Renters’ Reform Bill and what it means for landlords

The government first introduced the idea of reform within the private rented sector during 2019, followed by the publication of their Fairer Private Rented Sector white paper in June 2022.  The white paper promised the ‘biggest shake up of the private rented sector in 30 years’ while aiming to ‘redress the balance between landlords and private rented tenants’ and to provide ‘greater protections for tenants and homeowners’ but recent reports are emerging that the legislation has been delayed due to ‘procedural issues’.

Dominic Walker, our lettings and property management officer, with experience in the property sector talks us through what changes we might expect to see in future from the Renters’ Reform Bill: 

What changes might we expect to see?

The Renters’ Reform Bill proposes major legislative change for the private rented sector, among the proposals are:

• Abolish Section 21 no fault evictions and deliver a simpler, more secure tenancy structure as well as reforming grounds for possession under a Section 8 notice to make sure that landlords have effective means to gain possession of their property where necessary.
• Rent increases will be allowed once a year but the use of rent review clauses will end. Landlords will be able to increase rent by giving two months’ notice and tenants will have the confidence to challenge unjustified rent increases through the First Tier Tribunal.
• A new private renters’ ombudsman will be created to enable disputes between private renters and landlords to be settled without going to court.
• Providing local authorities with more enforcement powers and abilities to crack down on criminal landlords.
• The introduction of a property portal or register for landlords. The portal will act as a single front door for landlords to understand their responsibilities. Tenants and councils will have access to any information regarding compliance.
• It will become illegal for landlords or agents to discriminate against or have a blanket ban against letting to those in receipt of benefits. The bill will also improve support to landlords who let to people who are on benefits.
• The tenant will have the right to request a pet in their property, which the landlord must consider and cannot unreasonably refuse. Alongside this, there are proposed amendments to the Tenant Fees Act 2019 to include pet insurance as a permitted payment. This means landlords will be able to require pet insurance, so that any damage to their property is covered.

The Bill will need to pass through parliament before dates can be set for the laws to come into effect, which could take several months.