The Tenant (Reform) Bill in the UK faces the risk of being vetoed by the upcoming elections. This bill has already passed through the House of Commons, but legislative action must be swiftly taken before Parliament is dissolved on May 30th to prevent failure. The most notable aspect of this bill is the abolition of Section 21 eviction rights, which is currently under scrutiny in the committee stage in the House of Lords. However, progress on the bill's advancement has been slow, requiring cross-party cooperation to ensure smooth passage.
Prime Minister Rishi Sunak addressed the issue of the bill's passage in an interview with LBC: "This is a discussion across all parties, it's part of parliamentary procedure. When Parliament is dissolved at the end of the session, we have a few days left to pass final legislation, and I can't unilaterally push through these bills." He emphasized the importance of government collaboration with other parties and pointed out the realities of this legislative process.
Progress on the Draft Tenant (Reform) Bill has been sluggish. The main elements of this bill were proposed by former Prime Minister Theresa May in 2019 but did not enter parliamentary scrutiny until May 2023. It was not until April 2024 that the bill underwent its second reading in the House of Commons, with reports indicating opposition from some Conservative backbenchers to the abolition of Section 21 eviction rights.
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Currently, the bill stipulates that the abolition of Section 21 will only take effect after court review. This provision, known as "no-fault eviction," has sparked controversy between tenants and landlords. Tenants argue that Section 21 is unfair as it allows them to be evicted without fault, while some landlords may abuse this right. However, landlords have expressed concerns about using Section 8 for eviction, as it is time-consuming and requires court procedures.
In addition to abolishing Section 21, the bill includes other significant provisions. For example, assured shorthold tenancies will become the norm, tenants will have the right to challenge unfair rent increases through the courts, it will be illegal to refuse housing based on receiving benefits or having children, and a new national landlord register will be established.
If this bill ultimately fails, it will spark widespread controversy. Therefore, the government and Parliament must expedite the legislative process to ensure the bill's swift passage before Parliament is dissolved, to maintain the balance of rights between tenants and landlords, and stabilize the housing rental market.