Industry News


No fault evictions to be outlawed at last


Private rents forecast to climb by as much as £1,500 in next year


In just 12 months time the average private sector tenant could be paying between £800 and £1,500 more a year in rent, according to research by a rental platform specialising in affordable homes. Following a turbulent 24 months, the UK


rental market is ‘back on track’ and analysis of rental market values by Ocasa shows that the average UK tenant is now paying £12,936 per year for a rental property. Tis annual cost of renting has already


T


he long-term promise to remove Section 21 ‘no-fault’ evictions from the country’s private rented sector is finally to become a


reality aſter it was included within the Government’s new legislative programme. Te procedure allows landlords to evict tenants


without giving a reason and there is no right of appeal for tenants. It has proved extremely contentious in recent years with tenants and campaign groups critical of the threat and uncertainty it carries. It has also contributed heavily to increases in homelessness. In an effort to appease private landlords,


Government ministers say it will be replaced with new stronger possession grounds for tackling incidences of anti-social behaviour or repeated incidences of rent arrears. Details of the replacement system are expected to be announced in the summer when the Government publishes its Renters’ Reform Bill. Te Bill’s inclusion within the Queen’s Speech


drew a positive reaction from all sides of the sector, with the Government keen to focus on additional rights for tenants in terms of greater security, as well as being empowered to challenge poor practices and unfair rent increases. Other aspects it will include are making the


Decent Homes Standard apply to private rentals (in a bid to improve property standards) and introducing a new Ombudsman to resolve issues between private landlords and tenants without them having to go to court. A new property portal will also be introduced,


where landlords can access information about their obligations and tenants can get performance information that will help them hold their landlord to account.


A WELCOME CHANGE Responding to the Queen’s Speech, Councillor Darren Rodwell, housing spokesperson for the


Local Government Association, said: “We are pleased that the Government has committed to introducing legislation to strengthen protections for private renters and abolish ‘no-fault evictions’. Tis is something the LGA and councils have been calling for the Government to introduce since it was included in its 2019 manifesto. “A dramatic recent rise in the number of ‘no fault


evictions’ from the private rented sector is putting additional pressure on homelessness services, so we are glad that a plan to strengthen safeguards for private renters is finally in place, allowing renters to challenge poor practice and unfair rent increases without fear of eviction.” National Residential Landlords Association chief


executive Ben Beadle welcomed the Government’s commitment to tackling arrears and anti-social behaviour and will continue to lobby Ministers to ensure other grounds for possessions are fair. He said: “We welcome the Government’s


acceptance that reforms to the rented sector need to strengthen the ability of landlords to tackle anti-social tenants and those with repeated rent arrears. We will continue to work to ensure that these and other grounds for possession are fair and workable. “While we support proposals for an Ombudsman


to cut the number of possession cases needing to go the court, this cannot be a substitute for proper court reform as well. At present it can take almost a year for a private landlord to repossess a property through the courts where they have a legitimate reason to do so. Tis is simply not good enough.” Mr Beadle added that landlords need to be able


to regain possession of their property efficiently when needed. “We know landlords want to keep good tenants in their homes, but should they wish to, for example, sell up, or move into the property themselves the mechanisms need to be in place to allow them to do this. We will continue to campaign to this end.”


climbed by £1,032 since this time last year and Ocasa predicts that it could increase by a further £803 over the next 12 months. Tis means the average tenant would be required to pay £13,739 a year to rent a home. London remains by far the least


affordable region of the UK rental market, with the average tenant in the capital currently paying £21,140 per year. Ocasa estimates that the capital’s tenants will see this cost increase by a further £1,140 per year over the next 12 months. While London’s renters are paying the


highest price to rent, it is those in the North West that could see the sharpest increase with their average rent of £10,452 per year predicted to increase by £1,504 over the next year. Te East of England could be set to see the


third largest hike in the annual cost of renting, climbing by a further £898 to a total of £13,426 per year. In the South West, this increase in annual rental costs is estimated to hit £790, while Ocasa also estimates that renters in the South East (£750) and East Midlands (£717) will be required to pay over £700 more a year in rent. Renters in the North East stand to see the


lowest increase in the cost of renting, Ocasa predicts that the average annual cost of renting in the region could still climb by £617 in just 12 months’ time. A spokesperson for Ocasa said: “Despite a


rather unsettled rental market landscape as a result of the pandemic, the average UK tenant is still paying over a thousand pounds more a year versus just 12 months ago. Tis cost is set to climb even further over the next 12 months and will be particularly concerning for existing tenants. “Renting is already the most substantial


outgoing they face but in recent weeks, many will have also seen their finances squeezed by the increasing cost of living. When you add an increase in rental costs to this mix, it paints a very bleak picture for the year ahead.”


www.housingmmonline.co.uk | HMMJune/July 2022 | 5


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