The Government has introduced a new Renters Reform Bill in what they are calling a “once in a generation” set of reforms as part of the Conservative party’s manifesto pledge set out in 2019.

The Renters Reform Bill is set to bring significant changes to the rental landscape, aiming to improve tenant rights while providing clarity for landlords. Here, we highlight the main points from the bill that landlords need to be aware of to ensure they stay informed and compliant with the upcoming regulations.

Tenancy reform

Fixed-term tenancies are coming to an end and being replaced by periodic tenancies that don’t have an end date. Tenants will be able to leave the tenancy by giving two months’ notice.

Landlords will be limited to one rent increase per year and a new process for implementing this will be established. This will require landlords to complete a form and serve it to the tenant, giving them a two-month notice period before the increase. In cases where tenants believe the increase does not align with the market value, they will have the right to contest it in the First-tier Tribunal.

End of no-fault evictions

Under the new legislation, section 21 ‘no fault evictions’ will be abolished. Landlords will only be able to evict tenants under certain circumstances under section 8 grounds, such as when selling the property or when they or a close family member takes occupancy. However, these evictions can only take place after a minimum period of six months.

Many section 8 grounds will become mandatory, meaning judges would be forced to grant possession if the landlord can prove the ground.

Private rented sector ombudsman

To enhance the resolution of rental disputes, a new ombudsman will be established. This independent body will oversee dispute resolutions, providing a fair and impartial platform for tenants and landlords alike.

Membership will be mandatory and those failing to join may be faced with enforcement action ranging from a civil penalty of up to £5,000 through to a £30,000 fine or criminal prosecution or Banning Order for repeat offenders.

Private rental property portal

The Bill will also introduce a new, digital property portal to help landlords understand their obligations, as well as facilitating smoother and more transparent communication with tenants. All landlords will be legally required to register themselves and their properties on the property portal and could be subject to penalties if they market or let out a property without registering it and providing the required information.

Renting with pets

Tenants will now have a legal right to request permission to keep pets in their rented homes. Landlords must consider these requests and cannot unreasonably refuse them. However, landlords will be able to require pet insurance to cover any potential damage caused by the pets to their property, ensuring protection against unforeseen expenses.

Additional measures

The Renters Reform Bill aims to make it illegal for landlords and agents to impose blanket bans on renting to benefit claimants or families with children. This change aims to promote fair and inclusive housing practices.

Additionally, the Bill will apply the Decent Homes Standard to the PRS for the first time, ensuring that rented properties meet minimum quality requirements, thereby raising overall living standards. The Government has yet to respond to a consultation on the Decent Homes Standard and the timing of the legislation is unclear.

What are the next steps?

The Renters Reform Bill now has to go through the Parliamentary process, with debates in both the Commons and the Lords, but the Government aims to have the bill set in law by the end of 2023.

For more information on the bill, visit the Government website.