The Renters (Reform) Bill – A Guide for Landlords
Published on May 31, 2023 by Sarah Mac
The long-expected Renters (Reform) Bill was finally introduced to parliament on 17 May, bringing with it perhaps the most significant reform of England’s private rented sector in more than 30 years.
The Renters (Reform) Bill aims to deliver “safer, fairer, and higher quality homes”, faster redress for landlords, and more details on letting to tenants with pets. Here’s a look at the proposals included in the Bill.
What is included in the Renters Reform Bill?
The Renters Reform Bill proposes to protect both landlords and tenants by:
- Abolish Section 21 in favour of ‘periodic tenancies’.
- Reform possession grounds, including mandatory grounds for possession where tenants are consistently in arrears with their rental payment, and where a landlord intends to sell.
- Create a new property Ombudsman to settle disputes and relieve pressure on the courts. Private landlords will be required to join.
- Introduce a digital Property Portal to better inform tenants and landlords of their rights and obligations and assist local councils in carrying out their enforcement duties.
- Establish a statutory right for tenants to request a pet, which landlords cannot refuse without reasonable grounds.
End of Section 21
Section 21 – no-fault evictions – will become a thing of the past. Instead, landlords will only be able to evict tenants in specific cases, for example if they have fallen into arrears, or if they are displaying antisocial behaviour. If the landlord wishes to move back in, move a close relative in or sell the property, they can evict the tenant under Section 8 reforms, however this cannot be within the first six months of the tenancy. There will also be increased protection for landlords whose tenants have consistently missed rental payments,
End of fixed-term tenancies
The majority of tenancies start as fixed term, assured shorthold tenancies. Tenants sign for a set period, say one or two years, then at the end of that term, the tenancy becomes a month-by-month rolling tenancy, known as a ‘periodic tenancy’. The Bill proposes to remove the fixed term part, so that new tenancies would be periodic from the outset.
Renting to tenants with pets
Tenants will have a legal right to request a pet, which must be made in writing with a description of the pet. Landlords would only be allowed to refuse on reasonable grounds, such as restrictions under a superior let, and must respond within a set period of time. If they agree to a pet, landlords would be able to request that tenants pay a reasonable additional premium or insurance to cover any pet-related damage.
Rent increase notifications
Rent increases would be limited to once per year. Landlords would be required to provide tenants with two months’ notice, which is double the current requirement of one month. As is currently the case, tenants will have the right to challenge such increases.
Property portal, ombudsman and Decent Homes Standard
Proposals have been included in the Bill for a landlord register. This will provide tenants with access to an online property portal where they can view information and documents related to the tenancy, including regulatory compliance documents.
An ombudsman would be introduced to help resolve disputes quickly and fairly, and landlords would be required to join. The ombudsman would have powers to ‘put things right for tenants’, including taking remedial action and/or paying compensation up to £25.000. The ombudsman will also be able to request that landlords reimburse rent to tenants where the ‘service or standard of the property they provide falls short of the mark.’
The Decent Homes Standard, which is current in force within the social housing sector and sets out how Landlords must ensure properties are in good repair and free from health and safety issues, would be applied to the Private Rental Sector.
When will the Renters (Reform) Bill become law?
The Bill is, at present, simply a set of proposals, all of which are up for discussion in the House of Commons and the House of Lords. The Bill will go through a series of changes as it passes through. If it becomes law, this is not likely to happen until at least summer 2024.
Where can I find out more about the Renters (Reform) Bill?
You can learn more about the Renters (Reform) Bill here.