An update on the Renters Rights Bill
Our recent article set out the key provisions of the Renters’ Rights Bill (“the Bill”) which was introduced by the Labour Government and how it is likely to impact on registered providers.
Since our article was written the Bill has been through the first and second reading in parliament and is currently at the committee stage.
Abolition of S21
A cornerstone provision of the Bill is abolition of the assured shorthold tenancy regime which would, effectively, end Section 21 evictions also known as “no fault evictions”.
A key aspect of the Bill, distinct from the Renters (Reform) Bill introduced by the Conservative Government which never became legislation, was the lack of a transitional period with the relevant date all tenancies will convert being a date specified by the Secretary of State.
Whilst the lack of a transitional period has caused some concern in relation to the social housing sector the government guidance now indicates that the abolition of S21 evictions will be “at a later date”.
The Government guidance states “We remain committed to abolition of section 21 in the social rented sector too. While our intention is to do this as quickly as possible, we consider it necessary to update our Direction to the Regulator of Social Housing so that they can update their Tenancy Standard. This will ensure it is clear what registered providers must do under the new system. As this requires a statutory consultation process, we will apply the new system to social tenancies (where the landlord is a private registered provider of social housing) at a later date.”
Committee stage
During the committee stage of the Bill concerns have been raised as to whether His Majesty’s Court and Tribunal Service (“HMCTS”) would be equipped to deal with the change in legislation and the significant delays which may be encountered in recovering possession of a property. In his responses to the committee the Minister for Housing and Planning, Matthew Pennycook MP, stated that “there is a shared understanding between the sector and the Government that ensuring that the Courts and Tribunals Service is prepared for the implantation of the new tenancy regime is essential” that “the court system is on its knees after the past 14 years” and that “We have chosen to implement the new tenancy system in a single stage. The commencement date will be made clear in due course, but we will ensure that the Courts and Tribunals Service is prepared for the implementation of the new system. That is essential, and a huge amount of work is going on to ensure that will be the case”.
The concerns around the capacity, and funding, of HMCTS has wider implications however, in the context of the Bill, the comments do mean that all parties, including registered providers, have a lack of clarity of when the provisions of the Bill will come into force given they are, seemingly, contingent on HMCTS being “prepared” for the implementation and the lack of certainty as to what changes, and specifically the timeframe and metrics of any changes, that will be required in order to make HMCTS “prepared”,
Call for evidence
In light of the Bill passing through parliament the Public Bill Committee is seeking submissions on the Bill from anybody with relevant expertise, experience or interest.
Submissions can be emailed to scrutiny@parliament.uk and further guidance can be found here.
The Public Bill Committee will finish their consideration of the Bill by 28 November 2024 so registered providers with any comments on the Bill should write to the committee as soon as possible to ensure their voice is heard.
Daniel has extensive experience dealing with disrepair matters, acting for registered providers and housing associations, including cases involving the Equality Act 2010 and Environmental Protection Act issues.
