Renters Reform Bill

In 2022, the Department for Housing and Communities shared a white paper to set out plans to reform the private rented sector. The focus of the change is to give a tenant a more positive experience, provide decent homes and to provide for dispute resolution. The great majority of landlords already provide decent homes and do their best not to get into dispute with tenants, but the legislation will change, and we all need to be mindful that it is heading our way.

The legislation refers only to Assured & Assured Shorthold Tenancies governed by the Housing Act 1988 and the government is only an exception are student properties that are purpose-built such as halls of residence.

The main headlines are:

Tenancy Agreement

They will be a new tenancy agreement and fixed terms will be abolished. All tenancies will be in affect periodic and continue indefinitely until ended by either party and a tenant will end a tenancy by giving 2 months’ notice. All tenancies will need to be in writing.

Repossession

Section 21 notice “no fault “eviction will be abolished, and new section 8 notice will be needed. Under this there will be 20 grounds on which possession can be sought. Some will be mandatory such as rent arrears and other discretionary as now. From the details given to date, current grounds that allow 14 days’ notice period will double to one month and that the period of notice will be mostly 2 months. The exception will be for anti-social behaviour or having no Right to Rent which will be 2 weeks’ notice.

You will also need to state why you want possession. There will be anew mandatory ground allowing for:

Repeated serious arrears. This will be where a tenant has been in arrear for at least two months at least 3 times in the previous three years.

Selling your property or needing it for immediate family use. If selling you will nee to be aware that you can’t use it for 6 months nor relet withing within 3 months.

They will abolish the deregulation act except for the requiring of the Tenancy Deposit Protection to be undertaken.

Tenants’ Rights

A landlord will not be able to unreasonably ban pets. They will require a good reason such as, not being allowed under the head lease. A landlord will be able to increase the rent to accommodate for pets in so far as it is clearly stated in any advertising of the property and agreed at the outset of the tenancy. A landlord will be encouraged to take out pet insurance and this will add as a “permitted payment” under the tenant fees Act.

A landlord will not be able to ban children/families or those in receipt of benefits. All decision will need to be based on individual circumstances.

Tenants will have the right to challenge landlords’ decisions

Dispute Resolution

A new single Ombudsman is to be appointed to improve the outcome for those in dispute.

It covers all landlord whether they sue an agent or not and will include landlord apologise, provide information, reimburse rent, and pay compensations of up to £25,000. We are waiting more details on how this will work.

Registration

Other announcements in the paper state that:

• Landlord must register on property Portal” that will be new. This will be enforced by local authorities and will incorporate a data base of Rogue Landlord and Agents that will be made available to the public.
• There will be a “Decent Home Standard” to which properties will be required to be met such as space standards.
• Landlords will have to allow a tenant to modify their property so that they can make it their home.
• Finally, they will be no new housing court but a package of reforms that will target the area that cause delays in proceedings.

When is this happening?

The guestimate is at the earliest 2024 but more likely 2025. They propose that it also happens in 2 stages, and they will give 6 months’ notice of the start date. They will then allow at least 12 months between the first and second dates to allow tenancies to transit over.

Given the changes that are coming, it is probably wise as a landlord to engage an Agent to navigate these for you.