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Renters (Reform) Bill - Sitting 5

21 November 2023

Proposing MP
North Wiltshire
Type
Public Bill Committee

At a Glance

Issue Summary

James Gray is welcoming the Committee to consider the Renters (Reform) Bill and providing guidance on its purpose and procedures. The statement discusses the Renters (Reform) Bill and its impact on private sector tenancies, emphasizing the need to strengthen tenant protections. Matthew Pennycook questions whether the current county court system requires significant improvements before implementing reforms to tenant possession claims. The statement discusses concerns about the implementation of the Renters (Reform) Bill and the dependency on court system improvements before the new tenancy system can come into force. The statement discusses the implementation of clause 1 and other clauses in chapter 1 of the Renters (Reform) Bill and the concerns regarding delays and uncertainty. James Gray is addressing concerns about the Renters (Reform) Bill, particularly regarding the delay in abolishing section 21 evictions due to court reform issues. MP Lloyd Russell-Moyle supports clause 1 of the Renters (Reform) Bill but expresses concerns about delays in its implementation and the potential reintroduction of fixed-term tenancies. The statement discusses the Renters (Reform) Bill and the importance of clause 1, which aims to provide flexibility for tenants to leave their tenancies under certain conditions. The statement discusses the Renters (Reform) Bill and its aim to abolish section 21 no-fault evictions. James Gray is discussing the Renters (Reform) Bill, specifically clause 2 and its impact on tenancy agreements. The statement discusses amendments to extend greater hardship provisions to new mandatory grounds for possession in rental properties. James Gray is addressing concerns regarding the Renters (Reform) Bill's mandatory possession grounds. MP Matthew Pennycook discusses amendments to Clause 3 of the Renters (Reform) Bill that aim to introduce discretion for courts when making possession orders under Ground 6A. Amendment 138 would require landlords to provide evidence regarding the state of occupation and progress of sale of a property obtained under possession grounds 1 or 1A within 16 weeks. The amendments propose changes to the Renters (Reform) Bill to strengthen protections against unfair evictions and ensure landlords provide evidence and verification when seeking possession of a property. The statement discusses amendments to the Renters (Reform) Bill concerning tenant protections against eviction. The speakers are discussing amendments to the Renters (Reform) Bill that aim to address tenant vulnerability and landlord abuse. Lloyd Russell-Moyle discusses amendments to provide additional protections for tenants in the context of rent increases and property sales.

Action Requested

The MP requests that members follow rules during committee meetings, such as submitting amendments by specific deadlines, and emphasizes the need for a balanced approach in amending the Bill to protect both tenants' rights and landlords' interests.

