Rental reforms could reduce homelessness in London, says councillors

Reforms to the private rental sector laid out in a government White Paper have been welcomed by London Councils, who say the proposals could reduce homelessness in the capital.

Among the proposals outlined in the paper published yesterday were plans to outlaw no-fault evictions and blanket bans on families with children or on benefits.

The cross-party group representing London Councils said these changes, along with moves to ensure homes meet a decent standard of living, will help to give tenants security.

Cllr Darren Rodwell, London Councils’ Executive Member for Regeneration, Housing & Planning, said: ‘Boroughs are especially pleased by the inclusion of a ban on no-fault evictions. Too often we’ve seen Londoners turfed out of their homes for no good reason and made homeless. With 155,000 homeless Londoners – including 86,000 children – currently living in temporary accommodation arranged by their local borough, we hope this ban will improve stability for tenants and go some way to alleviating homelessness pressures in the capital.

‘We will continue to push for action on addressing London’s severe housing crisis. Councils now need strong enforcement powers and resources to help ensure any changes in the law actually succeed in helping tenants and boosting standards in the private rented sector.’

The group said they also hope the government will bring in measures to help low-income tenants to continue paying their rent and avoid homelessness as the cost of living crisis brings financial pressures.

Think tank, the Social Market Foundation, also supported the proposed reforms, but highlighted the need for more government action to tackle high energy bills and energy inefficient homes.

Amy Norman, Senior Researcher at SMF, said: ‘It is disappointing to see the previously proposed upgrade of EPC regulations missing from the white paper. With many renters wanting an environmentally-friendly home, and the Government’s commitment to delivering net zero, there was a missed opportunity to go beyond the Decent Homes Standard to decarbonise the private rented sector.’

But the CEO of an insurance company, Hamilton Fraser Group, has warned some of the new reforms could put off landlords from investing in the private rented sector.

Eddie Hooker said landlords may consider renting properties as ‘uncertain and undesirable’ if they don’t have control over when renters vacate after the end of tenancy and have to accept benefit claimants for temporary accommodation.

He said: ‘It’s vital that the eventual legislation doesn’t deter landlords from the sector as this will cause more landlords to exit, exacerbating an existing shortage of rental homes and driving up rents at a time when interest rates are rising faster than they have done in decades, and when people can least afford it.’

Photo by Kai Bossom