A significant piece of legislation is currently making its way through Parliament – the Renters’ Reform Bill. This bill aims to bring fundamental changes to the private rental sector, impacting both landlords and tenants. Here’s what you need to know:
Key Changes Proposed in the Renters’ Reform Bill
Abolition of Section 21 ‘No-Fault’ Evictions
The bill proposes to end Section 21 evictions, which allow landlords to terminate tenancies without providing a reason. This will provide tenants with more security in their homes, but it will also mean that landlords need to rely on alternative grounds for possession.
End of Fixed-Term Assured Shorthold Tenancy Agreements
One of the most transformative changes in the bill is the abolition of fixed-term Assured Shorthold Tenancy (AST) agreements. Under the new law, all new tenancies will be open-ended, meaning there will no longer be a fixed end date. This change aims to provide tenants with more flexibility and security, allowing them to remain in their homes for as long as they wish, provided they meet their tenancy obligations. Landlords will still be able to regain possession of their property under the revised grounds for possession in Section 8.
Strengthened Grounds for Possession Under Section 8
To balance the abolition of Section 21, the bill will enhance Section 8 eviction grounds, making it easier for landlords to regain possession of their property in certain situations, such as when they intend to sell the property, move in themselves, or when a tenant is in arrears.
Introduction of a New Ombudsman Scheme
A single Ombudsman will be introduced to settle disputes between landlords and tenants without the need for costly and time-consuming court proceedings. Membership in this scheme will be mandatory for all landlords.
Property Portal for Landlords
A new property portal will be created to provide a single “one-stop shop” for landlords to understand their obligations. This portal aims to improve compliance by providing greater transparency for both landlords and tenants.
Decent Homes Standard in the Private Rented Sector
The bill will extend the “Decent Homes Standard” to the private rented sector. This is currently a requirement in social housing, ensuring properties are safe, warm, and in a good state of repair. Landlords will need to ensure their properties meet these standards.
Rent Increases Limited to Once per Year
The bill proposes that rent increases can only happen once per year and requires landlords to provide two months’ notice for any proposed increase, giving tenants more stability.
Pets in Rental Properties
The bill introduces a new right for tenants to request to keep pets in their homes, and landlords will need to consider these requests reasonably. Insurance could be requested to cover potential pet-related damages.
The Renters’ Reform Bill represents a significant shift in the private rental market. At Switch Properties, we are committed to helping our clients navigate these changes smoothly. Whether you’re a landlord looking to understand how these reforms affect you or a tenant seeking clarity on your new rights, we’re here to assist.
