New Renters’ Reform Bill – potential affects for landlords
The new Renters’ Reform bill has been published that will put an end to no-fault evictions and prevent landlords from demanding a blanket ban on pets.
The Government first promised reform for tenants in the private rented sector over four years ago and has now introduced the bill to parliament, setting out its changes in what is being called a “once-in-a-generation overhaul of housing laws.”
The scrapping of Section 21 “no-fault” evictions should give renters more security, and has been widely supported by renting campaigners representing 11 million renters across England.
Liz Shaw, property litigator at Wake Smith Solicitors, looks again at the proposed reforms and how landlords may fare.
This article will cover:
- Proposed reforms
- Who will this affect?
- How does it potentially help landlords?
- How does it hinder a landlord?
- Next steps
- Your next move
Proposed reforms:
The Bill includes the following changes:
- Abolishing Section 21 of the 1988 Housing Act, putting an end to “no-fault” evictions, meaning a landlord can now only evict a tenant if they have a reason, for example antisocial behaviour, unpaid rent, or a need to sell the property
- A new ombudsman to resolve disputes between tenants and landlords
- A new property portal that landlords will have to register with, allowing tenants to view information about their landlord before signing a tenancy agreement
- Tenants being given the legal right to request a pet in their home
- A new Decent Homes Standard that will set minimum standards for the quality of housing
- Making it illegal for landlords and agents to have blanket bans on renting to tenants in receipt of benefits
- At present, under Section 21 landlords can evict a tenant with two months’ notice without having to give a reason. Section 21 is one of the leading causes of homelessness.
According to research by homelessness charity Shelter, an 80 per cent increase was found in the number of people served or threatened with an eviction notice at the end of 2022 compared to 2021.
Who will this affect?
The reform plans will affect 11 million tenants in England and two million landlords.
How does it potentially help landlords?
The Government says the bill also “protects landlords” and will make it “easier” for them to get homes back from anti-social renters when they need to sell a property, move in a close family member or in the event that their tenant has not paid rent.
To help this, notice periods will be reduced where tenants have been irresponsible such as when they have breached their tenancy agreement or caused damage to the property. The exact reduction of notice periods in these circumstances is not yet known.
The number of disruptive and harmful activities that can lead to eviction will be broadened.
Rent increases can still be applied.
A new ombudsman will be established to oversee dispute resolutions while a digital ‘property portal’ will be set up to assist property owners in understanding their obligations.
How does it hinder a landlord?
From a landlords point of view they shouldn’t delay serving notices if they don’t want to be caught by the new legislation and if they still want to exercise their right to possession on a no-fault basis. There could be a rush on landlords serving s 21 Notices thereby increasing homelessness and more pressure on local authorities.
There are real concerns that abolishing the no-fault eviction will be a deterrent to responsible private landlords deciding not to let given these new restrictions resulting in a reduction in available properties for tenants and thereby pushing up rents. Rents will remain unaffordable in areas of high demand. It is argued that properly targeting “rogue landlords” would have been a better way to address most of tenants concerns rather than penalising all landlords.
The bill also seeks to make it illegal for landlords and agents to impose blanket bans on renting to benefit claimants or families with children, and apply home quality standards to the private rented sector.
Tenants will be able to challenge poor landlords without fear of losing their home.
Next Steps
The bill must pass through several stages in the House of Commons and the House of Lords before it becomes law, meaning it may not be passed by the end of the year.
The Government has promised at least six months’ notice between the bill becoming law and the rules starting to come into force.
For further information ask one of our Property Litigation team.
Your next move?
To book an appointment regarding property litigation issues please contact Liz Shaw in the Property Litigation team at Wake Smith Solicitors on 0114 224 2041.
Liz Shaw first highlighted this new bill in July last year – click here to read the article
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