The Renters’ Reform Bill was introduced to Parliament on 17 May 2023, and now it has gone through the second reading in the House of Commons.
A summary from House of Commons Library:
What would the Bill do?
- The grounds on which landlords can seek to repossess properties would be amended and strengthened. The aim is to make it easier for landlords to repossess properties where tenants exhibit anti-social behaviour or repeatedly build up rent arrears.
- A process would be introduced for implementing annual rent increases. First-Tier Tribunals will determine market rents if a tenant appeals against a landlord’s proposed increase.
- A new independent Ombudsman would be established for the PRS.
- A new PRS Property Portal would be established so tenants, landlords and local councils can access the information. One aim of the portal is to help local authorities target enforcement activity where it is most needed.
- Landlords would be required to consider tenants’ requests to keep a pet. They would not be able to refuse such a request unreasonably. Landlords would be able to require pet insurance to cover related property damage.
–
Section 21 “no fault” evictions to be abolished
The bill confirms plans to abolish section 21 – a process that enables private landlords to repossess their properties by evicting a tenant. The landlord does not need to give a reason to give notice, hence the dub “no-fault eviction.” Instead, landlords will only be able to evict a tenant under reasonable circumstances.
–
A single system of periodic tenancies
The bill confirms the government’s ambition to simplify existing tenancy structures. All Assured Shorthold Tenancies (e.g. six, 12, or 24-month contracts) will move onto a single system of periodic (“rolling”) tenancies. All tenancies will instead roll by every month, with no specified end date.
–
Notice periods for rent increases to be doubled
Rent increases will be limited to once per year and the minimum notice landlords must provide of any change in rent will be increased to two months.
–
Tenants given more rights to keep pets in properties
The Renters (Reform) Bill outlines that tenants can request permission to pet in their home and that landlords cannot unreasonably withhold consent.
–
A new ombudsman covering all private landlords
Landlords will be required to join a government-approved ombudsman, regardless of whether they use a letting agent.
A landlord redress scheme would enable a former or current tenant to be able to make a complaint against a landlord, which would then be independently investigated.
WHAT POWERS WOULD THE OMBUDSMAN HAVE?
The ombudsman would have powers to “put things right for tenants”, including compelling landlords to issue an apology, provide information, take remedial action, and/or pay compensation of up to £25,000. The government also intends for the ombudsman to be able to require landlords to reimburse rent to tenants where the “service or standard of property they provide falls short of the mark”. The ombudsman’s decision will be binding on landlords, should the complainant accept the final determination and failure to comply with a decision may result in repeat or serious offenders being liable for a Banning Order.
–
New Property Portal for private landlords and tenants
A new digital property portal will be introduced to “provide a single ‘front door’ to help landlords understand, and demonstrate compliance with their legal requirements.”
The government says that “too often tenants find out too late that they are renting a substandard property from landlords who wilfully fail to comply, and councils don’t know who to track down when serious issues arise.”
–
