‘No fault’ evictions to be abolished in England in renters’ rights reform

The proposed legislation is aimed at providing greater protections and security to renters and overhauling the private rented sector. The wide-ranging reforms set out in the Bill will not only introduce a ban on section 21 evictions, known as ‘no-fault’ evictions, but will also extend ‘Awaab’s Law’ that sets timescales for repairs to private rented sector properties, and end blanket bans on renting to those on benefits or with children, among other measures.

A ban on no-fault evictions – which allow landlords to terminate tenancies without giving any reason – would instead require a landlord to seek possession of a rental property relying on a section 8 notice, which must include a valid reason that is among the permitted grounds for possession under the law as set out in the relevant section of the 1988 Housing Act. The Bill is set to increase these grounds for possession while imposing a ban on no-fault evictions at the same time.

The government said that banning section 21 evictions will reassure tenants they can challenge bad practice without the fear of retaliatory eviction, as landlords will need to provide a valid cause to end a tenancy.

Ian Morgan, property dispute resolution expert at Pinsent Masons, said the first reading of the Renters’ Rights Bill represents an important new chapter in the ongoing journey that is leasehold reform, but that there would be a balance to strike for the new government in its private rented sector reform, which was a key manifesto promise of the Labour party ahead of this summer’s general election.

“It will be interesting to see the balancing act that is finally struck between reducing the harm to the sector caused by the small minority of unscrupulous landlords who can make private tenants’ lives very difficult; and ensuring that there are not undue barriers to investment caused by some of the wider outworkings of the Bill which could in turn lead to an unintended worsening of the housing supply situation in England,” he said.

In addition to the no-fault evictions ban and new grounds for possession, the Bill proposes to create a new ombudsman for quicker and cheaper resolution of disputes, reducing the need for landlords and tenants to go to court.

The previous government tried to introduce similar changes, including banning no-fault evictions, but its Renters (Reform) Bill was delayed because, it said, improvements needed to be made first to the County Court system to accommodate the ban and other changes.

It is important to have a speedy and accessible ‘first instance’ dispute resolution mechanism to ensure the reform can achieve its intended goals, said Morgan, “and the industry will watch this space with interest to see the extent to which the government is able to achieve this”.

Other important changes that will have an impact on landlords include a tenant right to challenge rent increases; a ban on rental ‘bidding wars’; a requirement for landlords to apply a new ‘Decent Homes Standard’ to ensure homes are safe, secure and hazard free for renters; and the extension of Awaab’s Law to the private sector. These provisions, introduced for social housing in 2023, set out the timeframes within which landlords must carry out repairs upon receiving a complaint of serious hazards. The Bill will also make it unlawful for landlords to discriminate against tenants in receipt of benefits or with children, and establish a digital database for the private rented sector to assist tenants and landlords with key information.

According to Morgan, the Bill is “only one piece in a wider package of reforms to residential and commercial property law that have been earmarked for this parliament”. The Leasehold and Freehold Reform Act 2024, passed during ‘wash up’ on the last day of the former parliament under the previous government, still requires many provisions to be activated, and the Law Commission is expected to publish in the coming months a consultation paper on reforms to the Landlord and Tenant Act 1954, a key piece of legislation affecting business lease renewals in England and Wales. In addition, there are also wider reforms to planning law.

“Legislation is only one piece of the jigsaw and it is how all of these different strands come together, including ensuring that all concerned have sufficient access to justice, that will be a key component in successful delivery,” said Morgan.

The Renters’ Rights Bill will be debated in the House of Commons when it returns for its second reading.