Mortgage

Tenants Bill of Rights Enters Critical Reporting Stage – Mortgage Strategy

The Tenants’ Bill of Rights is due to enter report stage mid-month, taking a major step towards becoming law in the wide-ranging legislation.

The bill, which will be considered item by item by MPs from January 14, includes measures to ban section 21 no-fault evictions, limit annual rent increases and apply decent housing standards to the private rented sector for the first time.

Deputy Prime Minister Angela Rayner is considering the legislation, which was introduced in September in parliament.

Labour’s election manifesto last summer pledged to end no-fault evictions “immediately” if it formed government.

“Given Labour’s priority for this legislation, the reporting stage is expected to be expedited and could be completed within a day,” Propertymark said.

The estate agents lobby group added: “Overall, there is broad agreement among MPs from all parties on much of the bill.”

During the bill’s second reading in October, Rayner said: “I am determined to get this bill into law as soon as possible.”

The main contents of the bill include:

  • Tenants will be in a better position to challenge unreasonable rent increases upheld by the courts, and landlords will only be able to increase rent once a year and only at market rates
  • Tenants will resolve disputes faster and reduce the need to go to court with a new ombudsman service
  • Local councils will be given stronger powers to crack down on unscrupulous landlords, with fines for the worst offenders set to rise to £40,000
  • A new repository for landlords to share important information about the standards of their properties
  • Tenants will be able to request pets, and landlords cannot unreasonably refuse

The National Residential Landlords Association called the move “the biggest shock to the rental market in more than 30 years” and warned courts must be prepared to handle more eviction cases.

“With an average of 21 tenants now competing for every available rental home, this bill must not exacerbate the industry’s already long-standing housing shortage,” said Chris Norris, NRLA’s director of campaigns and policy.

“All of this will undermine tenants’ purchasing power and make it harder for them to hold rogue and criminal landlords accountable.”

After the reporting stage of the bill is over, it will undergo a third reading in the House of Commons before being tabled in the House of Lords.

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