I was interested to read on Property118, an article stating that the Renters Rights Bill is not about tenants but creating a ‘council cash windfall’.
That’s right in a way, but it’s a very landlord-centric way of looking at things.
The problem for local authorities right now
It’s well known that many, if not all, Local Authorities are finding it difficult. They have suffered massive reductions in their income through austerity, which have not yet been made up.
Further, they are suffering further financial losses by having to provide housing for all who are evicted who come within the definition of ‘priority need’.
This includes all tenants with children (or where the applicant is pregnant) who have been evicted under the no-fault section 21 procedure – however appalling their behaviour.
Indeed, this is one of the reasons why landlords use this procedure – because it means that the Council will have to find these tenants somewhere to live once the possession order has been made and (in most cases) a bailiff eviction date has been set.
In their current cash-strapped state, Councils are in the difficult position of being unable to avoid this but at the same time being unable to afford it.
The result is several councils serving section 114 notices (which is the Local Authority equivalent of being bankrupt) with many more on the brink.
Let us remind ourselves why we need Councils to be solvent:
- They provide rubbish collection/waste management services
- They provide (or are supposed to provide) social care
- They provide state schools and often also higher education institutions
- They provide leisure and cultural services (including youth clubs for young people most of which have sadly been shut down due to funding issues)
- They monitor environmental health, regulate pollution and ensure compliance with environmental regulations
- They are responsible for dealing with emergencies such as flooding, terrorist attacks and other disasters
- They provide support services for businesses
- They are responsible for improving public health
These are all massively important services that affect the lives of everyone living in their area.
Is it right that they should be put at risk by having to rehouse tenants, many of whom are being evicted for wholly legitimate reasons, which are hidden behind the ‘no fault’ eviction procedure?
In his talk to our Renters Rights Bill Conference (see the extract here) Justin Bates KC pointed out that in 2022-23, Councils spent over 1 billion pounds on temporary accommodation for homeless people. This is a huge amount of money which councils simply cannot afford long-term.
Something had to be done.
What the Renters Rights Bill will aim to do
The abolition of the no-fault section 21 evictions
This will mean that in all cases of tenant eviction, the reason why the tenants are being evicted can be seen.
- If they are being evicted through no fault of their own, then their rehousing entitlement will continue. For example, if their landlord wants the property back to sell or live in themselves – both of which will be grounds for eviction under the new law.
- If however, they are being evicted because of their poor behaviour, then I suspect that the many families patiently waiting on the local authority housing waiting list will agree that it is unfair that they should ‘jump the queue’.
The increase in Local Authority enforcement powers
There are two main reasons why people have to suffer sub standard housing:
- The fact that they can be evicted without cause under the no fault section 21 eviction procedure if they try to enforce their rights (this is known as retaliatory eviction)
- The fact that Local Authorities have signally failed to do proper enforcement work.
The first items will, the government hopes, be at least partly resolved by the abolition of section 21 and the building of new homes.
The second item will, they hope, be resolved by the enhanced powers for Local Authorities under the Renters Rights Bill.
There are a number of parts to this:
Making it mandatory for Local Authorities to enforce the legislation in their area.
At present, this is not the case, allowing Local Authorities to save money by doing no enforcement work – which at the moment mostly involves bringing costly prosecutions in the Magistrates Courts.
Expanding the number of offences for which they can serve Civil Penalty Notices.
In most cases, the fine can be up to £7,000 but for some more serious offences, it can be up to £40,000.
The CPN procedure is better for Local Authorities as it is quicker and involves less bureaucracy, plus they can keep the fine money. Fines imposed in Magistrates’ Courts go to central funds.
Improving their investigatory powers
Rogue and criminal landlords are adept at confusing the issue and evading enforcement action (see more here). These new powers will make it easier for Local Authorities to take action.
And finally
The Property118 article gives the impression that Councils are wealthy organisations, intent on racking up more wealth by unfair imposition of penalties on hapless landlords. I’m sure many Council employees will ‘roll on the floor laughing’ at this.
In fact, many Local Authorities are on the point of bankruptcy and are unable to carry out their functions due to lack of funds.
The damage done to society by rogue and criminal landlords is inculcable. Poor conditions in housing increase sickness, which increases the costs to the National Health Service, which we all pay for through our taxes.
It also has a serious effect on children and their education – which again affects us all as our children are our future.
Surely it is only fair that those who transgress the regulations should pay for any enforcement action that is brought against them?
The Renters’ Rights Bill may not be perfect, and there are certainly some aspects which could do with revision.
However, I think it is laudable that a serious attempt is being made to help Local Authorities carry out their enforcement duties.
If you are a landlord worried about all this
Remember that 100% compliance with the rules will give you 100% protection. Good landlords should have nothing to fear.
But you will need to take the trouble to learn about the new regime and take steps to comply with it. My Landlord Law service can help with this.
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