Labour EXPOSED: Now tenants not paying rent can stay for three months under Labour reforms
Landlords will be banned from removing or taking action against tenants who do not pay their rent for up to three months under Labour rent reforms set to begin next summer.
At the moment, a landlord can only begin processes to repossess their property if a tenant fails to make rent payments for two consecutive months.
Under the Government’s new rental reforms, tenants will also be entitled to four weeks notice before they have to leave whereas currently if a tenant falls into rent arrears they are entitled to two weeks notice.
Labour’s Renters’ Rights Bill is replacing the previous Government’s Renters Reform Bill which kept the threshold for a non-paying tenant to two months before action could be taken.
The Ministry of Housing, Communities and Local Government said the change would “allow tenants more time to repay arrears and remain in their homes, while ensuring landlords do not face unsustainable costs”.
But the news has faced some backlash with Paul Shamplina, of law firm Landlord Action stating: “This is bad news for landlords. A common scenario we see is tenants trying to bring rent arrears just below the mandatory threshold before action can be taken. It has become a common tactic used by savvy tenants.
“So now, under the latest changes, anything less than three months will be a discretionary ground – meaning it is up to the discretion of the judge.”
The Government has suggested landlords can use this discretionary ground if rent is repeatedly late.
Shamplina also highlighted the problem with what he called the “crumbling, unfit court service”.
The Government is set to ban Section 21, also known as “no-fault evictions” from next summer for all tenancies.
This means landlords will be left to apply for a hearing through Section 8 before they can evict a tenant.
Section 8 is currently used if a landlord wants to recover lost rent but is soon to be applied to all evictions.
Shamplina said: “We already have cases where landlords are owed two years of rent but can’t reclaim their properties, with one of our cases dragging on for 19 months without a hearing date yet.
“Now, there will be 35 grounds for possession, rather than 17. But my big fear is the functionality of the courts. Landlords need to know they can get their properties back in a timely fashion.”
The new bill will also ban rent increases being written into contracts to prevent mid-tenancy rises, which means landlords will only be able to raise rent once a year at market rate.
Furthermore, the new laws, which only cover England, will set deadlines for landlords to tackle dangerous conditions in an extension to Awaab’s law, named after a two-year-old who died from the toxic effects of mould.
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Landlords could face up to £7,000 if homes do not meet a “decent homes standard.”
The government said that 21 per cent of privately rented homes are currently classified as “non-decent” and over 500,000 contain the most serious hazards.
In addition, Labour’s reforms will give tenants a strengthened right to request a pet which landlords must consider and cannot unreasonably refuse.
To support landlords, the Renters’ Rights Bill will give them the right to request insurance to cover any potential damage from pets.