Una Bedford, Senior Strategy and Policy Officer, gave an overview of the Renters Reform Bill, introduced on 17 May 2023, following the government white papers housing reform strategy. It is believed that a second reading of the bill will be heard sometime in October. The Reform Bill includes a number of measures such as:

o   The end of the Section 21 notice of no-fault evictions from landlords.

o   Civil penalties of up to £30,000 for unlawful evictions can be imposed by local authorities.

o   The abolition of assured and shorthold tenancies and the introduction of periodic assured tenancies.

o   Mandatory written statements from registered providers and private sector landlords to tenants, outlining terms and conditions to recover possession of the property, as well as the rights and obligations of all parties.

o   The amendment of notice periods from 2 weeks to 4 weeks for private landlords, and in instances of anti-social behaviour, reversing the timescale from 4 weeks to 2 weeks to claim earlier possession.

o   The introduction of a private renters ombudsman service to tackle indefensible rent increases.

o   A new digital property portal to fully understand property details and agreements.

o   Tenants can challenge above market rent increases, through the first-tier tribunals to the Property Chamber.

Further legislation is likely to include a ban on landlords excluding renting to housing allowance claimants. The sub-committee were then informed of details missing from the bill which includes:

o   How the Decent Homes Standard for PRS will be managed.

o   Further details in regard to a Housing Court, although the government is in talks with the Ministry of Justice, HM Courts and the Tribunal Service to use a modern digital service, details have not been released.

o   Concerns around Affordable Homes.

o   Details on rent control have not been considered.

Una Bedford informed sub-committee members of the risks associated with a decrease in PRS  properties, due to the abolition of Section 21 notices. There are also  potential issues with some landlords unfairly issuing a Section 8 notice to evict tenants, on the grounds of breaching tenancy agreements with anti-social behaviour as justification.

Further to  questions from the sub-committee, Una Bedford and Karen Swift:

·       Conceded that further details on the reform have not yet been released by the government but will be brought back to the sub-committee once published.

·       Confirmed that shared owners are currently considered shorthold tenants. If arrears are accrued or anti-social behaviour takes place, a possession order would be sought. Once this legislation comes into effect, a shared owner would be viewed as a long leaseholder.

·       Noted that a Private Renters Reform Working Group will be formed to establish the potential impacts, resources and services best placed to mitigate. Growth fund bids and additional ‘New Burdens’ government funding will be a consideration. However, due to a national shortage there are challenges with recruiting Enforcement Officers.

·       Conceded that as landlords are already moving out of the market, consideration should be given to purchase properties from those wishing to sell in order to keep tenants in accommodation

·       Confirmed that the working group will consider all potential impacts the reform will have to the housing advice service, including supporting tenants challenging rent increases with first-tier tribunals and working with other advice organisations. Updates to be brought back to members within the next four months.

·       Explained civil penalties of up to £30,000 for unlawful evictions can be imposed by local authorities. If an eviction takes place due to the owner wishing to move family into the home but this does not happen after a specific time period, further penalties of up to £5,000 can be issued. Full details on this and other enforcement measures are pending.

[Clerk’s Note – the white paper referenced is available here: A fairer private rented sector – GOV.UK (www.gov.uk)]

RESOLVED that:

1.    Further details on the Renters Reform Bill to be brought back to the sub-committee once government updates are released.

2.    Updates on the Renters Reform Working Group to be brought back to the sub-committee within four months.

3.    The presentation be noted.