The Renter's Reform Bill  - 10 key points:

 1. The abolishment of Section 21 no-fault evictions

The most highly-anticipated announcement is, of course, the abolishment of Section 21 evictions. The new Bill requires landlords to provide specific reasons for evicting a tenant which will mean taking the case to court.

Currently, the only other alternative for landlords is Section 8 evictions, which are often lengthy and expensive. While the Bill also promises new eviction rights for dealing with anti-social tenants, many landlords will find they would still need to use Section 8 to repossess their property. 

The abolishment of these no-fault evictions is why we’re seeing many mainstream media outlets discussing the potential mass exodus of landlords. With many property investors remortgaging onto higher interest rates, as well as legislative changes meaning higher taxes for landlords, this announcement, for many, is the final straw. The increased costs across the board, coupled with this new move to restrict landlords’ ability to repossess their own property, threatens to drive many reliable and responsible property investors from the market for good.

In the coming months, it will be interesting to see how the market fares with this news. What the sector needs now is further details on eviction rights and how the court system will prioritize and deal with the inevitable increase in Section 8 notices.

 2. Introduction of Rolling Tenancies

The Bill has made a key change to tenancy agreements, with tenancies to now automatically continue in lieu of the short-term, fixed contracts that the sector is used to.  

 3. Rent increase notice periods to double

Landlords will have to give tenants at least two months’ notice ahead of rent increases, which will also be capped at one increase per year.

 4. New eviction powers for rental arrears and anti-social behavior

This legislative change should make it easier for landlords to evict anti-social tenants and reduce the time it takes them to repossess their property. However, this is unlikely to go so far as to replace Section 21.

 5. Landlords unable to unreasonably refuse pets on their properties

Landlords will now be unable to unreasonably refuse to allow tenants to keep pets. Whilst this will not concern some property investors who are happy to keep pets in their properties, a staggering 88% of landlords have incurred damage to their properties from pets.

Michael Gove was asked whether landlords will be able to advertise their properties as No pets, and no one on benefits, his response was:  landlords need further details on what reasonable refusal is to fully understand the impact of this legislative change.

 6. A Landlord Portal

The Portal sets out to protect tenants by giving them the opportunity to review landlords for other tenants to see. This Portal gives landlords the opportunity to earn some recognition for the reliable and responsible service they provide. Tenants will be able to see a landlord’s letting history and ‘score’ a landlord.

 7. A New Property Ombudsman

A new single Ombudsman will be introduced in order to settle disputes between landlords and tenants outside of the court system. The aim is to simplify these cases, allowing for a quicker and less expensive process. Landlords with letting agents already have access to this system, but the Bill will extend this to all private landlords.

 8. Repeated rental arrears to be grounds for eviction

Currently, many landlords are struggling with a loophole that allows tenants to avoid eviction based on rental arrears, provided they pay prior to a possession hearing. This causes financial uncertainty and is a large barrier to landlords repossessing their property.

The new Bill is attempting to close said loophole, with repeated serious rental arrears to be mandatory grounds for eviction.

 9. The Decent Homes Standard

The Decent Homes Standard which currently only applies to social housing, will now be extended to the Private Rental Sector. The standard sets out to ensure that all tenants have access to safe, good quality, and comfortable homes.  

 10. No bans on tenants on benefits or families

The Bill will make it illegal for landlords and letting agents to apply a blanket ban on tenants on benefits or to families with children.

To find more info on the Renters’ Reform Bill visit the government's website

The UK Right 2 Rent Register

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