Government to introduce ‘hardship test’ before eviction - press report
In a move likely to reshape the landscape of private renting in the UK, the new Labour government is set to introduce so-called ‘hardship tests’ designed to make it significantly harder for landlords to evict tenants. This initiative, reported by The Daily Telegraph, could usher in a system similar to one used in France, potentially revolutionizing tenant protections in the UK.
The proposed hardship test would require landlords to demonstrate a genuine need for eviction before proceeding, especially for tenants who are struggling financially. This system is modeled after the French Right to Housing Act, which has been in place since 2008. Under this law, tenants facing eviction without alternative housing options can appeal the decision, providing them with additional protections and delaying their removal if suitable accommodations are not available.
Housing Minister Matthew Pennycook, who advocated for similar measures while in opposition, is reportedly championing this approach. During his tenure as shadow Housing Minister, Pennycook proposed amendments to the Renters Reform Bill to incorporate such a safeguard, although the proposal was rejected by the Conservative government at the time.
In addition to these hardship tests, the new Labour government plans to reinstate a policy requiring landlords to upgrade their properties to achieve a minimum Energy Performance Certificate (EPC) rating of C. This policy, originally introduced by the previous Tory government, was shelved last year under Rishi Sunak’s leadership. The cost of upgrading a property from the lowest rating of G to a C is estimated at around £27,000. However, experts suggest that spending approximately £10,000 could elevate 90% of properties rated D to a C, while only about 60% of E-rated properties would reach the required standard.
A government spokesperson emphasized the need for these reforms, stating, “The private rented sector is in desperate need of reform, and our Renters’ Rights Bill will make renting fairer for all. The energy shocks of recent years have also shown the urgent need to upgrade British homes so we can secure our energy independence and reduce fuel poverty. Responsible landlords who provide quality homes to their tenants have nothing to fear from the sensible overhaul of private rented sector regulation we intend to implement.”
This proposed overhaul is poised to have significant implications for both tenants and landlords. For tenants, particularly those in financial distress, the new measures could provide crucial protections against eviction, potentially stabilizing their housing situations. For landlords, the required property upgrades may involve substantial financial investment but could ultimately lead to improved energy efficiency and potentially lower running costs in the long term.
As the Renters’ Rights Bill progresses, it will be crucial to monitor its impact on the rental market and its effectiveness in balancing tenant protection with landlord responsibilities.
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