Last week, Deputy Prime Minister and Housing Secretary, Angela Rayner, oversaw the 2nd reading of the new ‘Renter’s Reform Bill’ in the House of Commons.
The bill aims to ‘level the playing field’ between landlord and tenants and provide tenants with more security in their rental accommodation, without fears of being handed Section 21 notice.
Angela Rayner said “I am determined to get this Bill into law as soon as possible. The thousands of children and families living in unsafe housing or under the cruel threat of a Section 21 eviction notice have been waiting far too long already.
We will deliver on our promise to renters and transform the sector into one where families can put down roots, where children can grow up in healthy homes, and where young people can save for their future.”
So what does the new bill entail, and what do you need to know as a landlord?
As mentioned above, once passed, Section 21 (no fault evictions) will be abolished and landlords will no longer be able to evict tenants without giving a reason. Instead, they must present a valid justification, such as rent arrears or damage to the property, in order to reclaim possession.
This decision has raised questions regarding how the courts will process claims if they are dealt with an influx of cases.
It’s important to note however, that the government has said that tenants will get ‘a quicker resolution over disputes, cutting down on the need to go through the courts through a new Ombudsman service.’ Furthermore, they also state that they will ‘ensure that the necessary changes to court processes and systems are made, so that they are prepared for our reforms.’ Alongside possible plans to prioritise serious cases such as anti-social behaviour in court proceedings.
Another key measure in the bill is that tenants will also have the right to request a pet in the property, and landlords must consider the request reasonably, without unjust refusal. However, in order to mitigate potential risks, landlords will have the option to require tenants to obtain pet insurance to cover any property damage.
In a move designed to ‘provide greater security for tenants’, the bill will end fixed-term tenancies and move to “rolling” periodic tenancies. This means that tenants ‘will be able to stay in their home until they decide to end the tenancy by giving 2 months’ notice or the landlord can evidence a valid ground for possession.’ As well as this, tenants won’t be able to end a tenancy within the first six months, unless the landlord agrees they can so that landlords are searching for new tenants constantly.
Consistent and significant rent increases are also set to be off the table for landlords with increases in rent only permitted once per year, in line with market rates. This also must be communicated with the tenants with a minimum of two months notice.
With any new legislation, comes lots of questions and queries.
We’re here to help.
If you’ve got a question about the bill, or how it might impact your rental portfolio, please feel free to get in touch with us and our team would be delighted to assist you.
