
The Renters’ Rights Bill is among several pieces of flagship legislation that look likely to be delayed as they drag their way through Parliament.
The wide-ranging Bill, introduced by Labour in September, proposes to limit rent increases to once a year, moves to end bidding wars, scraps fixed-term tenancies as well as ban Section 21 no-fault evictions.
Labour, during last July’s General Election, said it would end no-fault evictions “immediately” if it won power, with many in government expecting it to become law this summer.
But now the Bill does not look like becoming law “until at least the autumn,” according to a report in the Financial Times, due to a “grindingly slow parliamentary process”.
The legislation is currently at the report stage in the House of Lords, but still has to go through its third reading in the upper house, and then a further amendments stage before it reaches Royal Assent.
Added to this, MPs’ summer recess lasts from late July until early September.
The Bill is being shepherded by housing minister and deputy Prime Minister Angela Rayner.
Charity Shelter says that around 25,000 households have been threatened with homelessness due to Section 21 since Labour was elected nearly a year ago.
Labour director of communications Mairi MacRae told the FT: “The government has the power to stop this . . . it must make good on its manifesto commitment by passing the Renter’s Rights Bill as soon as possible and naming an implementation date.”
Generation Rent deputy chief executive Dan Wilson Craw adds: “These delays are a massive setback for the 12 million renters across England.
“As well as thousands of renters who will face homelessness as a result of Section 21 in the months ahead, most private renters will continue to face uncertainty over their homes as long as their landlord doesn’t need a reason to evict.”
However, the buy-to-let professionals are undoubtedly happy with the extra time this allows to influence the final Bill.
The National Residential Landlords Association has warned that courts do not have the capacity to handle the extra cases that would occur after no-fault evictions are abolished.
Perenna head of product, proposition & distribution John Davison adds: “The more you tax landlords, the more you squeeze them out of the market, which means that rents rise and fewer people can afford to rent. So, ultimately, it’s the tenants that lose out.”
“The current Labour government is pressing ahead with plans to tighten the regulation of the sector, through the Renters’ Rights Bill.
“It is also looking to force new energy efficiency standards on private rented properties by as early as 2030.”
The government’s Employment Rights Bill, which strengthens worker protections, has also been delayed as it progresses through Parliament.