The scrapping of Section 21 and other provisions expected in the government’s White Paper on rental reform have been delayed until next year - and that’s the right thing to do, say letting agents.
Proposals for a Renters' Reform Bill was first announced in December 2019 but the idea has since shifted to a White Paper expected pushed back until 2022.
While a cause for uncertainty for the private rented sector, ARLA Propertymark has welcomed the latest delay and believes it was always too big a job to try to squeeze wholesale reforms into two years.
The trade body hopes the delay will now help the government follow through on its pledge for “a package of reforms that creates a fair private rented sector that work works for both tenants and landlords” as well as reflecting changes and challenges during the pandemic.
Propertymark says it’s concerned about the impact on scrapping Section 21 eviction powers on current and future landlords in the sector and the consequential effect of raising rents, all without a meaningful plan to boost the social housing supply.
Timothy Douglas, policy and campaigns manager at the organisation, says a delay is not a surprise given the scale of the proposed reforms and other issues in the inbox of new Housing Secretary Michael Gove.
“Due to the significance of the proposals, it is only right that the government do not rush into making large-scale reforms to the private rented sector in England without taking the time to develop them properly” explains Douglas.
“There are six consultations impacting on the sector that are currently awaiting a response from the UK Government and we are yet to see the Secretary of State set out a full list of priorities. Furthermore, there has been no response from the Department for Levelling Up, Housing and Communities to the recommendations in the RoPA working group report.
“The pandemic has also introduced new challenges that must be considered, shining the spotlight on notice periods and heightening the need to improve efficiencies to the possession process in the courts in addition to finding solutions to improve affordability, supply and supporting landlords and letting agents who have worked hard to sustain tenancies throughout the pandemic.
“Time will tell whether the government can achieve what it wants or whether the goalposts have shifted. Rumours of a General Election in 2023 means the pressure is on to develop and deliver these reforms.
“Propertymark remains committed to representing its members and shaping the future of renting, so we get regulation of letting agents and we fill gaps in redress extending the requirements to landlords who fully manage property only.
“We also think a system of all mandatory grounds should be adopted to effectively compensate for the removal of Section 21 and technological solutions need to be found to digitise possession claims as well as acknowledging that early-stage conciliation and mediation have a role to play to play in disputes and possession proceedings.”
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