Last week, there was an important new development that could impact tenants and landlords across the UK – as the long-awaited Renters Reform Bill was finally introduced to parliament.
It’s been a long time coming! The bill was first announced by Theresa May’s government in 2019 – with the main stated goals of the bill to make life better for tenants and improve housing quality across the UK.
There’s some good news for landlords too – as the bill strengthens their ability to repossess a property and evict tenants due to bad behaviour.
Here’s what’s happening
Renters Reform Bill – The Proposal
So, what’s in the Bill? Last June, the government detailed their proposals for the Bill in a white paper. Here are some key points:
Decent Homes Standard
The Bill aims to ensure that all homes in the private rented sector are safe and decent by applying the Decent Homes Standard to the private rented sector.
No More ‘No Fault’ Evictions
It plans to replace the old ‘Section 21’ evictions with a modernised tenancy system. This would lead to a simpler tenancy structure and a reform of the grounds for possession.
Easier Dispute Resolution
The introduction of an Ombudsman will make it quicker and cheaper to resolve disputes between tenants and landlords, reducing the need for court visits.
Digital Support
The Bill proposes a more efficient digital Court service and a new digital Property Portal to help landlords understand their legal responsibilities.
Stronger Enforcement Powers
Local councils will be given more power to act against private landlords, and will also need to report on their enforcement activity.
Positive Renting Experience
The Bill plans to ban discrimination against families with children or benefit recipients. It also proposes that landlords cannot unreasonably withhold consent if a tenant requests a pet. Landlords will still be able to require tenants have pet insurance to cover any potential damages.
More Support for Responsible Landlords
Landlords will also be given more powers for possession. If there’s a good reason for a landlord to take back their property, the Bill strengthens the grounds for possession.
Implementing the Renters Reform Bill
So, how are these changes planned to be rolled out? Here are the key proposals currently on the table:
Councils to Get New Enforcement Measures
To protect tenants, local councils will be able to fine landlords who try to harass or evict tenants illegally. The authorities will be able to issue Civil Penalty Notices to any landlords who break the new rules introduced by the bill.
- End of Section 21 Notices
There will be no more ‘no fault’ evictions. Landlords will only be able to use ‘fault-based’ grounds and ‘reasonable circumstances’ when evicting tenants and taking possession. - Significant Changes to Section 8
New mandatory grounds for possession will be introduced, and there will be changes to the existing rules around rent arrears evictions (up from 2 weeks to 4 weeks).
The new grounds will include cases of serious rent arrears and situations where landlords need to sell their property or move in themselves. There are some additional grounds being proposed for supported and temporary accommodation as well. - No More Fixed Term Tenancies
In one of the biggest changes, the Bill proposes to scrap fixed term tenancies. The current 6 month initial term will be scrapped, and all new and existing tenancies will be periodic and on a rolling basis from day one. This, when combined with the removal of ‘No Fault’ evictions should provide tenants will greater long term security. - Tenants’ Notice Period
Tenants will be able to give notice on a tenancy at any point, and will have to provide two months’ notice. - New Court Processes Introduced
The Bill includes plans to reform the court process to make it more efficient. Plans include increasing the number of County Court Bailiffs, digitising the process, increasing mediation resources and utilising the Ombudsman to free up court time.
The idea here is to speed up possession proceedings for the benefit of both landlords and tenants.
Looking after tenants and landlords at CJ Property
At CJ Property, we specialise in matching responsible landlords and tenants – helping people to find the right, high quality, well maintained rental property across Hull and East Yorkshire.
We believe this legislation is long overdue – and if implemented, should deliver benefits to both landlords and tenants. There is still some way to go until it becomes law – and we’ll be keeping a close eye on proceedings.
If you’d like to know more about the legislation and how it might affect you, please give us a call on 01482 645270 today.
