12 September 2024
Grainger
plc
("Grainger", the "Group", or the "Company")
Grainger welcomes the UK
Government's Renters' Rights Bill
Grainger plc, the UK's largest
listed residential landlord and leader in the build-to-rent sector,
welcomes the UK Government's Renters' Rights Bill, presented
yesterday in Parliament, and its ambition of raising standards in
the rental market. As the country's leading responsible landlord,
Grainger has been calling for and championing better rental
standards for renters for many years.
While the Renters' Rights Bill aims
to raise standards in the private rented sector, it does not
include rent controls, a mechanism that has proven detrimental to
renters when implemented elsewhere. The draft legislation will now
go through the Parliamentary process of scrutiny and debate over
the coming weeks and months.
The proposals within the Bill align
to Grainger's well-established approach of providing high quality,
energy efficient, mid-market homes to a wide range of household
types, with a deep commitment to customer satisfaction and
retention.
Grainger has long supported the
abolition of 'No Fault' evictions (Section 21). Under the
proposals, landlords will continue to be able to address cases of
unpaid rent or anti-social behaviour.
The proposals do not include any
form of rent controls and landlords will still be able to review
rents annually and set them in line with the open market. In
addition, to prevent rogue landlords from using egregious rent
increases as a backdoor for eviction, renters will be able to
challenge extreme rent increases which will be moderated by an
expert Tribunal to ensure rents are in line with open market rents
in the local area. This process (Section 13) is something Grainger
is very familiar and comfortable with, as it is an established
process within its Regulated Tenancy portfolio, which has
historically exhibited rental growth in line with the
market.
Other proposals within the draft
legislation include:
· Introducing a new Decent Homes Standard for the private rented
sector which it is anticipated that Grainger properties are already
compliant with
· Introducing new rules around addressing damp and mould in
properties in the private rented sector ('Awaab's law'), which
Grainger anticipates it is already compliant with
· A ban
on rental bidding wars, a practice which Grainger does not condone
nor participate in
· Minimum energy efficiency standards for the private rented
sector, following industry consultation, (EPC C or above by 2030),
which Grainger is already well on its way toward compliance, with
94% of its PRS portfolio already EPC rated C or above.
· A
requirement on landlords to not unreasonably refuse pets, where
Grainger already offers pet-friendly properties
· Landlords will not be able to refuse tenants with children or
those in receipt of state benefits. This aligns to Grainger's
current position, where families are welcomed at sites across the
portfolio and Grainger Trust, Grainger's inhouse affordable housing
provider, provides homes to renters on lower incomes and
benefits.
Grainger has been heavily involved
in helping inform the draft legislation, having first made
representations to the 'A Fairer Private Rented Sector' White Paper
in 2022.
The Bill will now be debated and
scrutinised over the coming weeks and months in both the House of
Commons and House of Lords, and Grainger looks forward to
continuing to use its expertise to help inform and shape the final
legislation.
It is anticipated that the new
legislation will come into effect by mid-2025.
- ENDS -
For
further information, please contact:
Investor relations
Kurt Mueller, Director of Corporate
Affairs, Grainger plc:
+44 (0) 20 7940 9500
Media
Julie Deighton, Director of
Communications, Grainger
plc: +44 (0)
20 7940 9500
Ginny Pulbrook / Geoffrey
Pelham-Lane, Camarco:
+44 (0) 20 3757 4992 / 4985