Done right, the renters’ reform bill could transform the lives of millions of tenants

The private rented sector is estimated to house more than 20% of the population and is predicted to grow by 24% over the next four years. It’s not just the young who are renting; 1.1 million over-50s now rent, an increase from 651,000 just a decade ago. The dawn of Thatcherism resulted in the removal of the state as the primary housing provider. This, along with three decades of wage stagnation and wealth concentration, has meant renting is the only way for many people to find a home.

In several European countries, long-term renting has been the norm. The standards are good, and the obligations on landlords mean renters can be assured of secure housing. Here in the UK, the property market has been left to fester with disastrous results. Regulation has not kept pace with this ‘market’, and the consequences are insecure, overpriced and inadequate homes.

Last month, I was contacted by a mother who had privately rented for 13 years. She has five children, two of whom are disabled. This mother had been told that the landlord wanted her out and was going to serve her with a section 21, ‘no-fault’, eviction notice. Quite rightly, she is terrified. She might need to leave the area due to the price of private renting in Brighton, upending the life and education of her children, or move into council temporary accommodation. All of this at the whim of a landlord – to whom she has paid 13 years of rent.

I’ve painted a desperate situation, but in the Queen’s Speech we have a glimmer of hope with the government’s announcement of a renters’ reform bill. The government promised similar bills in the last three Queen’s Speeches but on this occasion they have given us a little more detail. As chair of the all-party parliamentary group on renters and rental reform the minister wrote to me to say this would be a “once-in-a-generation reform”, outlining what might be in the bill.

Firstly, he pledged that the government would abolish section 21 evictions to “deliver a radically fairer deal for renters, enabling them to challenge poor practice”. Research by the housing charity Shelter found that a household is served a section 21 eviction every seven minutes. This does not include those who are threatened with one and leave before it can be served. Evictions place a horrific financial and emotional burden on those faced with the prospect of losing their homes, so it is only right that we end no-fault evictions.

The devil will be in the detail, though, as the government is yet to explain how it is going to prevent landlords from jacking up the rent to an unaffordable amount, resulting in an eviction for rent arrears. These economic evictions will become commonplace unless we are able to close this potential loophole. I agree with Sadiq Khan that the obvious solution is rent controls. Unfortunately, we might need to wait for the next Labour government for that one.

Something that might be possible in this bill is compensation for tenants who are evicted for any reason. If a landlord has to pay two months’ rent to a tenant for evicting them, this could act as a financial deterrent and would also provide money for the tenant to find new housing. Another proposal is to allow tenants to remain in their home if the house is sold to another landlord. If the home is sold for the purpose of leasing, then the tenant should not have to suffer the disruption of an eviction. I’d also like to see any tenant be given first refusal if the property is to be sold. This would at least give the renter the opportunity to buy their home.

The minister’s letter also stated: “We will require all landlords to register with a new private rented property portal.” This could be a very welcome change. Currently, we have no idea how many landlords there actually are or where they are. Where we have licencing schemes – such as in the London borough of Newham – local authorities are better able to enforce standards and collect data on the market. This property portal has potential to root out the bad landlords and to lift standards by properly regulating the sector.

Finally, the most interesting part of the letter was the proposal for the “introduction of a new [private rented sector] landlord ombudsman covering all PRS landlords who rent out property in England, giving private rented sector tenants full access to redress”. For too long, tenants haven’t been able to find redress for the few rights they actually do have. Deposit schemes regularly steal tenants’ money because they mark their own homework with internal disputes processes. Landlords generally have the resources and the upper hand in the power dynamic of disputes. A properly-funded ombudsman with the scope to arbitrate on disputes could be a game-changer for the sector.

The government has promised a white paper ahead of the bill, meaning there will be more consultation about what is to go into legislation. Renters’ groups like Acorn, Shelter, Crisis and the London Renters Union, along with the mayor of London and other authorities, have formed a Rental Reform Coalition to help lobby in this process. This bill could transform the lives of millions, giving them more security and dignity in their homes – but it won’t be done without a fight.