What you REALLY need to know about the Renters Reform Bill

What you REALLY need to know about the Renters Reform Bill?

The anticipation of the Renters Reform Bill has been alive and well since April 2019 when Theresa May first announced the Governments plan to deliver a fairer private rented sector for Landlords and Tenants. Finally, some three years later, the Bill has made it into Parliament and over the next 9-12 months, we will get to see the proposed changes in full.

The media hype surrounding this reform has been a circus so I want to begin this blog by reassuring you that it is not as bleak as the publications like to make it out. It is important to remember that these changes serve you as the Landlord as much as they protect your Tenants. The majority of Landlords in the UK are legitimate and conscientious people who take their role as Landlords seriously. If that is you, you have nothing to worry about.

Below we will look at some of the detail as it stands following the first reading in Parliament on the 19th May 2023.

Abolishment of the Section 21 No Fault Eviction & Tenancies to become periodic

Notably, the end of the Section 21 will be the change that causes most Landlords to be concerned, however there has been much reassurance that the section 8 grounds for eviction will be strengthened to support Landlords in repossessing their properties where they need to. There will be pressure on the Government to ensure that the courts are well equipped to deal with an increase in Section 8 possession orders.

The end of the Assured Shorthold Tenancy Agreement will mean that there will no longer be a fixed term and all tenancies will roll month to month. Alongside this, Tenants notice will increase to two months and notices will be acceptable in any visible form such as text message or email.

More possession grounds where Tenants are at fault e.g. antisocial behaviour and repeat rent arrears

Stronger possession grounds will be released where Tenants are convicted of a serious criminal offence or are causing or are deemed to be capable of causing nuisance/ harassment or harm. The notice periods for evictions relating to antisocial behaviour are also being reduced to allow Landlords to deal with this instances much more quickly.

Repeated rent arrears is another welcomed ground which at present, will mean a Tenant who has 3 incidences of 2 months rent arrears over a 3 year period can be evicted.

Provide stronger protections against retaliatory evictions

This will ensure Tenants are able to appeal against excessively above-market rents which are set to drive them out of their homes. Landlords will continue to be able to increase their rents to market value and if a Tenant does not agree, an independent tribunal will be able to determine the actual market rent of a property.

Introduction of a new Ombudsman that all private Landlords must join

This will provide a fair, impartial and binding resolution to many issues and will hopefully be dealt with more quickly, cheaply and in a less antagonistic setting than court.

Create a database of Residential Landlords and Privately rented properties in England

This will help Landlords understand their legal obligations and demonstrate compliance. This will again give good Landlords the confidence in their position alongside ensuring Tenants have access to more information to help them make informed decisions when entering into Tenancy Agreements. Local Councils will use this database to assist with their enforcement activity where it is needed most.

Tenants right to request a pet

Landlords must consider and cannot unreasonably withhold consent for a pet. However, an amendment to the Tenant Fees Act will support this by ensuring Landlords will be able to require pet insurance to cover any damage caused by the animal.

Further areas the Government will for include:

·       Applying the Decent Homes Standard to the private rented sector

·       It will become illegal for a Landlords and Agents to have blanket bans on renting to Tenants in receipt of benefits or with children

·       Strengthen local council’s enforcement powers and introduce a new requirement for councils to report on enforment activity.

It is still very early days for the Renters Reform Bill, there are still many stages for this to be passed through parliament with the opportunity for changes, tweaks and amendments to be made. It is important to remember that nothing has changed at present and the above information is likely to be revised as it moves through the process.

I am proud to be a member of the Association of Residential Letting Agents (ARLA Propertymark) who have been (and continue to) be lobbying incredibly hard to ensure Landlords voices and perspectives are heard. As one of the leading professional bodies in the Lettings industry, Landlords can rest assured that Propertymark will be updating us with factual timely information.

As always, we are here for you, so if you have any questions or would like to share your thoughts, we would welcome you to pop in for a coffee or a chat on the phone.

Here at Property Assistant, our Lettings team have a proven track record of effectively managing and maintaining rental properties for our Landlords. We pride ourselves on keeping up to date with new and changing legislation, meaning we can provide our Clients with peace of mind. If you need any help or advice, please do contact us on 01189122370 or lettings@pauk.property