Renters Rights Bill: Grainger Plc Welcomes New Standards

Grainger plc, the UK’s largest residential landlord, has strongly supported the Labour Party’s Renters Rights Bill. The company believes the proposed legislation will lead to significant improvements in the rental market, benefiting both tenants and responsible landlords alike.

In a statement released to its shareholders via the London Stock Exchange, Grainger highlighted its long-standing commitment to improving rental standards. The company said, “As the country’s leading responsible landlord, Grainger has been calling for and championing better rental standards for renters for many years.”

The statement emphasised that many of the Bill’s proposals align with Grainger’s practices. These include providing high-quality, energy-efficient homes for diverse households. The company also reaffirmed its support for the abolition of ‘No Fault’ evictions, known as Section 21 evictions, a key aspect of the proposed legislation. “Grainger has long supported the abolition of ‘No Fault’ evictions. Under the proposals, landlords will continue to be able to address cases of unpaid rent or anti-social behaviour,” the company added.

Grainger’s Role in Shaping the Renters’ Rights Bill

Grainger has actively shaped the Renters’ Rights Bill by offering its expertise to help draft the legislation. The company took part in discussions around the ‘A Fairer Private Rented Sector’ White Paper, which was published in 2022.

In their statement, Grainger claimed, “We have been heavily involved in helping to inform the draft legislation, having first made representations during the consultation on the ‘A Fairer Private Rented Sector’ White Paper in 2022. We look forward to continuing to use our expertise to shape the final legislation.”

The company’s role in influencing the Bill highlights the need for government and sector collaboration. This ensures new laws benefit both tenants and landlords.

Key Provisions of the Renters’ Rights Bill

The Renters’ Rights Bill, which is backed by the government, seeks to address several issues within the private rental sector, aiming to provide better protection for tenants and clearer guidelines for landlords. Below are some of the key elements of the proposed legislation.

Abolishing Section 21 Evictions

One of the most significant aspects of the Bill is the abolition of Section 21 evictions, often referred to as ‘No Fault’ evictions. This change will transition all assured tenancies into periodic tenancies, giving tenants greater security. The Bill introduces a simpler tenancy structure, ensuring tenants no longer fear sudden evictions. Moreover, it empowers tenants to challenge poor practices and unfair rent increases.

The Bill also ensures that landlords can still reclaim their properties in reasonable situations, such as non-payment of rent or cases of anti-social behaviour. Tenants will receive more time to find alternative accommodation. This balance allows landlords to sell or move into the property.

Stronger Protection Against Backdoor Evictions

The Renters’ Rights Bill introduces stronger measures to prevent ‘backdoor evictions’. Consequently, landlords cannot raise rents above market levels to force tenants out. Tenants will have the right to challenge excessive rent increases through an independent tribunal if they believe the increase is unfair.

At the same time, landlords will still be permitted to increase rents to match market rates. However, if there is a dispute, a tribunal will step in to assess the fairness of the rent increase, offering tenants greater protection from exploitation.

Establishing a Private Rented Sector Ombudsman

The Bill will introduce a new Private Rented Sector Landlord Ombudsman. This body will provide a fair, impartial, and binding resolution for complaints from tenants regarding their landlords. The ombudsman mirrors existing redress systems in social housing and property agent services. Additionally, it brings the private rental sector in line with these standards.

The ombudsman will offer tenants a straightforward, accessible way to resolve disputes, helping to address issues without the need for lengthy legal processes.

Creating a Landlord Database

The government also aims to create a Private Rented Sector Database, which will provide essential information for both tenants and landlords. For landlords, the database will help ensure they are aware of their legal obligations and in compliance with the law. For tenants, the database will offer more transparency, allowing them to make informed decisions when entering into tenancy agreements.

Additionally, the database will support local authorities in their enforcement activities by targeting landlords who fail to meet legal standards. Landlords must register in the database to use specific possession grounds.

Tenant Rights and Protections

The Renters’ Rights Bill introduces several new protections for tenants and ensures landlords and agents treat them fairly.

Right to Keep Pets

One of the more notable provisions of the Bill is the strengthened right for tenants to request a pet. Landlords will be required to consider these requests and will not be able to refuse them unreasonably. Landlords can ask tenants to obtain pet insurance to cover potential damage caused by pets. Additionally, this addresses any concerns landlords may have.

Applying the Decent Homes Standard

The Bill will also extend the Decent Homes Standard to the private rented sector, ensuring that renters live in safe and well-maintained properties. This move aims to eliminate substandard rental homes and improve the quality of life for tenants across the country.

Awaab’s Law

Following the tragic death of Awaab Ishak, the government is introducing ‘Awaab’s Law’ to the private rented sector. This will set clear legal timeframes for landlords to address serious hazards in their properties. Consequently, tenants will avoid unsafe living conditions.

Fair Treatment for Tenants on Benefits or with Children

The Bill seeks to make it illegal for landlords and agents to discriminate against potential tenants who receive benefits or have children. This provision ensures that landlords treat all tenants equally when they search for a rental property, regardless of financial situation or family status.

Banning Rental Bidding

Another significant change proposed by the Bill is the prohibition of rental bidding. We will outlaw the practice where landlords or agents ask for or accept offers above the advertised rent. Instead, landlords will be required to publish an asking rent, and it will be illegal to accept offers that exceed this figure. This move aims to make the rental market fairer and more transparent for tenants.

Strengthening Local Authority Enforcement

To support the enforcement of these new regulations, the Bill introduces measures to enhance local authorities’ powers. This includes expanding civil penalties and providing councils with a package of investigatory tools to help them crack down on rogue landlords. In addition, local authorities will be required to report on their enforcement activity, ensuring greater accountability and transparency.

Conclusion

Grainger plc’s endorsement of the Renters’ Rights Bill reflects a broader trend towards improving standards in the UK’s rental sector. The Bill abolishes Section 21 evictions and strengthens tenant protections. Additionally, it ensures landlords meet their obligations, creating a fairer system.

As the Bill progresses through Parliament, Grainger and other responsible landlords will continue to play a vital role in shaping its final form. Their input will ensure the legislation benefits both tenants and landlords. Furthermore, it will create a more equitable, sustainable rental market.