By The government will deliver the biggest change to renters law in a generation, improving the lives of millions of renters by driving up standards in the private and socially rented sector, delivering on the government’s mission to level up the country.
A “new deal” will be put in place for the 4.4 million households privately renting across England by extending the Decent Homes Standard to the private rented sector for the first time.
These reforms will build on the progress the government has already made in this area, and ensure all renters have access to secure, quality homes, levelling up opportunities for the 21% of private rented who currently live in homes of an unacceptable standard.
New measures will also protect tenants, delivering on a manifesto commitment.
So-called ‘no fault’ Section 21 evictions – that allow rogue landlords to terminate tenancies without giving any reason – will be outlawed, so renters can remain in their homes and communities, and continue supporting the local economy. 22% of those who moved in the past year did not end their tenancy by choice.
Together these reforms will help to ease the cost of living pressures renters are facing, saving families moving from one privately rented home to another an estimated £1,400 in moving costs.
The Bill will also strengthen landlords’ grounds for repossession making it easier for them to evict tenants who are wilfully not paying rent, or who are repeatedly engaging in anti-social behaviour, bringing down neighbourhoods.
Tenants in social housing will also benefit from major reforms to the sector.
The Social Housing Regulation Bill will make all registered social housing providers subject to a tough new regulatory regime, with failing social landlords facing unlimited fines if they fail to meet the standards expected of them.
Levelling Up and Housing Secretary Michael Gove said:
“Too many renters are living in damp, unsafe and cold homes, powerless to put it right, and under the threat of sudden eviction.
The New Deal for renters announced today will help to end this injustice, improving conditions and rights for millions of renters.
This is all part of our plan to level up communities and improve the life chances of people from all corners of the country.”
New deal for private renters
There are 4.4 million households in the private rented sector and the Decent Homes Standard will place a legal obligation on the small number of landlords renting out homes that are of such low quality they are endangering the health of their tenants to quickly improve them.
The reforms will prevent private landlords from benefiting from tax payer money for renting out low quality homes, slashing the £3 billion a year in housing benefit that is estimated to go to landlords renting out non-decent homes.
It will also save the NHS anywhere up to the £340 million a year it is spending on the ill health that low quality privately rented homes create.
Currently, areas in the North have the highest proportion of non-decent private rented homes.
The measures announced in the Queen’s Speech will ensure every private renter in the country can enjoy a good standard of living, spreading access and opportunity across the country.
The Renters Reform Bill will also end the injustice that sees renters unable to put down roots in their communities as a result of Section 21 ‘no fault’ evictions.
A new Private Renters’ Ombudsman will be created to enable disputes between private renters and landlords to be settled quickly, at low cost, and without going to court.
The ombudsman will cover all private landlords letting properties and make sure that when residents make a complaint, landlords take action to put things right.
The Bill will also introduce a new property portal to help landlords understand their obligations, give tenants performance information to hold their landlord to account, and help councils crack down on poor practice.
The government will shortly publish a White Paper setting out more detail on our proposals for landmark reform in the private rented sector and will continue to work with the sector to develop the Renters Reform Bill.
Social renters
The Social Housing Regulation Bill will continue to deliver on the government’s reforms in response to the Grenfell Tower fire as we reach the 5th anniversary of the tragedy.
It follows on from the Building Safety Act and last year’s Fire Safety Act.
The Social Housing Regulation Bill will create a robust regulatory framework that will drive up the standards of social housing accommodation and help tenants and the Regulator hold social housing landlords to account.
It will:
- Create new, tough regulations for better social housing – helping tenants to hold shoddy landlords to account.
- Give the Regulator stronger powers to enforce action if they see failings by social housing landlords.
- Place an expectation on social landlords to place tenants’ concerns at the heart of all they do, with effective resident engagement in place, so no one has to live in sub-standard social housing.
- Provide greater transparency for tenants on how their landlord is performing, how their homes are managed and who is responsible for compliance with health and safety requirements.
- Strengthen the economic regulation of the social housing sector, increasing protections for tenants’ homes and supporting continued investment in the new supply of social housing.
The government also today introduced the landmark Levelling Up and Regeneration bill, which will spread opportunity and prosperity and transform towns and communities across the United Kingdom.
This includes a significant package of measures to revive high streets, regenerate town centres and deliver the high-quality homes that communities need.
It will put the legal foundations in place to deliver the government’s wide-reaching proposals to spread opportunity, drive productivity and boost local pride.
A fifth of renters paying over a third of their income to live in a low quality home.
The NAO published a report on Private Rented Sector regulation in December 2021, which estimated that £9.1 billion in housing support was paid to private renters or directly to private landlords in 2020-21.
29% of renters in receipt of welfare live in a non-decent homes, giving around £3 billion of housing benefit spent on poor quality homes.
The reforms will be of particular benefit to those in the North of England, with data from the English Housing Survey showing that the proportion of non-decent homes is higher in the North than other areas of the country.
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