speaker is addressing concerns raised by witnesses regarding issues not covered in the Renters (Reform) Bill, such as guarantors for tenants on low incomes, bidding wars, and limitations on no-fault evictions. The statement addresses concerns regarding the Renters (Reform) Bill and its impact on renters, particularly in relation to eviction protections, tenancy length, and discrimination against tenants receiving benefits. Ian Fletcher discusses the impact of the Renters (Reform) Bill on the build-to-rent sector, highlighting both positive and challenging aspects for the industry. Yvonne Fovargue is questioning Kate Henderson about the implications of the Renters (Reform) Bill for social housing providers, particularly concerning supported accommodation. Kate Henderson discusses concerns about the Renters (Reform) Bill's impact on social housing tenants and providers. The statement discusses the potential consequences of delaying legislation to require private rented homes to meet the decent homes standard. Dr Dawson discusses the importance of incorporating the decent homes standard into the Renters (Reform) Bill and highlights the benefits and limitations of the proposed portal for landlord registration. Dr Dawson discusses the variation in licensing conditions for private landlords across different regions and proposes using the decent homes standard to establish more consistent national standards while allowing local authorities to tailor their approach. The Renters (Reform) Bill and its impact on tenant security and landlord actions are under discussion. Professor Gibb discusses the impact of proposed rental reforms and highlights concerns about access to justice for tenants and continued issues in the housing rental market despite changes. The statement addresses concerns in the lower end of the rental market, particularly regarding housing benefit administration and landlord-tenant relationships. The statement discusses concerns about the linkage between court reforms and the enactment of part of the Renters (Reform) Bill, particularly regarding the impact on tenants and the unclear rationale for the dependency. The speaker discusses the role and benefits of ombudsmen in resolving disputes and providing support within regulated sectors. The discussion focuses on improving the relationship between landlords and tenants and addressing the fragmentation of services available to them. Fiona Rutherford discusses the effectiveness of health justice partnerships in providing legal support to tenants and Professor Hodges suggests an alternative dispute resolution system through ombudsmen for better tenant protection. The statement discusses the impact of section 21 no-fault evictions and proposes adjustments to ensure better protection for tenants. Yvonne Fovargue is concluding the session and thanking witnesses for their evidence.
Action Requested
Witnesses from Generation Rent and the Renters’ Reform Coalition recommend policy changes to the Bill, such as extending notice periods for no-fault evictions, increasing the protected period for rolling tenancies, and enforcing longer no-let periods. They also suggest making possession grounds discretionary to consider both tenant and landlord circumstances.
Key Facts
- The Renters (Reform) Bill aims to abolish no-fault evictions but introduces new no-fault grounds like moving a family member in or selling the property.
- Grounds 1 and 1A allow landlords to give tenants two months' notice, which could lead to homelessness due to the current economic climate.
- The coalition suggests extending protection periods from six months to two years for rolling tenancies.
- Ending section 21 no-fault evictions is welcomed.
- A property portal will be established to track evictions, actual rents, and monitor landlord activity.
- The county court has a system for listing possession claims within eight weeks with fixed rules applied by judges.
- The median time for repossession cases in both section 21 and section 8 was about 22 weeks.
- Jasmine's case shows the potential benefits of extending notice periods to four months.
- The average cost to a renter of an unwanted move is £1,700.
- Twomey proposes waiving two months' rent for tenants undergoing no-fault evictions.
- Witnesses raised concerns about guarantors for tenants on low incomes.
- There are seven times more bidding wars now compared to five years ago, affecting 21% of tenants.
- The current Bill only provides a six-month protected period against no-fault evictions.
- Yvonne Fovargue introduces Ian Fletcher, director of real estate policy for the British Property Federation.
- No specific action or proposal is made by Yvonne Fovargue.
- Build-to-rent sector has been catering to medium earners, key workers, and supporting core cities.
- The sector welcomes many aspects of the Renters (Reform) Bill but raises concerns about rent review clauses abolition and lack of minimum tenancy length.
