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Labour has confirmed it will immediately ban Section 21 ‘no-fault’ evictions if it forms the next government, as part of plans to reform the private rented sector in England.
The reforms, announced on Thursday, also include introducing new legal protection for renters, putting an end to ‘rental bidding wars’ and bringing in a cap on the amount of rent requested upfront for rental properties.
The party said it will crack down on “unscrupulous landlords ripping off tenants with extortionate rents and lurid living conditions”.
Alongside the announcement, Labour provided new data that showed £750m per year was “draining from leaky homes” due to landlords failing to insulate them.
It comes after the Conservatives shelved the Renters (Reform) Bill ahead of the general election. The bill included plans to ban no-fault evictions, which were first announced by Theresa May six years ago when she was prime minister.
Campaigners said tenants were “let down” by a “failed government”.
As part of its reforms, Labour pledged to slash fuel poverty and cut energy bills, “saving the average tenant £250 per year” by requiring all landlords to meet stringent energy-efficiency standards by 2030.
The party said it will tackle respiratory and other health problems renters face, by stamping out black mould, damp and cold with new legal protections for tenants.
It will end rental bidding wars, “so landlords can no longer pit hopeful renters against each other in a fight to see who can offer up a bigger sum”.
Labour would also end “massive upfront payments” by capping the amount of rent requested upfront.
Angela Rayner, shadow housing secretary and deputy leader of the party, said “time and time again”, the Conservatives had “failed to stand up for renters”.
She said: “From endless delays to no-fault evictions, to failure to sort damp, cold and mouldy homes, the Conservatives are failing working people.
“Labour will call time on a decade of Tory vested interest and put renters first. An affordable, secure private rented sector is vital for economic growth, allowing young people to save for a mortgage with more money in their pockets to spend in the day-to-day economy.”
She said the “only real way” to make renting more affordable was to “build more homes”.
“That’s why we have a plan to build 1.5 million homes over five years as an antidote to Britain’s failing private rented sector,” Ms Rayner said.
Responding to the announcement, Francesca Albanese, executive director of policy and social change at Crisis, the homelessness charity, said the current situation facing renters was “dire”.
“It’s therefore welcome to see that all the major parties in England, including Labour, have committed to reforming renters’ rights.
“Labour’s plans to introduce an immediate ban on Section 21 ‘no-fault’ evictions – which are the leading cause of homelessness – would provide England’s 4.5 million renting households with much-needed security and, crucially, lead to fewer people being forced into homelessness,” Ms Albanese said.
She added: “Ultimately, whichever party makes up the next government must give renters the stability and security they need if we are to see a future free from homelessness.”
Paul Price, chief executive of the Association of Retained Council Housing, said the organisation “welcomes the announcement that if the Labour party forms the next government that it will put into effect the proposal put forward by Theresa May some six years ago to ban no-fault evictions”.
“ARCH’s members frequently have to pick up the pieces when families are forced out of their privately rented homes through no fault of their own.
“Whilst there are many factors which have seen council housing registers growing over recent years, stopping families seeking help from council’s by ending no-fault evictions will help to stop one of the many causal factors.
“ARCH hopes that any incoming government would also work with it and other housing organisations to start to address the crisis being faced within housing and the consequences this crisis is having on hard pressed families across the country,” he said.
Ben Twomey, chief executive of Generation Rent, the campaign group, said: “The Labour Party’s commitment to supporting renters is welcome. The process of reform cannot be held back by landlords’ vested interests any longer and the next government must stand up to people profiting from weak tenants’ rights.
“Banning Section 21 no-fault evictions was a promise by all major parties at the 2019 election, which the government failed to deliver, so we’re pleased Labour has committed to doing this immediately. Ending Section 21 will empower tenants to raise complaints when needed and protect families from homelessness.
“Too many of us are forced out of our homes by unaffordable rent rises, so any new protections must stop the free-for-all that allows landlords to push rents up faster than tenants’ wages.
“Labour has promised to enable tenants to challenge unreasonable rent increases, but in order to do so must go further to slam the brakes on soaring rents, limiting increases to the lower of wage growth or inflation.”
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