Renters’ Reform Bill introduces big changes for tenants and landlords

Which? looks at the details of the Renters’ Reform Bill, which introduces big changes for both tenants and landlords, as modernisation of the property renting system will impact 4.5 million households.

Long-awaited plans to shake up the private rented sector in England have been unveiled by the government following years of speculation.

The Renters’ Reform Bill aims to help 11 million tenants benefit from ‘safer, fairer and higher quality homes’.

Changes include a ban on no-fault evictions and improving the rights of tenants to have pets.

Here, Which? explains what the major reforms mean for landlords and tenants. 

‘Landmark reforms’ for renters and landlords

The wide-reaching reforms have been described by the government as a ‘once-in-a-generation overhaul’ of housing law. 

Levelling Up and Housing Secretary Michael Gove said:

“Too many renters are living in damp, unsafe, cold homes, powerless to put things right, and with the threat of sudden eviction hanging over them.  

“This government is determined to tackle these injustices by offering a new deal to those living in the private rented sector; one with quality, affordability, and fairness at its heart.”

What’s in the reforms of the Renters’ Reform Bill?
    • Ban on no-fault evictions 

The backbone of the bill is a ban on landlords evicting tenants who have done nothing wrong. 

A long-running issue has seen landlords use Section 21 of the Housing Act to break contracts in order to bring in new tenants paying higher rent. 

The abolishment of no-fault evictions was a Conservative manifesto pledge back in 2019, so the bill has been a long time coming.

The government says the changes will ’empower renters to challenge poor landlords without fear of losing their home’.

Find out more here. 

    • Repossessions for missed rent or antisocial behaviour

It is set to be made easier to evict tenants for antisocial behaviour and those who repeatedly miss their rent payments.

The bill will ‘broaden’ the disruptive and harmful activities that can lead to eviction and make it quicker to evict a tenant acting antisocially.

Notice periods will be reduced where tenants have been irresponsible – for example breaching their tenancy agreement or causing damage to the property.  

New repossession grounds are also set to be introduced for landlords who wish to sell their property, or want to move themselves or family members into it. 

Find out more here. 

    • Tenants given more rights to keep pets

Under the bill, tenants will have the right to request to keep a pet in their rented property.

Landlords will be expected to consider all requests and won’t be allowed to unreasonably refuse them. If they do so, the tenant will be able to challenge the decision. 

Tenants with pets may be required to take out suitable insurance to protect the landlord’s property from damage.

    • New ombudsman to resolve disputes

The government plans to create a new ombudsman responsible for enforcing the sweeping policy changes and resolving low-level disputes between tenants and landlords at a faster rate, without the need to go to court. 

Currently, only letting agents are required to join an ombudsman scheme.

    • Registering to a property portal 

A new online property portal is envisaged to provide a hub of rental information aimed at both tenants and landlords.

It should enable landlords to understand their legal obligations and help tenants make better decisions when signing a new tenancy agreement.

Find out more here. 

What further legislation is set to come later?
    • Better standard of homes

Legislation on making rented homes abide by the Decent Homes Standard is not part of the bill, but is expected to be brought forward soon.

The standard – which stipulates how properties must be free from serious health and safety hazards – only currently applies to the social housing sector.

    • Increased rights for families with children and those on benefits

The government hopes to make it illegal for landlords or letting agents to have blanket bans on renting to families with children or those in receipt of benefits.

Listings advertised as ‘no DSS’ –  which prevent anyone on universal credit, housing benefit, disability benefits or tax credits from applying –  are currently common. The government says everyone should have access to safe and secure housing, regardless of whether they are receiving benefits.

Households with dependent children make up 30% of the private rented sector, and 26% of those receive housing benefit to help with rent payments.

    • Greater enforcement powers

The government also plans to strengthen councils’ enforcement powers and introduce a new requirement for local authorities to report on enforcement activity. This is hoped to crack down on criminal landlords.  

What happens next?

The bill will need to pass through parliament before becoming law. 

With the government’s proposals now revealed, it will start its journey through the House of Commons and House of Lords, before receiving Royal Assent which is when it formally passes into law.

This process will likely take months, so the reforms may not be implemented until 2024.

 

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Main article photo courtesy of Pixabay