New Renters’ Rights Bill: Tougher Eviction Rules

Housing Minister Matthew Pennycock wants to introduce strict rules restricting landlords' ability to evict tenants in the proposed rent reforms.

The new minister also wants to upgrade private rental home standards, starting with making homes warmer and requiring higher energy efficiency.

A media leak, probably by Labour insiders looking to test reaction to the measures, reveals:

• A hardship test would allow courts to refuse a possession order if eviction would mean undue hardship for the tenant. Hardship factors would include stopping evictions of tenants with terminal illnesses or those who are likely to lose their jobs or become homeless as a result of the eviction.
• Landlords must offer a property to the tenant before a sale on the open market.
• The wait before a landlord can sell or move a relative into a rental home is extended from six months to two years.
• Remove persistent arrears - owing two months rent on three occasions -  as grounds for eviction.

Abandoned bill revitalised

After months of infighting between ministers and backbench MPs, the Tories abandoned their Rent (Reform) Bill in July's run-up to the general election. Many MPs who rent out investment property argued that the bill was unfairly weighted towards tenants and obstructed its passage through Parliament.

The tables have now turned, with Labour holding a 174-seat majority at Westminster to outnumber Tory dissenters.

The bill returns under a new name - the Renters' Rights Bill.

Labour also wants to reintroduce energy efficiency targets dumped by former prime minister Rishi Sunak.

The new energy performance certificate rating requires all rented homes to have a rating of C or above by April 2030.

Impractical targets

Sunak abandoned the plan because it was too expensive. Many homes would need expensive refits of double glazing, insulation, and heat pumps. The Tories wanted to cap the investment cost at £10,000 a property to keep the upgrade costs reasonable.

However, Labour are considering a higher cap or none at all.

Experts estimate that upgrading from a G EPC rating to a C would cost £27,000, while spending £10,000 would raise 90 percent of D-rated homes to a C.

A government spokesman said: “The private rented sector desperately needs reform, and our new bill will make renting fairer for all.”

The Tories argue the EPC targets are impractical.

“Large numbers of rented properties are incapable of being upgraded, so what do you do?” said influential backbencher Bob Blackman.

“The measure’s likely to see fewer homes to rent and higher rents as the costs of upgrading trickle down to tenants.”