Abolition of Section 21 comes closer with new government

The Labour Party has given the first reading to the Renters’ Rights Bill in Parliament, but the bill will need to progress through both the House of Commons and the House of Lords before it can become law. This bill is Labour’s version of the previous government’s Renters’ (Reform) Bill, a significant piece of housing legislation that did not pass before Parliament was dissolved for the general election.

The Bill includes the abolition of Section 21 no-fault evictions and the inclusion of pets in rental agreements. However, Labour has introduced new reforms, such as extending Awaab’s Law, which requires social landlords to address mould and damp issues within 14 days, to the private rental sector, as well as giving tenants more power to end rental bidding wars.

Landlords and letting agents will be legally required to publish an asking rent and will be banned from accepting offers above this price. The bill aims to empower tenants by allowing them to challenge rent increases and end rental bidding wars. Landlords will also be limited to raising rents once a year, and only to the market rate.

The abolition of Section 21 no-fault evictions will apply to both new and existing tenancies, providing immediate protection to private renters. There is some concern about whether the courts will have the resources to handle the expected increase in cases. So far, there has yet to be any mention of reforms to the judicial system to address this issue.

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