Housing Secretary, Michael Gove, has called the bill, which was set in motion under Theresa May in 2017, a “once-in-a-generation overhaul of housing laws”.
The scrapping of Section 21 “no-fault” evictions should give renters more security, and has been widely supported by renting campaigners, though there are concerns landlords will still be able to exploit a number of loopholes in the system.
The Renters’ Reform Bill is set to benefit 11 million renters across England, and includes the following changes:
At present, under Section 21 landlords can evict a tenant with two months’ notice without having to give a reason. Section 21 one of the leading causes of homelessness.
At the end of last year, the homelessness charity Shelter found that the number of people served or threatened with an eviction notice was up 80 per cent at the end of 2022 compared to 2021. In London, the number of landlords filing possession claims – a step in the eviction process – is at its highest level ever.
The Government says that the bill also “protects landlords” and will make it “easier” for them to get homes back from renters when they need to sell a property, move in a close family member or in the event that their tenant has not paid rent.
To facilitate this, notice periods will be reduced where tenants have been irresponsible – for example breaching their tenancy agreement or causing damage to the property. The exact reduction of notice periods in these circumstances is not yet known.
The bill must pass through several stages in the House of Commons and the House of Lords before it becomes law, meaning it may not pass by the end of the year. The Government has also promised it will provide at least six months’ notice between the bill becoming law and the rules starting to come into force.
The reforms have faced significant opposition from a small group within the Conservative Party, who feel it is an infringement of landlords’ rights and are threatening to rebel.
However, Labour has been generally supportive of the bill. Sir Keir Starmer told BBC Breakfast on Wednesday: “I actually think what he is saying is broadly right and we would support it.
“Actually, this is a step in the right direction. I do think that having promised it in 2019, they could have done it a bit more quickly but, look, it is right to give renters more security.
“I don’t think that no-fault evictions are right, they don’t give security. So I broadly support what the Government are doing today for renters. But there is a fundamental underlying issue here which is rents are very high. It takes a huge amount of the monthly income that people have.”
Renting campaigners have widely welcomed the reforms, but have warned that the Government must ensure no loopholes are left open for rogue landlords to exploit.
Polly Neate, chief executive of Shelter, said: “The millions of people renting in England are at last one step closer to fairer, more secure housing. The Renters’ Reform Bill is a once-in-a-generation opportunity to finally fix private renting. A strong bill would be a gamechanger, meaning tenants can live without fear their homes could make them sick, families feel able to put down roots in their communities, and worries about being unfairly evicted are a thing of the past.”
She added: “The Renters’ Reform Bill must truly deliver change for renters when it becomes law, and it should be as strong as possible with every loophole closed, so that no renter can be unfairly evicted. The Government must keep renters at the forefront to make sure this bill has the teeth needed for real change.”
Dan Wilson Craw, acting director of Generation Rent, called the reforms “a huge opportunity to improve the lives of the 11 million people who now rent from private landlords in England”.
The National Residential Landlords Association (NRLA), which represents landlords, has raised concerns that landlords with a “legitimate reason” to evict someone will still be able to “as quickly as possible”.
“Ministers must develop a plan to improve the speed and efficiency with which the courts process possession claims. Although the Government has accepted NRLA calls to digitise cases, staff numbers need to increase in the court system as well to meet the needs of these reforms,” said NRLA chief executive, Ben Beadle.