Key Facts

  • The Renters (Reform) Bill was debated on Second Reading without Division.
  • Clause 1 will remove fixed terms and limit rental periods to prevent unscrupulous landlords from imposing longer periods.
  • Government new clause 2 requires landlords to refund rent in advance if the tenancy ends early.
  • Government new clause 6 ensures tenants remain liable for council tax until the end of their tenancy agreement.
  • The Housing Act 1988 introduced the assured tenancy regime in January 1989.
  • Clause 1 of the Renters (Reform) Bill aims to make all future assured tenancies periodic and open-ended, removing fixed terms.
  • Government new clause 6 seeks to manage the transition between tenancy regimes regarding council tax liability.
  • Giles Peaker described the possession claims system as “well honed”.
  • Simon Mullings stated that the civil procedure rules deal with possession claims very well.
  • Richard Miller argued for seeing the new tenancy system put in place first to understand what a new digital system needs.
  • The Government committed £1.2 million to begin designing a new digital system for possessions.
  • The King’s Speech briefing note refers to improvements needed for court possession action process.
  • The Government committed to abolishing section 21 evictions over four and a half years ago.
  • Since the commitment, just under 80,000 tenants have been at risk of homelessness due to section 21 notices.
  • The Government have had more than four and a half years to improve the court system but have failed.
  • HMCTS's progress on delivering critical reforms is set to deliver less than originally planned after seven years.
  • The project to digitise private family law was announced in 2020 with a completion deadline of December 2022, which has not been met.
  • The Renters (Reform) Bill aims to end section 21 evictions.
  • 23,000 households have lost their homes since the Government introduced the principle of the Bill.
  • An additional 35,000 households could lose their homes if provisions do not come into effect until the end of 2024.
  • MPs agree on the need for court and bailiff reforms.
  • The original Act introduced assured tenancies expected to dominate but assured shorthold tenancies became dominant.
  • Only a very small number require bailiffs after courts issue eviction notices.
  • Gemma Marshall in north Devon has had to change her children's school three times due to frequent moves.
  • Amy Donovan in London faces difficulties commuting to work due to moving multiple times.
  • Clause 1 allows tenants to leave their tenancies if they need to, but Bailey emphasizes the importance of a regulatory framework.
  • There is a need for localised, driven regulatory systems that deal with bad actors in the rental market.
  • Clause 1 of the Bill aims to abolish section 21 no-fault evictions.
  • Government new clause 18 deals with property abandonment and removal of provisions that would allow landlords to recover possession without a court order if tenants had abandoned properties.
  • The Housing and Planning Act 2016 introduced provisions for landlord recovery of possession without a court order, which are being removed as they are inconsistent with the Bill's intentions.
  • Clause 2 will remove section 21 of the Housing Act 1988.
  • There is no maximum period specified in the Bill between the first and second implementation dates.
  • The guidance on tenancy reform was published alongside the Bill on 17 May.
  • Amendments extend greater hardship provisions to mandatory grounds for possession.
  • Proposed new grounds 1A and 6A are included in the amendments.
  • The amendments aim to provide courts with discretion to consider the consequences of eviction on tenants.
  • Amendments 145, 146, and 150 seek to address greater hardship provisions in mandatory possession grounds.
  • Grounds 1, 1A, and 6A are discussed as areas of concern.
  • The statement raises the risk that ground 6A could be misused if not properly guided.
  • Amendment 149 seeks to give the court discretion to refuse a possession order under Ground 6A if alternative actions can meet enforcement objectives.
  • The amendment includes specific considerations such as management orders, reduction of overcrowding, provision of suitable accommodation, and alternative means of enforcing landlord defaults.
  • The proposed amendment aims to protect tenants from eviction due to poor practice by landlords and discourage discouraging tenants from seeking enforcement action.
  • Amendment 138 would add new provisions to clause 3, page 3, line 3.
  • Landlords are required to submit evidence within sixteen weeks after an order for possession is made on grounds 1 or 1A.
  • The evidence must include details of the state of occupation and progress of any sale of the property.
  • Amendments require landlords to provide verified statements for eviction claims.
  • Evictions under Grounds 1 and 1A are prohibited within two years of tenancy start or six months after rent increases.
  • Landlords must offer tenants the right to buy at market value before selling under Ground 1A.
  • Paragraphs in schedule 1 revise ground 1 for possession.
  • A new mandatory ground 1A is introduced if a landlord intends to sell the property.
  • Landlords are not required to provide prior notice under the amended Bill.
  • Samantha Stewart gave an example of abuse involving Luke's eviction despite previous complaints.
  • Amendments 138 and 139 require landlords to provide evidence before issuing notices.
  • The protected period is currently six months but proposed to be extended to two years.
  • Private rented tenants who complain about conditions or disrepair are two and a half times more likely to receive a no-fault eviction order than those who do not.
  • Most landlords will not behave in abusive ways, but without stronger safeguards, thousands of vulnerable people could be evicted under grounds 1 and 1A.
  • The National Residential Landlords Association has described the idea of renewing six-month protection on rent renewals as bonkers.
  • Lloyd Russell-Moyle has tabled amendments for six-month protection periods when rent increases are agreed upon.
  • He proposes a right of first refusal for tenants to buy the property at the initial listing price before it is put on the open market.
  • The amendments aim to prevent tenant displacement and provide stability in rental agreements.
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