REFORM BILL

What is the Renters (Reform) Bill?

The Renters (Reform) Bill sets out the government’s plans to fundamentally reform the private rented sector and levelling up the housing sector, which commits to “bringing a better deal for renters”.  The private rented sector white paper was published in June 2022 and the Bill was introduced to Parliament on 17th May 2023, which still remains to be passed before becoming law.

Why is the Bill introduced?

The government argues that under the current legislation, some renters face a lack of security, especially in terms of the the section 21 “no fault” eviction. They say tenants having to move with short notice affects children’s educational outcomes, holding stable employment and preventing families to lay down roots and invest in their local areas. 

The government also recognises that responsible landlords are being “undercut by minority criminal landlords”.  It has been highlighted that almost a quarter of private rented homes do not meet “basic decency standards” raising further plans in the Bill to introduce the Decent Homes Standard to the sector.  

Overview of the Bill measures

1. Abolished Section 21 “no fault” evictions

The Bill confirms plans to abolish Section 21 - the process that enables landlords to repossess their properties, instead landlords will now only be able to evict their tenants under reasonable circumstances under Section 8.

The government states that removing Section 21 will level the playing field between landlords and tenants, empowering tenants to challenge poor practice and unjustified rent increase without fear of eviction, as well as incentivising landlords to engage and resolve issues.

2. End Fixed Term tenancies

The Bill will end fixed term tenancies and move to period tenancies, with no end date.  This allows tenants flexibility to give their 2 months notice at at anytime enabling them to leave the poor quality properties, or if they have a change in circumstances, without being liable for rent in a longer fixed period.  Landlords will not be able to use grounds for moving in or selling/development for the first 6 months of the tenancy agreement.

3. Strengthening Section 8 grounds for possession of property 

Allowing the landlord to recover their property if they have legal reason to do so, and easier to repossess properties where tenants have breached the terms of their tenancy agreement.  These grounds are catergorised between mandatory and discretionary.  For mandatory grounds, the judge must award possession to the landlord when evidence of the grounds are met.  For more information on new Section 8 grounds you can visit: https://www.gov.uk/guidance/tenancy-reform-renters-reform-bill

4. A new Private Rented Sector Ombudsman

The Government intend to approve just one redress scheme, which will be the ombudsman, mandatory for all private landlords to join, regardless if an agent is used.  Tenants and landlords joining the same scheme have access to a streamlined service, making it quicker, cheaper and less adversarial.

5. Tenants rights to keep pets

The Bill has introduced that tenants can request permission to keep pets, in which the landlord can not unreasonable withhold consent.  However, to protect Landlords and the cost of any potential damage to their properties, the tenants must provide in writing that they have acquired pet insurance, or agree to pay reasonable costs to the landlord’s insurance in case of pet damages.

6. A new Property Portal

The Bill has plans to introduce a new Property Portal for landlords, creating a better understanding and ability to demonstrate compliance with their legal requirements.  This will also allow local authorities to track and enforce if requirements are not met.

When will these changes be implemented?

The aim is to implement these changes in 2 stages.  Six months notice will be provided for the first implementation date for all new tenancies to be periodic and governed by the new laws.  The second implementation date will be for any existing tenancies to transition to the new system, in which after this date all tenants will be protected against Section 21 and landlords will have access to the full strengthened grounds of possession.

Future proposals

- Decent Homes Standard - currently only applicable to social housing, but will be introduced to private rented homes in the near future

- Bans from refusal to rent to families with children on benefits

If you have any questions about this article, please feel free to contact us. Published May 2023.