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0:02 AM, 2nd November 2023, About 6 months ago 102
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Not sure what’s in the Renters’ Reform Bill? We’ve rounded up everything you need to know about the long-awaited bill below and will continue to keep updating the guide as we get more clarification.
The government claim the reforms will help 11 million tenants across England benefit from “safer, fairer and higher quality homes thanks to a once-in-a-generation overhaul of housing laws.”
The new bill also claims it will ‘protect’ more than two million landlords by making it easier for them to recover properties when they need to – so they can sell their property if they want to, move in with a close family member, or when tenants willfully do not pay rent.
The Bill has now been published and can be viewed here
The government has confirmed that it will delay abolishing Section 21 until it improves the court system for handling legitimate possession cases by landlords.
The announcement by the government gave no indication of how long the delay would be.
Student landlords will be pleased to hear that there will be a new ground to repossess properties annually to protect the student housing market.
The government said in a Levelling Up Committee’s report on reforms to the PRS: “We recognize that the student market is cyclical – and that removing section 21 will mean landlords cannot guarantee possession each year for a new set of tenants.
“Having engaged across the sector, we understand the cyclical model is critical for landlords’ business models and ensures a timely and robust supply of student accommodation.
“We will therefore introduce a ground for possession that will facilitate the yearly cycle of short-term student tenancies. This will enable new students to sign up to a property in advance, safe in the knowledge they will have somewhere to live the next year.”
Under the proposed Renters’ Reform Bill, fixed-term tenancies would be banned, and periodic tenancies would be introduced across the private rental sector.
The government said in a Levelling Up Committee’s report on reforms to the PRS: “We believe retaining fixed terms would unfairly lock students into contracts, meaning they could not leave if a property is poor quality, or their circumstances change. Student tenants should have the same flexibility as others.”
The government has instead proposed introducing a new ground for possession for student tenancies so that landlords can serve notice to coincide with the academic year.
Since the bill has been published the government have offered some more clarification regarding pets.
The Renters Reform Bill says landlords will be required to fully consider all requests for a pet on a case-by-case basis.
A landlord must give or refuse consent in writing on or before the 42nd day after the date of the request, although there are some exceptions detailed in the Bill.
The government have provided some updated guidance on landlords refusing a pet in a rented property.
The Department of Levelling Up, Housing and Communities response to the Select Committee report gave examples of the factors which they anticipated landlords would take into account when making their decision.
The government said: “We anticipate that landlords will take into account a number of factors when making their decision. This might include the size of the pet and the property; whether the property or common areas are shared with other tenants; allergies or phobias and, if relevant, access to outdoor space.
“A landlord could likely refuse if, for example, the animal was clearly too large for a small property, or if another tenant in a shared house had an allergy or phobia.”
Landlords will be able to require pet insurance to cover any damage to their property.
Tenants also pay a tenancy deposit which can be used for damages although landlords should not attempt to recover costs twice for the same damage.
If a pet damages a property and the insurance and deposit do not cover the cost of the damage, the bill says a landlord could take the tenant to court to recoup additional funds in line with wider rules in the sector.
Landlords will be able to end a tenancy in specific circumstances defined in law. The grounds for possession are outlined here:
Table 1: Reformed grounds for possession
| Ground | Explanation | Notice Period | Mandatory or discretionary |
| Moving in | The landlord or their close family member wishes to move into the property. | 2 months | Mandatory |
| Selling | The landlord wishes to sell the property | 2 months | Mandatory |
| Student accommodation | In the 12 months prior to the start of the tenancy the property has been used to house students. This can be used by educational establishments and PBSA only. | 2 weeks | Mandatory |
| Mortgage repossession | The property is subject to a mortgage and the lender exercises a power of sale requiring vacant possession | 2 months | Mandatory |
| Superior lease ending | The landlord’s lease is under a superior tenancy that is terminated by the superior landlord. | 2 months | Mandatory |
| Selling (rent-to-buy) | The landlord is a private registered provider of social housing and there is a rent-to-buy agreement | 2 months | Mandatory |
The full list covering all circumstances a landlord might reasonably expect possession can be found here
Where a landlord seeks possession using section 8 grounds, the process to end a tenancy will be similar to the current process of using section 21.
Landlords will need to serve the notice on the prescribed form to their tenant with the required notice period. Landlords will need to go to court if a tenant does not leave and provide evidence that the ground applies.
The government have published updated guidance
New grounds for student tenancies
The government announcement on 20 October stated: “landlords must be able to guarantee possession each year for a new set of tenants, and we will introduce a new ground for possession to facilitate this.” No word yet on whether the ground will be mandatory.
New grounds for Revised Mandatory Ground 1: Occupation as principal home for landlord or family
New Mandatory Ground 8A: Repeated Rent Arrears
In the new system, all rent increases will be via one mechanism which replicates the existing section 13 process. This will require a landlord to complete a simple form, which will be published on GOV.UK, and serve it on the tenant with 2 months’ notice.
