RENTERS REFORM BILL INTRODUCES SIGNIFICANT CHANGES TO PRIVATE RENTAL SECTOR IN ENGLAND

Tuesday May 23, 2023

In a significant move aimed at enhancing the safety and fairness of the private rented sector, the Renters’ Reform Bill has finally been introduced to the Parliament in England. The long-awaited bill not only bans no-fault evictions but also includes several other measures to benefit renters. With a focus on increasing the quality of homes, the bill aims to address the current issues faced by renters and establish minimum housing standards. Landlords, too, will experience some changes that streamline their rights and facilitate property recovery. The bill aligns with the government’s commitment to create a fairer and more secure renting environment for the estimated 11 million people residing in the private rented sector.

 

Ban on No-Fault Evictions:

Section 21 ‘no fault’ evictions will be prohibited, empowering renters to challenge problematic landlords without the fear of losing their homes.

 

Enhanced Protections for Renters:

Renters will have stronger safeguards against backdoor evictions and the ability to appeal excessive rent hikes designed to force them out of their homes.

A two-month notice period will be mandatory for rent increases, and renters can appeal to a tribunal if they believe their new rent exceeds the market rate for their property.

 

Legal Right to Have Pets:

Renters will possess a legal right to request keeping pets in their homes, and landlords must consider these requests reasonably. However, landlords may require renters to obtain pet insurance to cover any property damage.

 

Minimum Housing Standards:

The bill extends the Decent Homes Standard, currently applicable to the social rented sector, to the private rented sector for the first time. Landlords must ensure their properties meet these minimum standards to ensure habitability.

 

End to Discrimination:

Blanket bans on renting to individuals receiving benefits or having children will be made illegal, promoting fair and equal access to rental properties.

 

Transition to Periodic Tenancies:

All renters will be moved to a single system of periodic tenancies, simplifying rental agreements and promoting consistency.

 

Strengthened Council Enforcement Powers:

Local councils will have their enforcement powers bolstered, enabling them to target criminal landlords effectively. Additionally, councils will be required to report their enforcement activities.

 

Private Rented Sector Ombudsman:

A new Private Rented Sector Ombudsman will be established, providing quicker and cost-effective resolutions to disputes between landlords and renters. Landlords will be obligated to join the ombudsman, who will have the authority to compel landlords to take remedial actions and provide compensation.

 

Digital Property Portal:

A digital Property Portal will be introduced, assisting landlords in understanding their obligations and demonstrating compliance, while also helping renters make informed decisions about their prospective landlords.

 

Reaction and Implications:

Consumer groups have warmly welcomed the introduction of the Renters’ Reform Bill, recognizing its potential to improve the lives of the approximately 11 million individuals renting from private landlords in England. The elimination of arbitrary Section 21 evictions will alleviate the stress associated with renting and foster better communication and trust between tenants and landlords, according to Dan Wilson Craw, acting director at Generation Rent. Furthermore, the bill addresses the pressing issue of inadequate housing conditions in the private rented sector, where a quarter of homes fail to meet basic decency standards.

 

Implications for Landlords:

While the bill primarily focuses on enhancing protections for renters, it also includes measures to streamline the process for landlords to recover their properties if needed. This includes scenarios such as selling the property, accommodating close family members, or when tenants are persistently non-compliant with their tenancy agreements by not paying rent. Landlords will have clearer guidelines and procedures to follow in these situations, making it quicker and easier for them to regain possession of their properties.

Additionally, the bill acknowledges the rights of landlords to increase rents to market prices for their properties, ensuring a fair balance between landlords’ interests and the affordability for tenants.

Ben Beadle, chief executive of the National Residential Landlords Association, expressed support for the government’s commitment to enabling landlords to swiftly recover properties from anti-social tenants and those failing to pay rent. The digitization of court hearings is expected to improve the efficiency of legitimate possession cases.

The Renters’ Reform Bill aims to address the challenges faced by renters and establish a more equitable renting environment, while also providing landlords with clearer rights and processes. By promoting better standards, fairness, and communication between landlords and tenants, the bill seeks to create a positive and secure private rented sector for all parties involved.