The social climate has been a different place of late, and many recent updates in legislation have created a difficult landscape for those renting privately. In addition to the updated MEES regulations in April and the right to rent checks coming in 2024; the Renters Reform Bill is currently at it’s second reading in the House of Commons.
As one would expect from the title, the bill seeks to give several revisions of the current laws in favour of the renter. A modification of any dynamic like this, means that the other party will lose certain powers, or rights, previously enjoyed.
Due to this, landlords across the nation have been worried at the main three issues, ordered here by severity of change.
The End of Section 21
The government are seeking to remove section 21, creating a more drawn out, and as such costly process. This does, however, coincide with an easier ability to serve a section 8 notice. This Bill will make it so that if a tenant has owed more than 2 months rent for at least a day on three separate occasions, the ground 8 can be met, and the proceedings can begin.
Of course, a landlord will still be able to remove tenants to sell the property they are renting. On the other hand, this will be discretionary of a judge’s decision and evidence will have to be provided inorder to ensure that the older section 21, without cause for reason, is attempting to be utilised.
Abolition of Fixed Term Tenancies
Whilst only affecting a portion of the industry, this has many landlords considering selling up to liquidate assets they have within their property. This is one of the more contentious points of the Bill, especially for those that have built a business around the student rentalsector.
This aspect of the legislation may well change, as the industry is lobbying to retain a 4-month minimum fixed term.
The Right to Own a Pet
Whilst a point of contention for some landlords, but an easy adjustment for others; making it so that those renting out private properties will have to provide reasonable grounds to refuse. Which in turn, will bring with it more costs.
This section of the proposition is likely to not include HMOs due to the nature of multiple different people living within the same property and the dwelling being treated as shared space.
Other changes
The scope of this Bill is quite wide, looking also to reformthe court system to streamline the section 8 process, the banning of rent review clauses in open ended tenancies and new legislation to ban the blanket refusal of tenants on benefits or with children. As an independent landlord these changes can be quite overwhelming, please don’t hesitate to contact us for any guidance going forwards.
Preparation for the upcoming changes
Whilst the planning any landlord will be required to do will change based on the type of tenancies they offer, there are precautions that we recommend all landlords to look into:
- Keep yourself well informed with the below links and see how to Bill makes its way through parliament.
- Review tenancy agreements to ensure compliance with all potential new legislation.
- Ensure that every tenancy is very well documented, especially the financial side should a possession order be required, now the proposed standards are higher.
- Use this transitionary period to educate your tenants of the changes, especially long-term tenants.
- Look into pet policies within tenancy agreements, and request pet insurance be taken out.
- Speak to an organisation such as ourselves, or the NRLA, for any guidance or to help with any concerns you may have regarding this.
Useful resources
The government guide to the bill itself: https://www.gov.uk/guidance/guide-to-the-renters-reform-bill
Parliamentary updates: https://bills.parliament.uk/bills/3462
Further Information
Should you wish to discuss any aspect of the Renters Reform Bill or landlord and tenant law in general, please do not hesitate to contact Bill Dhariwal (E: bill.dhariwal@lawcomm DDI: 01489 864 117) or Sam Nolan (E: sam.nolan@lawcomm.co.uk DDI: 01489 864 177).
The contents of this article does not constitute legal advice. Law correct as at date of publication.
