Important Update: Renters (Reform) Bill – Key Changes for Landlords and Investors
Significant changes coming to the private rental sector in England through the new Renters (Reform) Bill. This legislation aims to make renting fairer and more secure for tenants while ensuring responsible landlords can continue to operate efficiently. Here’s a brief overview of the key points you should be aware of:
1. Abolition of Section 21 “No Fault” Evictions The Bill removes the ability for landlords to evict tenants without providing a reason, often called “no fault” evictions. Instead, landlords will need to provide a valid reason for eviction, such as wanting to sell the property or needing to move in. This aims to give tenants more security and reduce the risk of sudden evictions.
2. Comprehensive Grounds for Possession To ensure landlords can still regain possession in certain circumstances, the Bill introduces more comprehensive grounds for eviction. These include persistent rent arrears, anti-social behaviour, and specific situations like property redevelopment or landlord occupation.
3. Rent Control and Backdoor Eviction Prevention The Bill allows tenants to challenge rent increases they believe are above market value, protecting against “backdoor evictions” through excessive rent hikes. Landlords can still increase rent to market rates, but tenants have a right to appeal to an independent tribunal if they feel an increase is unfair.
4. Private Rented Sector Landlord Ombudsman A new Ombudsman service will be mandatory for nearly all private landlords, providing tenants a way to seek redress without going to court. The Ombudsman can compel landlords to issue apologies, take remedial action, or even pay compensation for legitimate complaints.
5. Privately Rented Property Portal Landlords must register their properties on this new portal, providing a ‘one-stop shop’ for guidance on legal obligations. The portal will also give local councils more information to target enforcement against non-compliant landlords.
6. Rights to Request Pets Tenants will have the right to request pets, which landlords must consider and cannot unreasonably refuse. To protect landlords, the Bill allows them to require pet insurance to cover potential property damage.
7. Decent Homes Standard The Bill introduces a Decent Homes Standard to ensure that private rented properties meet basic safety and quality requirements. This standard will be detailed through upcoming regulations.
8. Prohibition of Blanket Bans Blanket bans on tenants with children or those receiving benefits will be prohibited. Landlords must consider each prospective tenant individually, focusing on their ability to afford and sustain a tenancy.
9. Enhanced Enforcement Powers for Local Councils Local councils will have stronger enforcement powers to ensure compliance with these new rules. Fines for non-compliance range from £5,000 for initial or minor breaches to £30,000 for serious or repeat offences.
These changes represent a major shift in the private rental sector, and we encourage you to review your current practices to ensure compliance. If you have any questions or need additional information, please don’t hesitate to contact me.