A summary of the Renters (Reform) Bill
On 17 May 2023, Parliament gave the long-awaited Renters (Reform) Bill its first reading. The Bill was presented to Parliament by the government to act on its promise to secure a ‘better deal for renters’ in an increasingly unpredictable housing market. According to a report by the Department for Levelling Up, Housing and Communities, 4.6 million households rent from a private landlord, roughly 11 million people.
As a result of the growth of this housing sector, the Renters (Reform) Bill aims to strike a fairer balance between tenants and landlords. This article, written by trainee solicitor Harry Chapples, outlines the key features relevant to both landlords and tenants below:
1 – Changes to Fixed Term Assured Tenancies (FTATs) and Assured Shorthold Tenancies (ASTs)
Under the current legislation, Housing Act 1988, tenancies can be either fixed-term (FTATs) or periodic (a form of AST). However, clause 1 of the Renters (Reform) Bill provides that in future, all assured shorthold tenancies will be periodic and can no longer be for a fixed term. The periods themselves will be limited to a month, not exceeding 28 days.
What does this mean?
The abolishment of FTATs will mean tenants have greater flexibility to end tenancies. However, this may also allow landlords to propose changes to terms of the tenancies at the conclusion of each period.
2 – Abolishment of Section 21 Notices (‘No Fault Evictions’)
Under current legislation (Section 21 of the Housing Act 1988), landlords have the right to regain possession of their property from a tenant on the mere service of a notice, provided certain conditions are met. This is widely referred to as the ‘no fault eviction’ notice or ‘Section 21 Notice’. The Renters (Reform) Bill aims to provide tenants with access to more secure tenancy by abolishing landlords’ statutory right under Section 21.
What does this mean?
This offers greater protection to renters who may seek to challenge imposed changes to the tenancy by landlords (for example, poor repair practice or unreasonable increases to rent.) Tenants can challenge such changes without further fear of eviction and landlords can no longer evict at no fault of the tenant.
3 – New Ombudsman service
Part 2 of the Renters (Reform) Bill makes provision for the new Ombudsman and the Private Rented Property Portal. In the Bill, the government will be permitted to make a designated scheme act as an Ombudsman service for all private landlords. This scheme will be mandatory.
What does this mean?
Tenants will have further provision for redress for poor landlord practice. Being mandatory, this scheme enables local councils to effectively deal with disputes between the parties without going to Court. This will be a cheaper means of dispute resolution in the future.
4 – Other notable features
A handful of other fundamental changes that are to be implemented by the Renters (Reform) Bill include:
– The notice period for a Landlord seeking possession due to rent arrears under Section 8 of the Housing Act 1988 will increase from two to four weeks (Section 3(3));
– It will be a summary offence to serve a Section 8 Notice on grounds the Landlord knows they are not entitled to (Section 11);
– Tenants will have the statutory right to request a pet within a six-week notice period (Section 6);
– Landlords’ failure to protect a tenant’s deposit will restrict ability to regain possession (Section 19);
– Landlords may face fines up to £5,000 if they fail to provide a tenant with prescribed information as detailed in the Regulations (Section 11).
Lennons Solicitors regularly advises on a variety of contentious and non-contentious Landlord and Tenant matters, including possession orders and landlord/tenant disputes. Should you wish to enquire in relation to the same, please email hello@lennonssolicitors.co.uk or call us 01494 773377.
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