The new Labour government plans to introduce ‘hardship tests’ in an effort to make evictions more difficult for tenants facing financial difficulties, reports The Telegraph.
Emulating the French Model
The initiative, led by Housing Minister Matthew Pennycook, aims to adopt measures similar to those in France, where a ‘hardship test’ has been in effect since 2008. Under the French system, tenants without rehousing options can appeal an eviction, effectively safeguarding those in financial distress. This approach was something Pennycook sought to introduce while in opposition, during the debate over the now-defunct Renters Reform Bill, though it failed to pass under the previous Conservative government.
Implications for UK Landlords
The proposed tests would significantly impact landlords, particularly affecting their ability to evict tenants who are struggling financially. This move aligns with Labour’s broader agenda to make renting fairer and protect vulnerable tenants, as highlighted by a government spokesperson: “The private rented sector is in desperate need of reform, and our Renters’ Rights Bill will make renting fairer for all.”
Additionally, the Labour government plans to resurrect and enforce policies requiring landlords to upgrade their properties to meet a minimum Energy Performance Certificate rating of C. This initiative, originally set forth by the Conservatives but later abandoned, underscores the government’s commitment to enhancing housing standards and energy efficiency.
Economic Impact on Property Upgrades
The Telegraph notes the financial implications for landlords, estimating that elevating a property from an EPC rating of G to C could cost around £27,000. However, a more modest investment of £10,000 could reportedly elevate 90% of D-rated properties and 60% of E-rated properties to the C standard.
The government’s spokesperson reiterated the benefits of the upcoming legislative changes: “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.”
