Ben Goldstone, Croydon and Sutton Socialist Party
The Renters’ Rights Bill, initially proposed by the Tories back in 2019, now called the Renters (Reform) Bill, is back in the House of Commons. This time, alongside banning Section 21 evictions, Labour claim that several measures in it will “decisively level the playing field between the landlords and tenants”. But, with people paying through the nose for sub-standard and dangerous housing, will it solve the housing crisis?
This bill includes a ban on Section 21 ‘no-fault’ evictions where landlords could evict tenants with two months’ notice without reason, which will apply to both new and existing tenancies. Landlords will have to use other measures to kick tenants out.
Awaab’s Law will be extended. This law, named after the toddler who tragically died following exposure to mould in his family’s socially rented home in Rochdale, initially said that landlords would have to investigate hazards within 14 days, fix them within seven, and enact emergency repairs within 24 hours. Labour has extended this law to cover privately rented homes too. But now these timescales are up for consultation – big property businesses and social housing operators are likely trying to push these back.
A new ‘Private Rented Sector Ombudsman’ is to be introduced to help deal with complaints from tenants quickly, and there is to be a ban on mid-tenancy rent increases, meaning that landlords will only be able to raise rents once a year at market rates.
Bidding wars between potential tenants are to be eliminated, as landlords will be banned from asking for, encouraging, or accepting any bids above the original price. However, landlords already plan to get around this – advertising a high monthly rent and encouraging people to make offers ‘below’ this!
The Bill will take away fixed-term assured tenancies. Instead, all tenancies will be periodic, meaning the tenant can stay in their home until they decide to end the lease by giving two months’ notice. However, tenants can still be given four months’ notice to end their tenancy if their landlord’s circumstances change.
End the housing crisis?
Renters, especially those who live in substandard accommodation, or those anxious that their tenancy will be terminated for no reason, will no doubt hope that these changes will help to end their housing misery. But Labour’s propositions do not go far enough.
Although the proposed changes will prohibit some abuses from landlords and letting agents, people are already spending too much on rent! A recent study by Shelter found that tenants in England are collectively paying an extra £473 million every month on rent this year, with each household on average paying an extra £103 per month compared to 2023.
We need councils to implement rent controls to limit what capitalist landlords can charge. With increasing numbers of people homeless or living in temporary accommodation, the bill also proposes nothing that will answer the current housing crisis.
Labour is relying on private developers to build more homes to help solve the housing crisis but, driven by profit, they cannot be relied upon to build the high-quality, affordable homes we need. Labour councils across the country could stand up for their residents facing homelessness, mould and slumlords and build council houses now. Then send the bill to the new Labour government.
The Socialist Party fights for privately owned large building companies, land banks, and estates to be nationalised to implement a mass building programme of affordable, quality and environmentally friendly council houses.
