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July 18

NRLA Calls for Court Reform Alongside Section 21 Changes

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The National Residential Landlords Association has expressed concern that the proposal to end Section 21 eviction powers, advocated by some, could exacerbate rather than alleviate challenges faced by renters. They argue that such a move, if implemented in isolation, may overlook the broader complexities of rental housing dynamics. This cautionary stance comes amidst the backdrop of recent developments outlined in the King’s Speech. Here, the government pledged to introduce a Renters’ Rights Bill aimed at bolstering protections and rights for tenants, including the abolition of ‘no fault’ evictions and revisions to grounds for possession.

According to the NRLA, the focus on ending ‘no fault’ evictions must be balanced with measures that ensure landlords can effectively manage their properties and maintain rental housing availability. They emphasize that while tenant rights are crucial, policies must also consider the practical implications for landlords, who play a vital role in the housing market’s functioning. This nuanced perspective underscores the need for comprehensive reforms that address the interests and concerns of both tenants and landlords alike.

The announcement in the King’s Speech marks a significant step towards reshaping the rental landscape in the UK. By promising enhanced rights and protections for renters, including reforms to eviction procedures, the government aims to create a fairer and more secure renting environment. However, the NRLA’s caution reflects broader discussions within the housing sector about the potential unintended consequences of legislative changes. As these proposals move forward, balancing the interests of all stakeholders will be crucial in achieving sustainable and equitable housing policies.

NRLA policy director Chris Norris emphasises the critical need for rental reform not to exacerbate the already severe shortage of available rental properties, with an average of 15 households vying for each home. He stresses that any replacement for Section 21 must be equitable and sustainable, benefiting both responsible landlords and tenants. Norris points out the urgency of repairing a justice system that frequently fails those who depend on it.

Highlighting the Housing Minister’s acknowledgement, Norris underscores the necessity for swift court proceedings in cases where landlords have valid reasons for property repossession, such as anti-social behaviour or significant rent arrears. Currently, these processes can take nearly seven months, a delay Norris deems unacceptable and detrimental to effective property management and tenant relations.

“Delays within the justice system exacerbate hardship, stress, and uncertainty for tenants, making it imperative that the government takes decisive action alongside the Renters’ Rights Bill to ensure swift access to justice,” emphasized Chris Norris, policy director at NRLA. He underscored the NRLA’s commitment to collaborating constructively with the government to refine these plans, advocating for solutions that uphold fairness and reliability for both responsible landlords and tenants reliant on the system.

Echoing these sentiments, a former president of Propertymark’s lettings agents’ wing acknowledged the industry’s widespread acceptance of the eventual removal of Section 21. However, they stressed the necessity of implementing comprehensive safeguards alongside this reform. These safeguards are crucial to mitigate potential risks and ensure that any new legislation effectively balances the rights and responsibilities of landlords and tenants within the private rental sector.

Greg Tsuman, former president of ARLA Propertymark and now director of lettings at Martyn Gerrard agency, commented on the inclusion of Renters Reform in the King’s Speech by the new Labour government: “There is a real opportunity here to finally deliver effective Renters Reform. Under the Conservatives, the legislation became overly complex, hindering its effectiveness. It’s encouraging to see this issue prioritised from the outset, and my hope is that the new Bill will be streamlined and balanced to benefit all stakeholders.”

He emphasised the crucial need for the new legislation to strike a fair balance, particularly with regards to abolishing Section 21 or ‘no-fault’ evictions: “In principle, landlords should not oppose this change, provided there are robust provisions to swiftly address tenants who abuse the system. It’s essential that the revised rules ensure landlords can manage problematic tenancies efficiently.”

“For most of the private rented sector, this isn’t usually an issue, but it remains a risk landlords face and need protection from to prevent potential exits from the market. However, merely retaining landlords isn’t the ultimate goal. It’s crucial that the new government actively promotes increased private investment in rental housing to meet rising demand, including expanding affordable housing options.

“Another proposed measure in Renters Reform involves scrapping fixed-term tenancies, which could create more challenges than it solves. Generally, landlords and tenants prefer longer contracts that ensure stability in rent and tenure, and reassure tenants about home quality and the landlord’s commitment not to sell.

“There’s a clear indication that broader reforms for the private rental sector are a priority for the new government. Anticipate further changes to the tax system later this year, possibly during the new Chancellor’s inaugural budget statement in the autumn.”

“If this is indeed the case, I hope to see the government re-introduce mortgage interest rate relief for landlords, in recognition that the policy to remove this has only been detrimental to the market. It has failed as a policy and served as a core reason for rents increasing by around 40% since the changes were rolled out, making it more difficult for renters to find suitable homes, let alone save up to buy.”


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NRLA, NRLA Calls for Court Reform Alongside Section 21 Changes, Renters Reform Rights, Section 21 Changes


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