News15.12.23by Alex DanielThe government’s rental reforms are set to fail unless it provides “substantial” funding to address the dire financial situation facing many local councils, a group of MPs has warned.MPs have been warned that additional funding is needed to deliver on its rental reforms (picture: Hiran Perera)SharelinesThe government’s rental reforms are set to fail unless it provides “substantial” funding to address the dire financial situation facing many local councils #UKhousing The All-Party Parliamentary Group (APPG) for the private rented sector (PRS) said local authorities will struggle to enforce new rules because of the current squeeze on their budgets.
Proposed reforms under the bill include a new Decent Homes Standard for the PRS, a property portal for rental housing and the end of ‘no-fault’ evictions.
But the cross-party group of MPs and peers is concerned that local authorities need more cash to make the new rules happen. Nearly one in five councils across England are at risk of declaring de facto bankruptcy this year or next, according to a Local Government Association survey.
One area of concern is around contested possession hearings, which would likely become more common if Section 21 evictions are banned.
The Law Society warned in its evidence to the APPG that the reforms will be “in vain” without greater investment in legal aid.
It told MPs that the courts are “vastly overstretched: possession claims and the eviction process can take many months, sometimes more”.
And 42% of people in England and Wales have no access to a legal aid provider in their area with sufficient expertise in housing law, it added.
Meanwhile, MPs also flagged warnings from the Chartered Institute for Environmental Health that there are not enough environmental health officers (EHOs) to go around.
In its evidence, it said the current EHO staff numbers are “not sufficient to deal with the existing numbers of tenant complaints”, citing data showing that for every 10,000 private rented homes there were less than three EHOs. Andrew Lewer, chair of the APPG, said: “It is vital that the bill provides security to tenants, gives confidence to responsible landlords and roots out rogue and criminal landlords providing substandard housing. However, none of this will be possible without robust enforcement of the powers being proposed.
“The government needs to provide substantial multi-year funding to ensure councils have the resources they need to enforce the planned Decent Homes Standard and ensure all rented homes are safe and secure.
“Likewise, tenants and landlords need to be confident that they will be able to enforce their rights in court in a timely and effective way when Section 21 ends. It is simply unacceptable that ministers have provided scant detail about what improvements to the justice system will look like and when they will happen.”
In response, a government spokesperson said: “We are absolutely committed to abolishing Section 21 no-fault evictions as part of our long-term plan for housing.
“The Renters’ Reform Bill will deliver the biggest change to the private rented sector in over 30 years, ensuring a fairer deal for tenants and landlords.
“We are committed to introducing reforms in a way that both protects tenants’ security and retains landlords’ confidence in the new system.”
When the Renters’ Reform Bill began its journey through parliament in October, the government confirmed that it will not introduce the abolition of Section 21 until stronger possession grounds and a new court process is in place.
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