Will the much talked about Renters (Reform) Bill actually happen?

There has been lots of coverage on the Renters (Reform) Bill but it appears that it might not actually pass legislation before the next general election - it could even be dropped like the ‘net-zero’ pledge.

What is the Renters' (Reform) Bill?

The Bill planned to introduce a number of changes with the private rental sector and has been positioned as further helping protect tenants. A short summary is outlined below, and more detailed information can be found in a previous article here.

Three main headlines of the Bill included:

Ban on no-fault evictions.

In 2019, the Conservatives made a manifesto commitment to end Section 21 - this 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 future landlords will only be able to serve notice if they have a ‘valid’ reason such as wishing to sell the property.

Rent increases

These were to be limited to once a year and would require the landlord to give a minimum notice period of 2 months. Rents are currently rising at their fastest for 9 years.

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.

When will these changes take effect?

The bill was introduced to Parliament in May 2023 with a target for Royal assent in June 2024. However, it is yet to reach a second reading in the House of Commons where MPs would debate the legislation. At this moment in time, no one knows when the Bill will be introduced.

Is the delay good news for tenants?

Most would say no, as the legislation was seen to enhance the rights of tenants.

Is it good news for landlords?

The general view is yes and no.

Uncertainty in the market has been one reason why landlords have been selling their rental properties over the past two years. With less rental stock available to tenants, this has been one of the main drivers behind record rent increases.

The delay does however mean that landlords, some would argue, will not face even more bureaucracy when renting properties out.

Will the changes ever happen?

If the legislation is not passed before the next general election there is a chance it will be further changed or indeed be delayed for a considerable period.

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CreditLadder also runs a free mortgage application service in partnership with Tembo which will tell you how much you could borrow.

Remember the information provided in this article is for information purposes only and should not be considered as advice.