Renter reforms watered down after Tory concerns

The government has set out a series of changes to planned protections for renters in England, after some Conservative MPs raised concerns they would be too burdensome for landlords.

The proposals include making tenants commit to a minimum six-month period when renting a property.

Campaign groups representing renters accused ministers of watering down the legislation to appease landlords.

But landlord groups said the changes were fair and balanced.

Other changes include delaying a ban on no-fault evictions for existing tenancies until an assessment by the justice secretary on the the readiness of the court system to deal with repossession claims is published.

The Renters (Reform) Bill, which was first introduced to Parliament last May, would abolish no fault-evictions in England, where tenants can be forced to move out with no justification.

It would mean that landlords could only evict tenants under certain circumstances, including when they wish to sell the property or when they or a close family member want to move in.

Last month the BBC revealed ministers were consulting backbench Conservative MPs on watering down their proposed reforms.

And the bill’s progress through Parliament has been slow, after around 50 Tory MPs, some of whom are landlords, called for changes.

They raised concerns the legislation would see more landlords sell up, reducing the number of rental properties available.

In a letter to Tory MPs, Levelling Up Minister Jacob Young said he had listened to concerns from MPs and the sector, and the government would bring forward changes when the draft legislation returns to the House of Commons after the Easter break.

He said the bill “must strike the balance between delivering security for tenants and fairness for landlords”.

The proposals would prevent tenants from ending a rental contract in the first six months. Currently the bill allows renters to end a tenancy with two months’ notice at any point.

Mr Young said the change would ensure landlords could rely on a letting period that covers the cost of finding tenants and making repairs between tenancies, as well as preventing tenants using rented properties as short-term lets.

He added that the government was considering exemptions, such as the death of a tenant, domestic abuse or significant hazards in the property.

However, housing charity Shelter said the move could “trap renters in hellish conditions”.

Other proposed changes include:

Polly Neate, chief executive of Shelter, described the changes as “cowardly” and said the government would “rather betray renters than stand up to a minority of MPs hell-bent on browbeating them into watering down the Renters (Reform) Bill”.

Tom Darling, campaign manager at the Renters’ Reform Coalition, said delaying the ban on no-fault evictions for existing tenancies meant most renters would not be impacted until after the next general election.

“The government’s flagship legislation to help renters is fast becoming a Landlord’s Charter,” he said.

Without significant changes he said the legislation “will hardly be an improvement on the status quo, and in some case it will make things worse”.

Ben Beadle, chief executive of the National Residential Landlords Association, said ministers now needed to “crack on” and pass the bill.

“Our focus has been on ensuring that the replacement system works, and is fair, to both tenants and responsible landlords. The changes being proposed would achieve this balance,” he said.

However, one of the leading Tory MP with concerns about the bill’s impact on landlords, Anthony Mangnall, said he would still press for further changes.

He told the BBC he was “pleased with the progress” but “there are still some outstanding issues such as fixed-term contracts”.

Currently, the bill would abolish fixed-term contracts and replace them with rolling tenancies with no fixed end date. The government says this gives tenants greater security but critics argue it means less certainty for landlords.

Housing Secretary Michael Gove has promised no-fault evictions will be outlawed in England by the next general election, which must take place by the end of January.

However, the government has already said the ban on no-fault evictions will not be enacted until improvements are made to the court system.

MPs have warned getting rid of no-fault evictions will increase pressure on the courts, as landlords will need to go through a legal process to regain possession of their properties when they have legitimate grounds to do so.

Labour said it would immediately abolish no-fault evictions if it won power.

Shadow housing minister Matthew Pennycook said: “After years of delay, private renters have every right to be furious at the watering down of the vital protections the Tories promised them.”

The Liberal Democrats accused Mr Gove of caving in to Conservative MPs and leaving the party’s 2019 manifesto promise to ban no-fault evictions “in tatters”.