- Fletcher's concern is based on anecdotal evidence rather than empirical research.
- Kate Henderson is chief executive of the National Housing Federation.
- The National Housing Federation represents housing associations providing 2.7 million homes to around 6 million people in England.
- Three quarters of all supported accommodation in the country is provided by housing associations.
- The National Housing Federation supports the abolition of section 21 but is concerned about unintended consequences for housing associations.
- Henderson's members manage 2.7 million homes.
- Some social housing types, such as intermediate rents and specialist supported housing, are not exempt from rent increase changes proposed in the Bill.
- The Bill proposes widening the definition of antisocial behaviour under ground 14 to any behavior 'capable of causing' nuisance or annoyance.
- The Government intends to require private rented homes to meet the decent homes standard.
- Legislation for this requirement will be brought forward at the earliest opportunity.
- There is concern about the potential consequences of a delay in implementing the decent homes standard.
- The decent homes standard provides clear criteria for housing condition that is measurable and easy to understand.
- Rent Smart Wales has an advisory panel including the CIEH.
- 85% of landlords own one to four properties.
- Some landlords exhibit a 'cult of amateurism' with varying levels of expertise.
- There is a lot of variation in licensing conditions for private landlords across different regions.
- Local authorities tailor their approach to suit their local market, but there is a need for more consistency between the licensing conditions set by them.
- The decent homes standard could provide common grounds for properties nationally if brought into the sector.
- There are about 2.2 qualified environmental health officers for every 10,000 private rented sector dwellings.
- Newham has around 100 environmental health officers or enforcement staff and can handle more than 200 prosecutions annually.
- Rent Smart Wales initially issued about 196 penalty notices and 13 prosecutions in the first couple of years due to unclear systems and processes.
- Landlords have the opportunity to exempt themselves from communications after registering, leading to a lack of updates.
- Dr Julie Rugg from the University of York expresses concern over the current focus on abolishing Section 21.
- The Bill does not prevent landlords from selling properties, which is a significant reason tenants are asked to leave.
- A lack of supply in the rental market is identified as one of the major issues and concerns about worsening supply issues post-abolition of Section 21.
- Professor Gibb's perspective stems from experiences in Scotland after introducing similar rental reforms.
- Research indicates that changes brought confidence to tenants but fundamental issues like shortage and high rents remain unchanged.
- An international evidence review suggests little direct evidence linking increased regulation to disinvestment in the private rented sector.
- The statement introduces Fiona Rutherford, chief executive of JUSTICE.
- Professor Christopher Hodges OBE is an emeritus professor of justice systems at the University of Oxford.
- Yvonne Fovargue leads a session until 16:30 for oral evidence.
- Court performance during the pandemic was better than most jurisdictions.
- Section 21 currently takes roughly 28 weeks from notice to repossession.
- The new approach in the Renters (Reform) Bill is estimated to take possibly a week less than section 21.
- The ombudsman deals with codes of behaviour rather than just legal rights.
- Ombudsmen collect data which provides real-time feedback about issues within regulated sectors.
- There are three existing ombudsmen in the property and housing sector.
- Professor Hodges proposes having one ombudsman for the entire property and housing sector.
- The current system includes multiple ombudsmen such as the Property Ombudsman and Private Rented Redress Scheme.
- Other sectors like financial services and energy have converging regulatory bodies working together effectively.
- Health justice partnerships provide legal support in doctors' surgeries for patients facing non-medical issues.
- Ombudsmen can deliver faster, user-friendly, free dispute resolution compared to courts or lawyers.
- The cap on ombudsman awards should be relevant and amendable over time to ensure proper compensation.
- James Prestwich is the director of policy and external affairs at the Chartered Institute of Housing.
- The CIH believes the balance in the private rented sector is tipped too far in favour of landlords rather than tenants.
- Witnesses have stressed that one of the biggest causes of homelessness is the ending of a tenancy via section 21.
- The CIH recommends extending the two-month notice period under ground 8A.
- Witnesses provided expert testimony during the session.
- The session was ordered to be adjourned until Thursday 16 November.
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