With the climate for residential landlords on the horizon to change in England and Wales, we answer the common “whats” below regarding the Renters’ (Reform) Bill.
Currently, where an assured shorthold tenancy is in place, a landlord can provide a tenant with two months’ notice to leave the property once their fixed term has come to an end. Landlords are not required to provide their tenants with a reason for the eviction, making it difficult and often impossible for a tenant to challenge a section 21 notice, and therefore somewhat easier for a landlord to get their property back.
This appears set to change with the Renters’ (Reform) Bill and there has long been calls for legislative reform in respect of this.
What is the Renters’ (Reform) Bill?
It is a Bill to “bring in a better deal for renters” to make provisions changing the law about rental homes, including changing the eviction processes that can be used and reforming landlord possession grounds.
What is the current progress?
The Bill is currently going through Parliament, and is currently at its Second Reading. It will follow the usual parliamentary procedure for reviews, checks and balances and will inevitably change as it makes its way through the Houses of Parliament. Subject to receiving approval from both Houses of Parliament, it will then receive Royal Assent and become law.
Whilst there is no specified timeframe on when this will become law, it is more likely this will drift into 2024 rather than the current parliamentary sitting, but only time will tell.
It is also likely that there will be a transitioning period for current assured shorthold tenancies to the new tenancy structure, as well as there being a specific date after which section 21 notices cannot be used.
What will change?
The key changes proposed by the Bill are to:
- Abolish the section 21 eviction process (also known as a the ‘no fault’ eviction)
- Move to a new tenancy structure where all assured tenancies are periodic (i.e. there is no fixed term) providing tenants with more security
- Restrict rental increases to once per year and 2 months’ notice will need to be given to a tenant prior to the increase (which is currently only 1 months’ notice)
- Introduce the legal right for a tenant to request a pet to be permitted at the property, and landlords cannot unreasonably refuse. However, landlords can require pet insurance to cover any damage to the property
- Introduce further and/or more comprehensive grounds for possession under the section 8 eviction process so that landlords are still able to recover their property (e.g. where they wish to sell their property or have close family move into the property) and to make the process easier where the tenant is at fault (e.g. rental arrears or anti-social behaviour).
- A Private Sector Ombudsman will be appointed for private landlords which will provide fair, impartial, and binding resolution to many issues
- A Property Portal to be created to assist landlords in understanding their legal obligations and to allow landlords to demonstrate, more easily, their compliance with it, as well as providing better and more concise information to tenants.
If, as a landlord, you are concerned about how this may affect you and your property, please contact our litigation team, who specialise in landlord and tenant matters and property disputes on 0345 646 0406 or fill in our online enquiry form and a member of our Team will be in touch.