PROMISED law changes to help renters and ripped-off leaseholders are stuck because of a major rift between Michael Gove and Downing Street.
The Sun understands that the Housing Secretary is ready to see the Renters Reform Bill pass through the Commons with the help of Labour votes – but Rishi Sunak is blocking the move.
GettyPromised law changes to help renters and ripped-off leaseholders are stuck because of a major rift between Michael Gove and Downing Street[/caption]
Whitehall sources say the PM doesn’t want to face the embarrassment of Tory MPs voting against the government.
A government source said: “It’s a complex area, and we’re working through with the Department for Levelling Up, Housing and Communities.
“Labour are in a right mess over housing, stopped houses ready to go being built and Sadiq Khan wants failed rent controls which would make things so much worse for renters.
“Labour hasn’t got a scooby.”
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The Renters Reform Bill would fulfil a 2019 Conservative manifesto promise to end hated no-fault evictions.
But the long-awaited new law has been continuously delayed because of threats from Tory backbenchers, including landlords, to vote it down.
The Bill is now on the brink of collapse with time running out for it to pass through the Commons before a showdown general election.
Mr Gove and Levelling Up Minister Jacob Young are still trying to reach a compromise with backbench rebels, who are being being led by Totnes MP Anthony Magnall.
Mr Magnall isn’t a landlord and insists he wants the Bill to pass – but with major amendments.
Tom Darling, Campaigner Manager at the Renters’ Reform Coalition, said: “What an indictment of our political process.
“Get 40 backbench landlord MPs together, add a weak Prime Minister, and you have a recipe for wealthy interests being able to essentially veto repeatedly promised, widely popular, desperately-needed legislation.
“The government must progress this legislation immediately – even if that means standing up to their backbenchers. England’s 12 million private renters will hold them accountable for anything less.”
Meanwhile, Mr Gove is also understood to be caught in a tug-of-war with the Treasury over ending leasehold rip-offs.
The Housing Secretary wants to change the law to rapidly reduce all ground rents to peppercorn rates.
But The Treasury is said to be terrified of frightening pension funds that have invested in the “unfair” and “feudal” income stream.
Insiders say a compromise will likely be found that will see leasehold reforms implemented slowly over an extended period of time.
Jeremy Hunt has recused himself from conversations around the Leasehold and Freehold Reform Bill due to being a landlord.
A Whitehall source said: “Ever since Liz Truss‘ mini-budget spooked pension funds The Treasury has been extra cautious about major reforms that impact them.
“But Michael Gove is clear he wants to see leasehold reform happen as soon as possible.”
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