Renters' Rights Bill

Written evidence submitted by the NFU (RRB40)

The NFU represents over 4 5 ,000 farm er and grow er businesses across England and Wales.

Whilst the NFU has an interest in many aspects of the Renters ’ Rights Bill, for the purposes of this call for evidence, we have focussed on the areas most pertinent to our members.

Renters (Reform) Bill: call for written evidence

1. The NFU understands government’s reasoning behind the proposed abolition of the Section 21 process allowing a residential landlord to obtain possession of a property.

2. In the absence of Section 21, the NFU was pleased to see new grounds for possession particularly in relation to agricultural employees, superior landlords of agricultural tenancies and where the landlord or close relative requires the property for their own use as a dwelling. We ask that these remain in the Bill as they are absolutely necessary for business continuity.

3. The NFU would ideally like new ground 5A to be extended to include agricultural workers on the farm who operate on a self-employed basis. For example , share-farming is a reasonably common business model within the agricultural industry where an owner of the land supplied the land and infrastructure and the share farmer supplies their expertise and labour. In such operations , especially those involving livestock , the self-employed share farmer may need to live onsite in the same way an agricultural employee would.

4. The NFU would want to see the notice period for the proposed new ground 2ZA be reduced from 4 months to 2 months as was proposed by the previous Government in the Renters’ Reform Bill. This is because under the Agricultural Holdings Act 1986 (AHA) (to which this ground would apply) , a superior landlord can serve Notice to Quit on a tenant requiring vacant possession within 3 months. A 4 month notice period under 2ZA could therefore lead to a breach of agreement by the AHA tenant . The breach could be exacerbated in the event that there are further delays in getting possession due to an inadequate court system.

5. In addition , it is unclear how proposed ground 2ZA interacts with proposed ground 2ZC . For example, if possession was sought under 2ZA but the landlord ( the superior tenant ) was unable to get possession before the termination of the superior tenancy, would the notice become void? Would the superior landlord have to then re-start the possession process in their own right by then serving notice under 2ZC? Would the original notice served under 2ZA be capable of being converted to a notice under 2ZC so as to reduce any delay in possession?

6. Secondly, before the abolition of the Section 21 procedure, there must be an adequate court system already functioning with capacity to handle an increase in possession applications under Section 8 with all employees having had the necessary training.

7. Although we only have anecdotal evidence, in the majority of cases, serving a Section 21 notice usually results in a tenant vacating the property within the notice period thus avoiding the need for involving the court system. Should there be a need for a court order, Section 21 has its own accelerated procedure.

8. It is well known that tenants who vacate their accommodation at the end of a notice period are often considered as having made themselves voluntarily homeless by local housing authorities which then affects their right and ability to qualify for support in getting further housing . Our members are increasingly reporting to us that their tenants on who m notice has been served , have been encouraged by their local authorities not to vacate until the court has ordered possession. The lack of S2 1 and an accelerated possession process will inevitably mean an increase in applications for court possession orders. In addition , by exceeding the notice period to the detriment of their landlord, tenants run the risk of attracting negative landlord references when applying for future accommodation.

9. The majority of landlords we have come across only serve notice on their tenants because they require possession of the property for a certain reason which may or may not have been covered within the current Section 8 grounds. They generally do not use Section 21 to simply take possession because they do not like the tenant or in a retaliation situation but merely because it is easier to use than Section 8.

10. The current Section 8 procedure often requires an application to the Court. It is well documented that the court system is currently overburdened and that there are significant delays in landlords being granted possession orders. Therefore, before introducing a number of new grounds for possession into this procedure which will inevitably result in a marked increase in applications, there must be an adequate and efficient court system in place and / or a simplified procedure where the grounds relaied on are mandatory.

11. In certain situations, it is imperative that a landlord is quickly able to get possession of a property and in any event without delay. For example, on farms, farm employees are often provided with a cottage to live in to enable the better performance of their duties. In many cases, including animal welfare, it is necessary for them to live on site. Where an existing tenant of a property refuses to vacate, delays in a landlord taking possession of a property to accommodate an incoming employee due to an inadequate court system would be extremely detrimental to a farming business.

12. Farming is a multi-generational profession and farming partnerships can often include three generations. It is also a lifelong profession with the older generations continuing to farm well beyond state retirement age. It is common for retiring farmers to remain living on the farm, often moving to a farm cottage on this occurrence.

13. In light of the above, it is therefore important that where cottages on a farm are let to a tenant, they can be made available to house either the landlord or another family member as and when the need arises. For example, the landlord may retire and vacate the main farmhouse or a child may return home having graduated from university.

14. Letting out surplus dwellings on a farm to tenants with no connection to the farm can improve the availability of rural housing which is currently in short supply. To encourage a landlord to let to a tenant not involved in the farming business, there is a need for certainty that a mechanism exists to enable possession of a property in the future in the event it is required for themselves or a family member.

October 2024