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26 May 2023

Dispute Resolution

Public Law and Private Client

Introducing the Renters (Reform) Bill

A potential game-changer for England's private rental sector, the much anticipated Renters (Reform) Bill had it's first reading in the House of Commons on 17th May 2023. Zoe We take a look at what changes could lie ahead.

The Renters (Reform) Bill has finally received its first reading in the House of Commons. This bill holds the potential to reshape the rental landscape and would bring about the most substantial changes to the private rental sector in over three decades.

The Renters (Reform Bill) proposes:

  • Abolishing Section 21: This would pave the way for a tenancy structure where all tenancies become periodic, providing renters with increased stability.
  • Reforming Possession Grounds: Possession grounds will undergo a revamp, including mandatory grounds for cases involving landlords intending to sell or tenants repeatedly falling behind on rent. The usual 2 week notice for serious rent arrears has been increased to 4 weeks.
  • Introducing a Property Ombudsman: A new Property Ombudsman will be established to settle disputes and alleviate the burden on the courts. Private landlords will be required to participate in this scheme.
  • Establishing a Statutory Right to Pet Ownership: Tenants will gain a statutory right to request to have pets in their rented accommodations.
  • Implementing a Digital Property Portal: To enhance transparency and raise awareness of rights and responsibilities for both tenants and landlords, a digital Property Portal will be launched. This portal will also assist local councils in effectively carrying out enforcement duties.

These proposals build upon the Government’s White Paper ‘A Fairer Private Rented Sector’, which was published last year.

The abolishment of Section 21, which previously allowed landlords to recover their properties without grounds, will undoubtedly impact the housing sector. While protecting tenant rights is vital for stable housing, achieving a balance that respects both tenants and landlords is crucial for a healthy rental market.

The elimination of arbitrary evictions through the removal of Section 21 protects tenants from unfair displacements and provides security for vulnerable individuals and families. It grants tenants greater stability and peace of mind, enabling them to establish their lives within their communities.

However, it is important to consider the unintended consequences that may arise from restricting landlords’ ability to reclaim their properties, even with valid grounds for eviction. Extreme difficulties faced by landlords in reclaiming properties due to antisocial behaviour or severe property deterioration, for instance, may deter property owners from investing or renting altogether.

The potential decrease in available rental properties could worsen existing housing shortages and drive-up rental prices. It is crucial to strike a balance between protecting tenant rights and recognising legitimate reasons for landlords to reclaim their properties. Finding this balance is a complex task that requires careful consideration of the needs of both tenants and landlords, as well as the broader dynamics of the housing market. While tenant protection is essential, it’s equally important to establish simple mechanisms that allow landlords to reclaim their properties when valid reasons exist.

As the Renters (Reform) Bill advances, it’s crucial for landlords in England to stay updated and adjust to the changing environment. Gaining a thorough understanding of the new regulations, obligations, and rights that accompany these proposed reforms is essential for navigating the private rented sector effectively.

To reiterate, the Renters (Reform) Bill only applies in England. The Renting Homes (Wales) Act 2016 came in to force on 1st December 2022, changing the way all landlords in Wales rent their properties. You can read more about that here.

At Harding Evans, we are dedicated to keeping landlords informed as the legislation develops and addressing all landlord-related requirements. If you need advice, please contact us today to speak to one of our specialist solicitors.

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