The Renters (Reform) Bill

The Government’s promised plans to reform the rented housing sector was introduced to Parliament on 17 May 2023.  The aim is to balance the needs of both landlords and tenants and provide much needed flexibility in what is a vital part of the housing market.

A good or bad thing?

Depending on your standpoint the current situation can favour “unscrupulous landlords” or “tenants from hell” – the extremes, but nevertheless cause problems for both sides.  Therefore any changes which will help to simply the process for everyone and protect both sides is to be welcomed, but as ever, the devil is in the detail.   Therefore we will watch with interest how the Bill progresses through parliament and what the final version will be.

When will the changes come in?

It is early days, as the bill is not at committee stage yet, so there is currently no date for any new law to come into force.  This means it will be difficult for landlords – who may be considering whether they need to retain possession of a property they currently let – to decide whether to take action now.  Tenants will also continue to face uncertainty.  The presentation of the Bill is just the start of the process.  Nothing will change soon.

The current law

If a landlord wishes to regain possession of a property let under an Assured Shorthold Tenancy (AST), they have two choices – the s21 process (sometimes referred to as “no fault evictions”) or the s8 process (usually where there is fault of some part on the tenant – eg rent arrears or anti-social behaviour).

The current law is complicated, due to numerous amendments to the Housing Act over the years, and various different Regulations.  It can therefore be somewhat of a minefield for both landlords and tenants to know what their rights are and what to do if there are problems.

The new Bill does not replace the 1988 Act – instead it amends it further, but with the aim of having just one process for evictions (a modified s8).  It will also introduce other measures.

What are the planned changes?

The Renters (Reform) Bill and other planned Bills include the following:-

• All assured tenancies will be periodic, running from (usually) month to month from day one.
• No initial 6 month fixed term, meaning no more “Assured Shorthold Tenancies/ASTs”.
• Tenants can give 2 months’ notice from the start, so they are not committed to staying for 6 months.
• Abolish s21 “no fault” evictions.
• Modify s8 grounds to include option for landlords to regain possession if they wish to sell or move in a close family member.
• Some of the s8 grounds cannot be relied on until after the tenant has been in the property for 6 months.
• Making it easier to repossess for anti-social behaviour or repeated rent arrears.
• Provide protection against excessive rent increases designed for force tenants out.
• Introduce a Private Rented Sector Ombudsman to provide decisions in certain cases to avoid using the Court system
• Where the Court systems is needed, make it more streamlined and digital
• Create a Private Rented Sector Portal to help landlords and tenants understand their obligations and rights.
• Apply the Decent Homes Standard to privately rented homes.
• Allow tenants to request the right to have a pet – which the landlord cannot unreasonably refuse. The tenant will be required to insure the pet to cover damage to the property.
• Prevent landlords from having a blanket ban against tenants in receipt of benefits, or those with children.
• Strengthen the enforcement power of local councils

Landlords – what to do now

Even if you are not considering terminating your current tenant’s tenancy, it is really important that you review that tenancy to ensure that you are complying with the current laws – it is surprising just how many landlords are not!

That way you can be sure that going forward everything is in place and that if your circumstances do change so that you do need to get the property back there will be no unnecessary delays.  You can also rest assured that you are complying with your legal requirements, giving you confidence in your position.

How we can help

We can carry out an “audit” of your tenancy documents and let you know if there is anything you can, or must, do to bring everything in line with current legislation.  And you will be better placed once the new changes (whatever they may be) eventually do come into force.   Contact Suzie Fisher  or Asaph Glass for further details.

This article does not constitute legal advice and is correct at the time of publishing.  For specific advice on your circumstances, please contact us.