The long-awaited Renters Reform Bill has finally been presented to Parliament. Described as “the biggest shake-up of the private rented sector in 30 years”, the Bill has suffered a number of delays and hold-ups since the reforms were first discussed four years ago.
After progress was delayed by the pandemic, a white paper entitled ‘A Fairer Private Rental Sector’ was published in June last year, setting out the government’s proposals in full. Since then, landlords and renters have keenly awaited news of the Bill’s progress.
On 17th May, the Renters Reform Bill received its first reading, and it will now progress through various stages in Parliament. The government has promised that its proposed legislation will provide “safer, fairer, and higher quality homes” for renters, but it is still likely to be some time before it can be passed into law.
So what can we expect when the Bill finally reaches the statute books? Headline features include:
- No more Section 21 “no fault” evictions
- A Decent Homes Standard established for the private rented sector
- An end to Shorthold Tenancy Agreements
- Reforming Section 8 Grounds for possession for landlords
- The creation of a new Property Portal for tenants, landlords and councils
- Rent increases cut to one per year, plus easier ways for tenants to challenge excessive rent increases
- The introduction of a new, single Ombudsman service
- Removal of blanket bans on renting to applicants with children or those in receipt of benefits.
- Improved rights for tenants who want to keep pets.
What will the Renters’ Reform Bill 2023 mean for tenants?
One of the most important changes proposed in the Bill is the end to Section 21 ‘no fault’ evictions. That’s where a landlord can give notice to a tenant who has not breached their rental agreement without a good reason.
It is believed that this will prevent rogue landlords from evicting good tenants who challenge unreasonable rent increases or ask for necessary repairs. Once the Bill has passed into law, landlords will only be able to serve notice if they can provide a legally-defined reason for taking back the property.
Renters will no longer be asked to sign shorthold tenancy agreements. Instead, tenancies will simply roll on, becoming ‘periodic tenancies’ with no fixed end date. Tenants can leave when they choose, provided they give two months’ notice.
The Bill also promises to make it easier for families to rent. It will no longer be possible for landlords to issue blanket bans on tenants who have children or applicants receiving benefits. Landlords will no longer be able to ‘unreasonably refuse’ a tenant who asks to keep a pet.
Tenants will also benefit from closer checks on the quality of their rental accommodation. Thanks to a new property portal, councils will have better access to information that will help them crack down on rogue landlords. The portal will also make it easier for renters to understand their rights and access information regarding their landlord’s compliance.
The new Ombudsman body will enable faster resolution of disputes without going through the court system.
What will the Renters’ Reform Bill mean for landlords?
Section 21 ‘no-fault’ evictions will be abolished, and under new laws, tenants who are not in breach of their tenancy agreement will be protected from eviction. Landlords will only be able to give notice after the tenancy has run for six months. Then they can only evict tenants for reasons that will be defined in law.
Permitted reasons might be because the landlord is selling up or moving into the property themselves.
While abolishing Section 21 gives more protection to tenants, reforms to Section 8 grounds for possession have been planned to protect responsible landlords.
The proposed changes to Section 8 should speed up and strengthen court proceedings, allowing landlords to regain possession more easily. Where there is clear evidence that tenants are in serious rent arrears, have caused damage or behaved in an anti-social way, landlords will be able to evict them more swiftly.
The introduction of a new Ombudsman should also help with landlord/tenant disputes. Currently, there are a number of organisations that oversee disputes between landlords and tenants. It is hoped that the new body will streamline the system whilst also easing pressure on the courts. The government has also pledged to deal with unacceptable delays in the court system. Membership of the Ombudsman will be mandatory for all private landlords, whether or not they use a lettings agency.
The new laws will also bring about changes to the way tenancies are structured. Assured and Assured Shorthold tenancy agreements will automatically become ‘periodic’. That means tenancies will roll on with no fixed end date. Tenants will be able to leave whenever they want, giving two months’ notice.
Rent increases will only be allowed once a year, and blanket bans on renting to families with children, or people claiming benefits, will end. It will become mandatory to consider (and not unreasonably refuse) a request to keep a pet, but landlords will be able to ask tenants to pay for pet insurance.
How can I learn more about the Renters’ Reform Bill?
There is more information on the planned reforms available in the white paper. But be aware that some of the details may change before the Bill finally reaches Parliament.
As experienced estate agents in Ilford and Barkingside, we’ll be looking out for any new developments that might affect tenants and landlords and reporting them here.
Meanwhile, if you are looking for a new home to rent, or if you have a property to let, why not give us a call?
Why not give us a call at 0203 972 7341 or email info@oaklandestates.co.uk?
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