Once the form is served, the landlord will not have to take further action. If the tenant accepts the proposed rent increase, they simply need to pay the new amount on the next rent day.
A tenant can dispute the increase through referring a case to the First-tier Tribunal, if they think it is above market rate. This must be before the starting date of the proposed new rent and tenants should notify their landlord that they are doing so.
The government have updated the guidance saying landlords will only be able to increase rents once a year. The government have said they will issue guidance in due course to make sure it is clear for everyone.
The Renters Reform Bill will make it illegal for landlords and agents to have blanket bans on renting to tenants in receipt of benefits or with children.
Rachel Maclean, Minister of State for Housing and Planning, said during the second reading of the Renters’ Reform Bill the government are committed to ensuring no family is unjustly discriminated against when looking for a place to live.
She said: “I was asked about blanket bans on benefit claimants and families with children, and I make it very clear that we are committed to outlawing the unacceptable practice of such blanket bans. We are carefully considering how to get these measures right.
“This is a significant reform, as I think all Members understand. We must do it in the right way, while ensuring that landlords rightly have the final say on who they rent their properties to.”
Landlords will get a new digital Property Portal to understand their obligations and help tenants make better decisions when signing a new tenancy agreement.
The proposed bill introduces a digital database called the “Rented Property Portal” in which each landlord and dwelling will be required to have a unique entry.
Landlords must have active entries on this database before they can market a property for rent, and landlords will be responsible for covering the operational costs of the database.
The guidance says a number of new offences will be introduced relating to the PRS database, including knowingly or recklessly providing material false or misleading information.
It will also be added to the list of offences that can enable a tenant to obtain a rent repayment order under Section 40 Housing and Planning Act 2016.
The DLUHC response to the Levelling Up Select Committee said that they expected the penalty system to be “tiered”, with different penalties for different offences.
The government have not provided any more information on how the property portal will operate.
All landlords will be legally required to join the new Ombudsman scheme. At the moment the government is still exploring options for which organisation will take on the role of Ombudsman.
The Ombudsman will be introduced as soon as possible after Royal Assent
The government say: “As a minimum, landlords will be asked for their name, contact information, address, and private rented property details. We are exploring ways for landlord sign-up to align with registration on the Privately Rented Property Portal, so landlords are only required to submit the same information once.”
If a landlord breaches their ombudsman membership requirement, they can be fined up to £5,000 by the local council. If a landlord repeatedly breaches the requirement, they may be fined up to £30,000 and could face criminal prosecution and a Banning Order.
Landlords who use an agent to manage their property will still be required to join the scheme. The Bill says: “Landlords who use managing agents are still responsible for their own behaviour and still retain legal obligations to tenants – particularly around standards and repairs.
“Tenants should be able to seek redress against a landlord when the landlord is at fault, regardless of whether a managing agent is used.”
Only tenants will be able to complain to the Ombudsman. The government says: “While not offering redress for landlords, we are exploring the possibility for the Ombudsman to offer mediation services to landlords to help them resolve their disputes with tenants.”
Letting agents will not be required to join the Ombudsman scheme.
The decent homes standard will be extended to the PRS for the first time.
Introduced in the early 2000s the standard requires all social housing must be free from serious health and safety hazards.
The government says introducing the decent homes standard to the PRS will give renters higher quality homes.
“We will give renters safer, higher quality homes and remove the blight of poor-quality homes in local communities. This will help deliver the government’s Levelling Up mission to halve the number of non-decent rented homes by 2030.”
The government have not confirmed when the decent homes standard will be introduced in the PRS.
The Renters’ Reform Bill will also strengthen councils’ enforcement powers by introducing a new requirement for councils to report on enforcement activity – to help target criminal landlords.
The government have not provided a timescale for when these enforcement powers will happen.
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Reluctant Landlord
11:18 AM, 25th May 2023, About 11 months ago
Reply to the comment left by Beaver at 25/05/2023 - 10:58
until the tenant realises the time its going to take for the tribunal to make a judgements and in between they are still required to pay the rent???
Do tenants have to time to go through all this?
The new bill proposes...The Tribunal will assess the proposed rent against what the landlord could expect to receive if letting to a new tenant on the open market. The Tribunal may determine that this is higher than the proposed rent in the section 13 notice.
So thats the LL angle here - issue the S13 and state that (as is the case now) if the tenant wishes to challenge the increase, a tribunal can also up the rent as well as reduce it. That is the risk the tenant faces. Lets see how many really bother...
Beaver
12:09 PM, 25th May 2023, About 11 months ago
Reply to the comment left by DSR at 25/05/2023 - 11:18
OK. That's helpful experience. For many landlords they have limited experience of tribunals (I have none).
Clearly the bigger landlords will already know how to work the tribunal system in their favour. Us smaller landlords won't.
