The Renters (Reform) Bill is set to impact 11 million tenants and 2.3 million landlords across the country, if passed. The main change the Bill is set to change is the Section 21 of the 1988 Housing Act. The banning “no-fault” evictions. Ultimately, meaning renters are able to stay in the property until there are relevant reasons for landlord’s possession of the property.
This will result in improved security for tenants. Allowing tenants to challenge unfair rent increases without the risk of being evicted from their home. Although this is the case, further comprehensive possession grounds are to be introduced. Landlords will be able to repossess their property, especially where tenants are at fault, in cases such as anti-social behaviour or avoiding rent payments.
Clear Tenancy Agreements
Tenants will also be provided with stronger protection against unfair evictions. By ensuring tenants are able to appeal to above-market rents, set to purposely force tenants out. The legal obligations and responsibilities of landlords will be provided clearly. Along with further information to the tenants of a property. Therefore tenants have a complete understanding of the tenancy agreement beforehand. Finally, the new Bill is set to allow tenants the right request a pet in the property. A landlord will be forbidden from unreasonably refusing. Landlords requiring pet insurance to cover any damage to their property, may pass on the cost of such to their tenants.
Simpler Structure
This simpler tenancy structure is to allow tenants to feel protected from unfair evictions. They can therefore contribute towards the community they live in. Simultaneously landlords will be able to repossess their property if the circumstances fit. The Renters Reform Bill will eliminate fixed-term tenancies, replaced by periodic tenancies (with no end date). The security provided to tenants through periodic tenancies also allows/maintains the flexible nature of renting a property.
Tenants will be able to leave properties which do not have acceptable living conditions without having to pay the rent. They will be able to leave if circumstances change, for example in areas of employment. Tenants have the right to remain in the property until the decision is made to end their tenancy with their landlord then give two months’ notice, or if the landlord is able to give suitable reasons and evidence for regaining their property back. The valid reasons for a landlord regaining their property such as moving in, the selling of or redevelopment of the property does not count in the first six months of the tenancy agreement. Thus providing tenants with further security when renting a property.
Landlord Control
Landlords may still regain their property under valid circumstances. Such as tenants disrupting neighbours by portraying anti-social behaviour. Also tenants who have been in two months’ (or more) rent arrears three times within the last three years. The establishment of the Bill aims to provide both landlords and tenants with complete, fair and inclusive understanding of requirements from both parties. Although landlords are inhibited from unfairly raising the rent price of their property to purposefully force tenants out, landlords are able to raise rents in line with the market value once a year during a tenancy. To do so the landlord must fill out a form, available on gov.uk in the future. Guidance on this process from the Government is set to be in place once section 21 is abolished.
The Renters (Reform) Bill, announced in Parliament in May 2023, aims to protect both landlords and tenants. The main change being the ban of Section 21 no-fault evictions. This is set to have a large impact on landlords and tenants across the country. The ‘better deal’ for tenants ultimately ensures their security in their home. Living without the fear of unfairly being forced out of their home by their landlord.
Expected Royal Assent
The confirmed date for the introduction of the Bill has not yet been announced. The process could take a year or longer. Experts predict that the Bill will have royal assent and be passed into law on the 1st October 2024. The Bill will be implemented in two stages. All new tenancies from the commencement date, and all existing tenancies from the extended application date. The industry must be given at least 6 months’ notice of the first stage. There must then be at least 12 months’ notice between these two stages.
These are serious and fundamental changes for the rental market, requiring action by all landlords including registration of both property and landlord onto a government portal. Are you a tenant or a landlord who needs further advice and support? Our team is here to help you. We offer a variety of packages for landlords to include part and fully managed services. Please contact your local office on:
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