You may have seen lots of recent media coverage on the Renters (Reform) Bill but what exactly is it, and how will it impact you?
The Renters (Reform) Bill has been introduced to Parliament.
The Bill aims to introduce a number of changes with the private rental sector and has been described as a ‘once in a generation’ overhaul aiming to protect tenants.
It is important to note that the recommendations are not yet law and only apply to England. MPs will have the chance to debate the Bill at a second hearing with the Government stating they plan to introduce their plans ‘at the earliest opportunity’
So what areas does the Bill cover?
The Bill includes a number of reforms and we’ve highlighted some of the main planned changes and what they might mean for tenants and landlords.
Ban on no-fault evictions
At the heart of the Bill is the banning of Section 21.
Section 21 is the process by which landlords serve notice on tenants when they wish to take a property back. When this notice is served, tenants have two months to leave the property.
In the future landlords will only be able to serve notice if they have a ‘valid’ reason such as wishing to sell the property.
Rent increases
Landlords will only be able to increase rents once a year and will need to give a minimum notice period of 2 months.
Tenancy length
Minimum contract lengths for tenants plan to be abolished although a minimum notice period of 2 months will still be required to be given.
Pets
Tenants will be able to request permission to have a pet in their home and a landlord will not be able to unreasonably withhold consent.
Tenants will need to provide confirmation in writing that they have taken out pet insurance or that they will pay the landlord for damage caused.
Landlord register
A landlord register is planned for all landlords, with membership being compulsory. This means all landlords in England will need to register regardless of whether they rent through an Agent or directly to tenants.
Bans on renting to families with children or those on benefits.
This doesn’t currently form part of the Bill but it is anticipated it will be introduced by the Government in the near future.
When will these changes take effect?
Bills have a passage and commence in the House of Commons as a ‘first reading’. The first reading for this Bill took place on May 17th, 2023.
It is difficult to say how long the Bill will take to pass into law or if further amendments will take place ahead of becoming law.
Is it good news for tenants?
The general view is yes. Tenants will have much more flexibility when it comes to renting both in terms of contract length and also the ability to keep pets.
Is it good news for landlords?
The verdict from landlords seems much less positive. On top of a number of recent changes that have meant some landlords are paying tax whilst making a loss, the proposed Bill offers less certainty to landlords whilst adding additional cost and administration burden. It is expected that landlords will continue to sell up which may mean less properties available for rent.
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Remember the information provided in this article is for information purposes only and should not be considered as advice.
