Millions of tenants will be protected from no-fault evictions and exploitation by rogue landlords from Friday as a new law comes into force. The Renters Rights Act contains sweeping reforms, including a landmark ban on Section 21 notices, preventing people from being kicked out of their homes without a reason. The practice, which allowed landlords to turf out their tenants on a whim, is one of the leading causes of homelessness.
Housing Secretary Hails 'Biggest Increase in Rights'
Housing Secretary Steve Reed told the Mirror: “The Renters Rights Act is going to be the biggest increase in rights for people who rent their home that we've seen in this country in a generation. Renting your home has been far too insecure, so it puts security back for people.” Campaigners said the legislation has "dragged our archaic rental system into the 21st century". Under the new laws fixed contracts have been axed so renters can end any tenancy with two months’ notice.
Key Reforms: Bidding Wars Banned, Rent Hikes Limited
Bidding wars that drive up prices have been banned and tenants handed greater powers to challenge unreasonable rent hikes. Rent increases will be limited to once a year and upfront rent demands to just one month’s payment. Landlords will be banned from discriminating against prospective tenants for being on benefits or having children - and pet requests must be reasonably considered. The rules, which will protect an estimated 11 million private tenants in England, carry penalties of up to £40,000 if broken.
Part of Wider Push to Fix Housing Crisis
Speaking in his office in Westminster, Mr Reed said help for renters was part of a wider push to fix the housing crisis, which includes a drive to build more council, social and affordable homes. “We're trying to change the whole system to make the housing sector fairer for people, whether they rent, whether they buy, or whether they need a council home,” he said. Labour made a manifesto vow to build 1.5 million new homes by the next election - but industry bodies are sceptical the Government will hit this target. Mr Reed insisted it was still the aim, saying: "We always expected it would ratchet up over the course of this Government. It's not going to happen equally as 300,000 every year. We're just over 18 months into this government, 342,000 homes have been built but we know that needs to go up as a rolling rate but we expect it to because we brought in the changes to streamline the planning process, we brought in £39billion for social and affordable [homes]."
Rent Controls Ruled Out
The Housing Secretary poured scorn on the idea of rent controls after reports that Rachel Reeves was considering enacting a year-long rent freeze. The Chancellor stoked speculation by telling MPs on Tuesday that ministers would “use every lever we have to bear down on the cost of living, including for people in the private rented sector”. But No10 explicitly ruled it out, with the PM's spokesman saying: "That is not the approach we will be taking." Mr Reed hit out at the idea, arguing that it drove landlords to massively hike rents after tenants moved out, pricing people out. “It’s not a good idea,” he said. “Superficially, rent control sounds attractive, because you think, ‘Oh, my rent won't go up’. That sounds like a good thing. But in reality, it doesn't work like that.”
Campaigners Celebrate 'Quantum Leap Forward'
Sarah Elliott, Chief Executive of Shelter, said: “Today marks a quantum leap forward in the fight for renters’ rights. After decades of campaigning, the Act has dragged our archaic rental system into the 21st century. With Section 21 abolished, gone are the days when tenants could be evicted for no reason whatsoever and with only two months’ notice. More than 2,000 households a month will now be protected from the threat of homelessness directly caused by no fault evictions." Clara Collingwood, Director at the Renters Reform Coalition, said: "These are the biggest changes to private renting in a generation and will give renters security and peace of mind in our homes. It's taken years of campaigning by renters' organisations to get us to this point, and the Renters' Rights Act is a huge step forward. But the Act will not end the cost-of-renting crisis pushing many tenants into poverty - at the Renters' Reform Coalition we won't rest until renters have homes that are affordable as well as decent and secure."
