Government unveils ‘once-in-a-generation’ renting shake-up – including ban on ‘no-fault’ evictions
Plans to scrap “no-fault” evictions will be unveiled by the government today.
The Renters’ (Reform) Bill will be published later – three-and-a-half years after the government was elected with a manifesto promise to stop the practice.
No-fault – or Section 21 – evictions allow landlords to take back possession from tenants without giving a reason.
Please use Chrome browser for a more accessible video player
The unfair reality of no-fault evictions
Housing Secretary Michael Gove said a new ombudsman will be set up to oversee dispute resolutions.
As well as ending no-fault evictions, the bill will seek to give people the legal right to request having a pet in their home. Landlords will have to consider these requests, and won’t be able to unreasonably refuse.
Mr Gove said: “Too many renters are living in damp, unsafe, cold homes, powerless to put things right, and with the threat of sudden eviction hanging over them.
“This government is determined to tackle these injustices by offering a new deal to those living in the private rented sector; one with quality, affordability and fairness at its heart.”
The plans will impact 11 million tenants and two million landlords, according to the Department for Levelling Up, Housing and Communities.
Read more:
No-fault evictions driving up homelessness rates
Every seven minutes a private renter gets eviction notice
The government says landlords will also be able to evict anti-social tenants with greater ease, with reduced notice periods for “irresponsible” renters.
Other measures in the bill include plans to make it illegal for landlords and agents to impose blanket bans on benefits claimants or families with children.
It will also apply home quality standards to the private sector for the first time.
Some campaigners have described the bill as a “once-in-a-generation” announcement – although there are warnings some property owners will still find ways to skirt the laws, such as by using large rent hikes to force unwanted tenants out.
Dan Wilson Craw, acting director of campaign group Generation Rent, said: “Abolishing [no-fault evictions] will take away much of the stress of renting and improve communication and trust between tenants and landlords.”
But Siobhan Donnachie, spokeswoman for the London Renters Union, branded the bill “long overdue” and said “inflation-busting rent” will mean renters will still feel insecure.
She warned: “For the many families struggling with housing costs at the moment, a 20% rent hike is simply a no-fault eviction under a different name.
“If the government is serious about bringing renters security in our homes, it must recognise how insecure renters feel speaking out against unsafe housing or planning for the future with the threat of inflation-busting rent increases hanging over our heads.”
Battersea Cats and Dogs Home believes the proposed law will significantly reduce the number of animals being “needlessly separated from owners” – and could allow millions of renters to enjoy pet ownership in the future.
And Owen Sharp, chief executive of Dogs Trust, said the reforms are a “potential gamechanger” for responsible dog owners who rent.
Lisa Nandy, the shadow housing secretary, said Labour would go further, with plans to introduce “a four-month notice period for landlords, a national register of landlords, and a host of new rights for tenants – including the right to make alterations to your home, to request speedy repairs, and to have pets”.
Rachel Reeves has been urged by a think tank to cut national insurance and increase income tax to create a “level playing field” and protect workers’ pay.
The Resolution Foundation said the chancellor should send a “decisive signal” that she will make “tough decisions” on tax.
Ms Reeves is expected to outline significant tax rises in the upcoming budget in November.
The Resolution Foundation has suggested these changes should include a 2p cut to national insurance as well as a 2p rise in income tax, which Adam Corlett, its principal economist, said “should form part of wider efforts to level the playing field on tax”.
The think tank, which used to be headed by Torsten Bell, a Labour MP who is now a key aide to Ms Reeves and a pensions minister, said the move would help to address “unfairness” in the tax system.
As more people pay income tax than national insurance, including pensioners and landlords, the think tank estimates the switch would go some way in raising the £20bn in tax it thinks would be needed by 2029/2030 to offset increased borrowing costs, flat growth and new spending commitments. Other estimates go as high as £51bn.
Torsten Bell appearing on Sky News
‘Significant tax rises needed’
Another proposal by the think tank would see a gradual lowering of the threshold at which businesses pay VAT from £90,000 to £30,000, as this would help “promote fair competition” and raise £2bn by the end of the decade.
The Resolution Foundation also recommends increasing the tax on dividends, addressing a “worrying” growth in unpaid corporation tax from small businesses, applying a carbon charge to long-haul flights and shipping, and expanding taxation of sugar and salt.
“Policy U-turns, higher borrowing costs and lower productivity growth mean that the chancellor will need to act to avoid borrowing costs rising even further this autumn,” Mr Corlett said.
“Significant tax rises will be needed for the chancellor to send a clear signal that the UK’s public finances are under control.”
