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Monday 23 October 2023 6:37 pm  |  Updated:  Monday 23 October 2023 6:38 pm

Delay to ban on no-fault evictions welcomed by landlords

By: Jessica Frank-Keyes

Political Reporter

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Today's Spring Budget saw landlords receive a surprise handout from Chancellor Jeremy Hunt after he cut the reduction in the rate of capital gains tax applying to residential property.
Tenants will pay a record £85.6bn in rent in 2023 thanks to a double-digit rise in rentals and millennial tenants needing larger homes.

A delay to the long-promised ban on no-fault evictions has been welcomed by landlords despite warnings from housing campaigners over the “human cost”.

Ministers have announced the long-awaited barring of section 21 notices will be put on ice until the UK’s court system is reformed, amid a record backlog of 65,000 Crown Court cases.

Housing secretary Michael Gove confirmed evictions which do not require landlords to prove tenants are at fault will not be enacted prior to improvements to the legal system.

Angela Rayner, Labour’s deputy leader, accused the government of a “grubby deal” to ensure Conservative MPs who had threatened to rebel would back the measures.

The Renters Reform Bill was promised in the Tories 2019 election manifesto and is being debated in the House of Commons this evening. It is expected to pass this stage and will continue its journey through Parliament following the King’s Speech next month.

Research by 38 Degrees earlier this year revealed 87 MPs, including 68 Tories, or around a fifth of the party, and five cabinet ministers – are currently earning income as landlords.

Gove, as first reported by LBC, wrote to Tories earlier this month that “implementation will not take place until we judge sufficient progress has been made to improve the courts”. 

This is expected to include digitisation, boosting retention and recruitment of bailiffs, and offering early legal advice to tenants.

Read more

Foxtons shares tumble as estate agent takes £3m knock from Renters’ Rights Act

Foxtons is London's largest lettings agency brand

It comes as London mayor Sadiq Khan warns that around 290 London renters a week have faced no-fault eviction since ministers first promised to outlaw the measure four years ago.

And he said 15,000 more Londoners could receive section 21 notices before the bill comes in next year, with a third of all no-fault evictions in England in recent years in the capital.

Very pleased to see Government response to @CommonsLUHC include this #landlords @NRLAssociation #rentalreform https://t.co/NkW7Kqjhd9 pic.twitter.com/wxfrhDebOB

— Ben Beadle (@BeadleBen) October 20, 2023

Khan said it was “inexcusable” that four years on, “so little progress has been made”, and Tom Darling, from the Renters’ Reform Coalition, said there was a “terrible human cost”.

While Rayner warned: “This comes at a heavy price for renters who have been let down for too long. Tens of thousands more families who the government promised to protect now face the prospect of being threatened with homelessness or kicked out of their homes by bailiffs.”

But the National Residential Landlords Association (NRLA) welcomed the move, with chief executive Ben Beadle saying he was “very pleased” with the outcome.

“Following extensive campaigning by the NRLA, we welcome the approach taken by ministers to ensure court improvements are made before section 21 ends,” he added.

The Prime Minister’s official spokesman said: “It’s right that courts are ready for what will be the most significant reforms to tenancy laws in three decades.”

Read more

Foxtons hits out at Renters’ Rights Act as profit halves

Foxtons is London's largest lettings agency brand

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