The Renters Reform Bill: A New Hope for Older Renters?

As the Renters Reform Bill finally sees its second reading in Parliament, Senior Policy Officer Erika Chabén and Policy Manager Chit Selvarajah explain why we need reform sooner rather than later.

It’s been a long time coming. On Monday, the Renters Reform Bill finally had its second reading in Parliament. At Independent Age we’re reflecting on why this Bill is so important for older renters and the risks with delaying any of its aspects.

We know that the number of people renting in later life is growing, while our latest report exposes the issues older renters on a low income can face, such as struggling to afford rent, fears around security and worrying about the quality of their homes.

At Independent Age, we believe that everyone should have access to decent and affordable homes, so we’re pleased to see progression of the Renters Reform Bill as the legislation has the potential to improve the lives of many private renters.

However, with news that the Government are planning to indefinitely delay the banning of Section 21 notices, we are concerned that the Bill will lose impact. Such hold ups to critical protections then risk damaging the health and quality of life that older renters experience.

While this Bill now focuses on issues around security of tenancy, we hope this paves the way to discuss other issues such as the affordability and quality of rental homes. We want the Government to ensure the experiences of vulnerable groups, such as older people on a low income, are understood by MPs so that this Bill works for them.

Why this Bill is important for older renters

Through conversations with older renters, we know that those on a low income are particularly vulnerable to unjust practices. As part of our new report on renting in later life, older people shared their renting experiences with us. We’ve heard from people living in homes that are cold, mouldy, leaking and in severe disrepair. Many told us their concerns about reporting issues through fear of insecure tenancies and the threat of Section 21 evictions. This lingering risk impacts the mental and physical wellbeing of older renters.

Currently, almost all tenancies have an end date where you can renew your contract. At this point landlords are able to increase the price of rent or change their tenants. The Bill wants to end these types of contracts, called Assured Shorthold Tenancies, and put in place new rolling, open-ended tenancies, which offer tenants more security.

Another important change within the Bill is the end of ‘no fault’ evictions through Section 21. This section allows landlords to evict a tenant for no specific reason. While we’re grateful that the law will be changed, we’re very concerned that the Government plans to delay its effect until unrealistic reforms to the court system are implemented. We fear that this could take several years and may mean even more years of older people feeling insecure in their own homes.

The Government is also introducing new ways to evict people. While we recognise the need for a balance between tenants and landlord rights, we don’t think all of the changes are fair.

Under the Government’s proposals, an older renter who is up to date with their rent and sticks to the rules could still have to move out within two months. Through conversations with older renters, we know this is not nearly enough time to find a new place to live.

Independent Age supports the introduction of a new Ombudsman for the private rental sector and the property portal. These are tools that have the potential to improve transparency and processes to ensure that renters are being treated fairly and living in decent homes, but only if resourced appropriately.

We know that older renters are particularly vulnerable as it can be harder for them to find a suitable home. Typically relying on a fixed income, it can be more difficult for people in later life to find other avenues to increase their finances. We know that there are some older renters whose income is mostly comprised of benefits, such as the State Pension. From our research, we’ve found that almost half of all older renters are recipients of Housing Benefit, which continues to be frozen. With the typical upfront cost for an unplanned house move (for a median private rental household) coming in at £1,709, for people with limited means of upping their income, this can present a huge amount of stress and pressure.

A combination of these elements can lead to older renters feeling forced to cut back on essentials in order to manage their rents, as we have heard through conversations with people in later life.

What’s missing from the Bill

Finding a home to rent can be hard enough without experiencing discrimination. However, some older renters are prevented from renting certain properties because they receive benefits. This is known as a ‘No DSS’ policy. With almost half of older renters receiving Housing Benefit, this presents a huge issue. The Government must outlaw ‘No DSS’ discrimination as part of the Renters Reform Bill.

We also want to see further action in other areas of discrimination such as the ageism experienced by older people when trying to let properties.

Our report on renting in later life features real-life stories from older renters being denied viewings, having to provide large amounts of money upfront and being asked to provide guarantors if they receive benefits.

Older renters should be able to feel secure in their own homes and not fear unreasonable evictions when they pay their rents on time and don’t break rules. We know from our research how important stability and the desire for a long-term home is for older renters.

We also believe that adequate time must be provided for renters to find alternative homes. Older people may find moving particularly stressful as a result of the practicalities of moving and the barriers they can face when trying to find a suitable new home.

Therefore, Independent Age proposes the Government lengthen notice periods from two months to four months in circumstances where the tenant has not breached the tenancy agreement. Additionally, the Government must extend the protection period at the start of a tenancy from six months to two years, in line with its original proposals.

Finally, we want the Government to return to its commitment set out in the White Paper to expand the Decent Homes Standard (DHS) to include homes in the private rented sector (PRS). A good home is fundamental for older people to maintain their health, sense of community and independence. We’ve heard from too many older renters on low incomes who are living in homes in desperate need of repair, forced to manage black mould outbreaks and holes in their floors.

The DHS is a set of minimum standards for homes, such as ensuring there’s no mould and a home is warm enough to live in. The health of older people who rent is at risk when exposed to cold homes or other risks. Currently, 30% (124,000) older private renters live in non-decent homes, compared with 15% of older homeowners, and 10% of older social renters.

Our next steps

The Renters Reform Bill is a significant piece of legislation that has the potential to make a real difference to the lives of older renters. We are committed to ensuring that the Bill is implemented in a way that benefits older renters and ensures their voices are heard.

As the Bill moves through Parliament, we’ll give campaigners plenty of opportunities to amplify the voices of older renters. You can get involved by joining our Campaigns Network mailing list.

Finally, Independent Age is committed to understanding the housing situation that older people experience and campaigning for the issues they face. Our recently published report dives into the hidden realities of renting in later life.