He added that while any tax rises are “likely to be painful”, Ms Reeves should do “all she can to avoid loading further pain onto workers’ pay packets”.
The government has repeatedly insisted it will keep its manifesto promise not to raise income tax, national insurance or VAT.
A Treasury spokesperson said in response to the think tank report it does “not comment on speculation around future changes to tax policy”.
Please use Chrome browser for a more accessible video player
Is Britain heading towards a new financial crisis?
Chancellor urged to freeze alcohol duty
Meanwhile, Ms Reeves has been urged to freeze alcohol duty in the upcoming budget and not increase the rate of excise tax on alcohol until the end of the current parliament.
The Scotch Whisky Association (SWA), UK Spirits Alliance, Welsh Whisky Association, English Whisky Guild and Drinks Ireland said in an open letter that the current regime was “unfair” and has put a “strain” on members who are “struggling”.
The bodies are also urging Ms Reeves “to ensure there will be no further widening of the tax differential between spirits and other alcohol categories”.
A Treasury spokesperson said there will be no export duty, lower licensing fees, reduced tariffs, and a cap on corporation tax to make it easier for British distilleries to thrive.
Leave retailers alone, Reeves told
This comes as the British Retail Consortium (BRC) warned that food inflation will rise and remain above 5% into next year if the retail industry is hit by further tax rises in the November budget.
The BRC voiced concerns that around 4,000 large shops could experience a rise in their business rates if they are included in the government’s new surtax for properties with a rateable value – an estimation of how much it would cost to rent a property for a year – over £500,000, and this could lead to price rises for consumers.
Read more:
Food inflation at 18-month high
‘Stealth’ and ‘sin’ taxes expected to rise
Firms cut jobs at fastest pace since 2021
Latest ONS figures put food inflation at 4.9%, the highest level since 2022/2023.
The Bank of England left the interest rate unchanged last week amid fears that rising food prices were putting mounting pressure on headline inflation.
“The biggest risk to food prices would be to include large shops – including supermarkets – in the new surtax on large properties,” BRC chief executive Helen Dickinson said.
She added: “Removing all shops from the surtax can be done without any cost to the taxpayer, and would demonstrate the chancellor’s commitment to bring down inflation.”
Donald Trump has revealed that media mogul Rupert Murdoch and his son Lachlan could be part of a deal in which TikTok in the United States will come under American control.
The US president also namedropped Michael Dell, the founder and CEO of Dell Technologies, as a possible participant in the deal during an interview with Fox News, which is owned by the Murdochs.
“I think they’re going to be in the group. A couple of others. Really great people, very prominent people,” Mr Trump said. “And they’re also American patriots, you know, they love this country. I think they’re going to do a really good job.”
Mr Trump said that Larry Ellison, founder and CEO of software firm Oracle, was part of the same group. His involvement in the potential TikTok deal had previously been revealed.
President Donald Trump speaking to reporters outside the White House. Pic: AP/Mark Schiefelbein
White House press secretary Karoline Leavitt said on Saturday that Oracle would be responsible for the app’s data and security, with Americans set to control six of the seven seats for a planned TikTok board.
This comes after Mr Trump said he and China’s Xi Jinping held a “very productive call” on Friday, discussing the final approval for the TikTok deal, much of which is still unknown.
Once confirmed, the deal should stop TikTok from being banned in the US after lawmakers decided it posed a security risk to citizens’ data.
Officials warned that the algorithm TikTok uses is vulnerable to manipulation by Chinese authorities, who can use it to push specific content on the social media platform in a way that is difficult to detect.
Congress had ordered the app shut down for American users by January 2025 if its Chinese owner ByteDance didn’t sell its assets in the country – but the ban has been delayed four times by President Trump.
Read more from Sky News:
Trump delivers speech at Charlie Kirk’s memorial
Pentagon orders journalists to agree to reporting rules
Mr Trump said on Sunday that he might be “a little prejudiced” about TikTok, after telling reporters on Friday: “I wasn’t a fan of TikTok and then I got to use it and then I became a fan and it helped me win an election in a landslide.”
After the call with Mr Xi, Mr Trump said in a Truth Social post: “We made progress on many very important issues, including Trade, Fentanyl, the need to bring the War between Russia and Ukraine to an end, and the approval of the TikTok Deal.”
Mr Trump later told reporters at the White House that Xi had approved the deal, but said it still needed to be signed.
Representatives for the Murdochs, Mr Dell and Mr Ellison have not yet commented on a potential TikTok deal.
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoButton battles heat exhaustion in NASCAR debut
-
Sports3 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment12 months agoHere are the best electric bikes you can buy at every price level in October 2024