Banning no-fault evictions and abolishing fixed-term leases feature amongst new reforms being put forward by the government, aimed at better protecting renters.
The Renters’ Rights Bill, introduced for its first reading on 11 September, is proposing changes that would strengthen the position for renters, similar to the Renters (Reform) Bill which had been progressing through Parliament under the last government, prior to the general election.
A major change to the previous attempt at reforms, however, is that there would be no transitional change for existing tenants, meaning all changes would be introduced on day one, should the bill be passed into law – thereby placing significant pressure on landlords to ensure they are up-to-date with the reforms quickly.
The government is also set to introduce a new Private Rented Sector Landlord Ombudsman to oversee the tenancies market and ensure the rights of renters and landlords are being observed, whilst giving a more centralised place to raise concerns.
This nationalised approach would see a database established for the sector that would support Local Authorities’ work in enforcement and give tenants more information on their landlords when considering entering into a tenancy agreement.
Some of the other significant changes being introduced are:
- The abolition of Section 21 “No fault” evictions – which will be done in one stage for all tenants, both new and existing tenancies - which will convert to the new system;
- Tenants will be able to end the tenancy by giving two months’ notice as long as the end date of the tenancy aligns with the end of a rent period;
- Tenants will have the power to appeal overly above-market rents;
- All tenancies will become periodic, replacing all that are fixed-term;
- Requests for a pet in the property cannot be unreasonably refused;
- Landlords will have to adhere to the legal expectations on time frames for making homes safe as set out in “Awaab’s Law” – which currently applies to social housing;
- Landlords and agents will not be allowed to ask for or accept offers above the advertised rent;
- The introduction of a new Private Rented Sector Database which all landlords of assured and regulated tenancies will be required to register themselves and their properties on;
- Landlords will not be able to discriminate against potential tenants with children or in receipt of benefits.
In addition to this, the bill is proposing strengthening the enforcement powers of Local Authorities, with new investigatory powers being balanced by the requirement to report on their enforcement work.
Having only just been introduced to Parliament, it is likely that the final version’s introduction into law will take some months, with potential for changes along the way.
Michael Tatters, Thrings’ Head of Property Litigation, said: “For many, these proposed reforms have been long-awaited and it is helpful to finally see what the government is proposing in terms of rented sector reform, having highlighted it in their election manifesto and referenced it in the King’s Speech earlier this year.
“It is evident, from the proposals themselves, as well as the government’s corresponding narrative and even the bill’s name itself, that these reforms are heavily tilted in favour of renters, with the government defining it’s purpose as to give renters much greater security and stability.
“With this in mind, landlords will need to be acutely aware of what the changes are, what that means for their properties and what they would need to change in order to be compliant – something that is all the more important given the ‘day-one’ nature of the proposals. As such, we would always recommend property owners seek legal advice to ensure they are meeting all new and updated standards.”
Thrings’ Property Litigation lawyers are experienced in reaching resolution in property disputes, acting for both landlords and tenants, often without recourse to court proceedings, and with an excellent track record when cases do go to Court. To find out more, get in contact.
