By Bay Estate Agents
Yesterday's Queen’s Speech confirmed that the Government will bring forward “new measures to protect tenants”.
The Queen’s Speech has confirmed that the Government will bring forward “new measures to protect tenants”. While not going into any details, this will include a new Renters Reform Bill which will be introduced to protect tenants. This will remove Section 21 from the Housing Act while “strengthening the rights of landlords who need to gain possession of their property when they have a valid reason to do so”.
Implementation of Section 21 removal is likely two years away and there is much to do before then as the only other avenue to repossession is the Section 8 - a process which often takes more than six months to conclude with court involvement.
David Cox, CEO of ARLA Propertymark, said: “In the absence of any meaningful plan to boost the level of social housing in this country, the announcement confirming the abolition of Section 21 in today’s Queens speech is another attack against the landlords who actually house the nation. If Section 21 is scrapped, Section 8 must be reformed and a new specialist housing tribunal created. Without this, supply will almost certainly fall which will have the consequential effect of raising rents and will further discourage new landlords from investing in the sector. ARLA Propertymark will be engaging with the Government to ensure they fully understand the consequences of any changes, and we will be scrutinising the legislation, to ensure landlords have the ability to regain their properties if needed.”
The Renting Homes Act in Wales is still awaiting implementation and at present, it is believed at present that Wales will look to extend the Section 21 notice period to six months rather than abolish entirely but this could change.
The new Bill will also introduce a new lifetime deposit “so that tenants don’t need to save for a new deposit every time they move house”.
There will also be a consultation on “First Homes” – making houses available at a discount “of at least 30%” to local people and key workers.
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