A Guide to the Renters Reform Bill
The Renters Reform Bill proposes fairer rules across the private rental market in England, such as getting rid of no-fault evictions and improving landlords’ powers to evict anti-social tenants. This article explains what these changes mean for landlords and tenants.
What is the Renters Reform Bill?
The Renters (Reform) Bill is proposed legislation that aims to rebalance the rights of landlords and tenants and ensure “basic decency standards” for renters in England. It follows on from the release of the government’s white paper, A Fairer Private Rented Sector, which seeks to overhaul the private renting sector and level up housing quality.
The landmark bill was first introduced to Parliament on 17 May 2023 and had its second reading on 23 October 2023. It is presently undergoing a legal process before the changes become law.
The legislation proposes to remove no-fault evictions (Section 21) and grant tenants greater confidence when voicing concerns. It will also give landlords additional powers to regain possession of their property when their tenants are in rent arrears or exhibit anti-social behaviour.
What does the Renters Reform Bill include?
The Renters Reform Bill has proposed several new rules for landlords. These include the removal of Section 21, the switch to periodic assured tenancies and the launch of a Privately Rented Property Portal.
Here are some of the most important changes in the Renters Reform Bill:
1. Ending Section 21 ‘no-fault’ evictions
The Renters Reform Bill proposes to remove Section 21 in the Housing Act (1988), which currently allows for no-fault tenant evictions. This will bring England in line with Scotland and Wales, which have already put legislation in place to end unfair eviction practices:
- In Scotland, no-fault evictions ended in 2017 with the introduction of open-ended tenancies
- In Wales, tenants must be given a six-month notice period for evictions – this can only be given after six weeks of renting.
However, on 21 October 2023, the government stated that the removal of Section 21 would only occur when “progress has been made to improve the courts”, such as “digitising more of the court process to make it simpler and easier for landlords to use” and providing “early legal advice” to support both landlords and tenants. This will likely cause delays in the implementation of this part of the bill.
2. Revising Section 8 notices
Section 8 is a notice that is given to tenants when the landlord has legal grounds to remove them from the property and regain possession – the Renters Reform Bill will give landlords additional powers within this legislation.
For example, it will make it easier to:
- remove tenants who have been two months in arrears, three times within three years
- get “absolute ground for possession” if tenants partake in anti-social behaviour and have broken the terms of their lease.
These proposals were reinforced in The King’s Speech 2023: “… landlords will benefit from reforms to provide certainty that they can regain their properties when needed.”
The changes to Section 8 also aim to honour the pledge made in the government’s white paper: to be “comprehensive, fair, and efficient, striking a balance between protecting tenants’ security and landlords’ right to manage their property.”
Landlords will no longer be able to evict tenants if late rent is caused by delays in Universal Credit payments.
3. Replacing Assured Shorthold Tenancies
Assured Shorthold Tenancies (AST) have been the most common tenancy form of tenancy in the private rented sector since 1997. With ASTs, landlords must provide tenants with a fixed-term tenancy agreement between six and 12 months, which will then be renewed as a new fixed-term agreement or move to a periodic ‘rolling’ tenancy.
The Renters Reform Bill proposes to replace this system with a new single system of periodic assured tenancies. Providing rolling contracts as standard means tenants will have more flexibility to end their tenancy as their situation changes.
The requirements for tenants have also been revised — they will now be required to provide up to two months’ notice if they wish to end their tenancy to allow landlords time to find new tenants and avoid time without rental income.
These proposed changes will apply to all new tenancies once the bill becomes law, although changes to existing tenancies will be phased in.
4. Limiting rent reviews
The Renters Reform Bill includes plans to end the use of rent review clauses.
Landlords will still be able to increase rental payments, but this will be limited to once a year and must be in line with market rates. Tenants must also be given two months’ notice, using a government-provided form.
Tenants will have the right to challenge the proposed rent increase, which can be resolved by a tribunal if an agreement can’t otherwise be met.
5. Allowing tenants to ask to keep pets
At present, landlords can legally refuse to let a property to tenants who have pets. However, the Renters Reform Bill states that landlords must consider tenants’ requests to have a pet at the property and respond within 42 days. If the landlord refuses to allow pets, they must provide a reason.
To provide greater assurance to landlords, tenants provide written confirmation that they have insurance to protect the property against pet damage.
6. Improving compliance with a landlord portal
The Renters Reform Bill will require landlords to register their properties on a newly created Privately Rented Property Portal. This portal will provide updates to landlords on legislative changes and let tenants know whether their landlord is compliant. It will also make it easier for councils to act against rogue landlords.
7. Introducing a new ombudsman
Changes to rental legislation will include the creation of a government-led ombudsman – an independent mediator that resolves issues in a way that is fair for everyone involved. Any decisions made by the ombudsman will be legally binding.
Landlords must register with the ombudsman, even if they use a letting agent. As described in the government’s white paper: “making membership of an ombudsman scheme mandatory for landlords who use managing agents will mitigate the situation where a good agent is trying to remedy a complaint but is reliant on a landlord who is refusing to engage.”
If the ombudsman believes that a landlord has not met their legal obligations, they may be fined up to £25,000 or reimburse the tenants’ rental payments. In extreme cases, landlords can be banned from letting properties in the future.
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