Key proposals:

• Banning ‘no fault’ Section 21 evictions, providing security for tenants in the private rented sector and empowering them to challenge poor practice and unfair rent increases without fear of retaliatory eviction.

• End to arbitrary rent review clauses, give tenants stronger powers to challenge unjustified rent increases.

• All tenants will be moved on to a single system of periodic tenancies, meaning they can leave poor-quality housing without remaining liable for the rent or move more easily when their circumstances change. A tenancy will only end if a tenant wants to leave, or a landlord has a valid reason, defined in law.

• ‘Responsible’ landlords will be able to gain possession of their properties efficientlyfrom anti-social tenants.

• The Decent Homes Standard will be legally binding in the Private Rented Sector for the first time ever, delivering on the levelling up mission to halve the number of non-decent rented homes by 2030.  Tenants will be able to be repaid rent for non-decent homes.

• Councils will be given stronger powers to tackle the worst offenders, with enforcement pilots to be implemented.

• A new Ombudsman will be created to enable disputes between private renters and landlords to be settled quickly, without going to court.

• A new property portal as a ‘single front door’ will help landlords understand their obligations and give tenants performance information to hold their landlord to account as well as aiding local authorities by providing a register of properties.

• Blanket bans on renting to families with children or those in receipt of benefits will be outlawed.

• All tenants will have the right to request a pet in their house, which the landlord must consider and cannot unreasonably refuse.

The proposals represent landmark reform in the private rented sector.

Speaking on the day the reforms were published The NHC’s Chief Executive Tracy Harrison said,

“Before the pandemic, our research into private rental property standards was already highlighting the challenges faced by tenants. During lockdown we further highlighted the lived experience of Northerners in poor-quality, non-decent, accommodation and the impact that disrepair, cold and hard to heat homes has on their lives.

We welcome these reforms which are long overdue and aim to ensure that the private rented sector offers a stable place to live and meets minimum levels of decency and energy efficiency. The North’s councils stand ready to work with the Government to make this agenda a success – but doing so will mean expanding the capacity of our councils to actively enforce these new standards.”

The End of Section 21 ‘no fault’ evictions

The banning of Section 21 evictions will deliver a radically fairer deal for renters enabling them to challenge poor practice.

What the government calls “responsible landlords” will be able to gain possession of their properties efficiently from anti-social tenants “and can sell their properties when they need to.”

All tenants are to be moved onto a single system of periodic tenancies, which in the government’s words mean “they can leave poor quality housing without remaining liable for the rent or move more easily when their circumstances change.”

There will be a doubling of notice periods for rent increases and tenants will have stronger powers to challenge them if they are unjustified.

The government says it is also “giving councils stronger powers to tackle the worst offenders, backed by enforcement pilots, and increasing fines for serious offences.”

The NHC welcomes this proposal as we have seen considerable evidence of retaliatory evictions taking place following attempts by tenants to improve the quality of their homes.

Removal of ‘no-fault evictions’ is a key step towards increased protection for private renters. It will also be important that landlords are able to get their properties back in a timely fashion where they have a valid reason to do so.

Decent Homes Standard

The requirement to meet a Decent Homes Standard in the private rented sector for the first time is welcome however, achieving the standard across the sector is likely to be an uphill struggle and the performance of enforcing authorities will take on an even great significance.

The reforms will be of particular benefit to renters in the North of England, with data from the English Housing Survey showing that currently, areas in the North have the highest proportion of non-decent private rented homes. The latest data shows around 34 per cent of privately rented homes are non-decent in Yorkshire and the Humber, compared to 17 per cent in the south-east.

A consultation on the new Decent Homes Standard – which will apply to both private and social housing – is due in the summer of 2022.

With more than two thirds of private rented homes in the north below Band C, and the latest DLUHC survey of private landlords showing that 15% of landlords are not aware of the minimum energy efficiency legal requirements at all, driving compliance to higher energy standards will necessitate local enforcement teams to be at full capacity.

DLUHC has shared a report which presents the findings from a study they commissioned carried out by the Centre for Regional Economic and Social Research (CRESR) at Sheffield Hallam University to explore local authority enforcement in the private rented sector.

Property Portal

All landlords will be required to register with a new private rented property portal bringing together information about properties in one place. This has advanced the conversation from a landlord register which the NHC had previously supported and is likely to put more emphasis on registering property and what landlords need to do.

The intent of the portal is to register the property, rather than the landlord however, the reality of the operation of the portal is likely to create a landlord register by another name.

We have supported measures to require the registration of private rental properties, but this must be accompanied by resources and capacity to maintain the portal.

Private Renters’ Ombudsman

The introduction of a new Private Renters’ Ombudsman covering all private rented sector landlords who rent out property aims to give private rented sector tenants full access to redress. This reform stems from previous government consultation which identified gaps in access to redress for private rented sector landlords regardless of whether they employ an agent for full management services.

Conclusion

The White Paper allows for consideration of the proposals ahead of a Renters Reform Bill.

The government has committed to introduce a Bill in this Parliamentary session and ahead of the Bill has committed to establish a local council sounding board to understand front line challenges, inform implementation, and share best practice.

The NHC will gather evidence on the reforms in the White Paper to brief parliamentarians as they consider the progress of the Bill.

Register on MyNHC for our PRS Network Briefing to be held 20^th July, to discuss the proposals in more detail and scrutinise the plans going forward.

Notes

Lockdown, Rundown, Breakdown is a study which highlights the lived experience of people who were living in poor-quality, non-decent, accommodation in lockdown and sets out their coping strategies.

No Home Left Behind, the APPG Housing in the North’s Inquiry into Property Standards in the North’s Private Rented Sector represents 18 months of working in close collaboration with Local Authorities, Housing Associations, Combined Authorities, those representing both tenants and landlords, and third sector organisations.