Judith Wordsworth
14:01 PM, 25th May 2023, About 11 months ago
Reply to the comment left by Angela Angela at 18/05/2023 - 07:31
If enacted the Renters Reform Bill is not standalone legislation it amends the Housing Act 1988, as amended by HA 1967 & 2004, the Protection from Eviction Act 1977. the Housing and Planning Act 2016, the Local Government and Housing Act 1989, the Tenant Fees Act 2019
Wendy Prince
10:26 AM, 9th June 2023, About 11 months ago
If you will not be allowed to discriminate against people receiving benefits/allowances, what happens as most buy to let mortgages don’t allow them?
Dylan Morris
10:57 AM, 9th June 2023, About 11 months ago
Reply to the comment left by Wendy Prince at 09/06/2023 - 10:26
Who knows ? I suppose you could contact your lender just before putting your property on the market and ask them. Their response (get it in writing) would be interesting.
Reluctant Landlord
14:43 PM, 26th June 2023, About 10 months ago
not sure what use it will do but I cant let this lie. If everyone else does the same and soon, it could make a difference!
Just pinged an email off to my MP. NRLA are issuing a 'template' to use. I've added more in to make it a bit more obvious - lets see what my MP comes back with...
Mr X,
As a responsible landlord living in your constituency, I am aware of the Renters (Reform) Bill, which will make fundamental changes to the way private rented properties are let and managed, once implemented. I support some of the provisions but would like to draw your attention to a number of real concerns I have.
My main concern is that court reform will not be prioritised before no-fault possessions (commonly referred to as Section 21/S21's) are abolished.
I simply have no confidence that the current system will be able to cope with the volume of cases that it will need to deal with if S21 is repealed without any change to court processes and resources. I have had to issue S21's myself and the court processing times are horrendous. This adds undue stress, and costs the Landlord, and also other affected tenants/neighbours.
While the common held assumption is that S21's are 'no fault' and therefore possession proceedings are initiated for 'no reason' - this could be no further from the truth. If the landlord is receiving the rent on time, and the property is being looked after, there is no reason to give notice. But what about anti-social issues, refusal to pay the rent or significant damages to the property? Then swift and timely action IS needed by the Landlord and which is where currently a S21 can be a useful tool to gain possession back from a rogue tenant and restore 'quiet enjoyment' to the neighbours.
Alongside a review of the system and the court processes to adapt to the proposed changes in the Bill, the Government must establish a definition of 'low-level' anti-social behaviour and develop guidance for the courts on when timely possession is justified. Firm principles need to be established on how local authorities and the police will support responsible landlords in tackling anti-social behaviour when it occurs. We simply cannot do this, nor be expected to do this on our own.
Without these and further assurances that also balance out the rights and needs of Landlords then for many the risk will be too high. I note the Bill itself is called the 'Renters Reform Bill' - I see no equal weighting in that title, and it serves only to distort any non-bias claim.
Uncertainty makes for instability, a situation that the housing market can little afford as you will no doubt agree. Many landlords (including myself) have already sold properties. The situation will worsen if/when others deem the risk too high. These issues need to be addressed now. Without clarity, others will follow. Where is the new rental accommodation coming from if these properties are sold?
I feel strongly that some aspects of the proposals in the White Paper are impractical and will directly result in a reduction of available private rented property at a time when demand already far out-strips supply. According to Zoopla, demand for homes in the private rented sector across the UK is 51% higher than the five-year average, while supply is 33% down.
I urge you to support responsible landlords, like myself, and recognise the critical contribution I and many others make to the rental market in our constituency. Without proper understanding of these issues and our genuine concerns addressed, the tenant will be the one that ultimately suffers.
I would be grateful if you would highlight these issues without haste to the Secretary of State, Michael Gove MP, at the Department for Levelling Up, Housing and Communities as he legislates on his plans to reform the private rented sector.
Please respond to my email to let me know the steps you intend to take to address my concerns, and keep me up to date with any progress you make.
Thank you for your help and support; I am looking forward to hearing from you.
Yours sincerely,
john thompson
17:06 PM, 10th August 2023, About 9 months ago
What a joke! with government almost totally focused on supposedly helping tenants, and ignoring landlords problems and concerns while battering them from pillar to post, there's going to be hardly any rental properties for tenants to rent!.... problem over! 😂
john thompson
17:18 PM, 10th August 2023, About 9 months ago
Reply to the comment left by Wendy Prince at 09/06/2023 - 10:26
Exactly, anyway the government won't tell me who I can and can't discriminate against, my mind, my house, my rules, my freedom and they will never know my reasons.
14:38 PM, 2nd November 2023, About 6 months ago
Marcus
14:59 PM, 2nd November 2023, About 6 months ago
I rent flats almost exclusively to students , on September to September contracts.
I have potential tenants approaching me already about availability for next September.
What am I meant to say to them? If I answer honestly and say that I am due to have flats available but there's no telling if they will be vacant or not , it wont be a very attractive proposition ..