What’s happened since our update last month?
With the Committee Hearings completed, where MPs hear from lettings stakeholders, MPs have put forward over 257 amends to the Bill. Now after a longer-than-expected wait, the Bill was heard in Parliament for the third time, and so on Wednesday 24th April, the key changes were debated and have now been accepted.
Key amendments include:
- Establish an initial six-month period for tenants: This balances protecting landlords’ investment, alongside ensuring tenants can still leave a property after six months if circumstances change.
- Require an assessment of the county court possession system before abolishing section 21: The Government has been clear that section 21 will be abolished when the courts are ready and are taking significant steps to deliver court improvement, including providing £1.2m for court digitisation.
- Undertake a review of council licensing schemes: With the introduction of the new property portal, agents and landlords have sought reassurance that this will not duplicate the existing licensing system.
- Ensure the student market continues to work: The government have heard concerns about student households that do not meet the HMO definition and will broaden this ground, ensuring it applies to any property that is let by students.
- Protect the balance of longer and shorter-term lets in local areas: The Bill currently prevents landlords from marketing or re-letting properties for three months after using possession grounds to move into or sell their property, this will now include short-term lets under a licence.
- Commit to a review of the implementation of tenancy measures within the Bill: The Government will review, within 18 months, the effectiveness of new possession grounds, and the effect of moving to periodic tenancies and abolishing fixed terms.
- Commit to legislation to publish an annual parliamentary update on the state of the private rented sector: including data on the supply, size, and location of properties.
If the Renters (Reform) Bill does receive Royal Assent before the election, much of the detailed implementation guidance will need to be detailed by secondary legislation, around such things as the detail in the Decent Homes Standard and what and how information would be included in the Property Portal etc.
What is the Renters (Reform) Bill?
Promising the biggest reform to the private rented sector for decades, the Renters (Reform) Bill will deliver the government’s commitment to “bring in a better deal for renters”, including abolishing ‘no fault’ evictions and reforming landlord possession grounds. It will legislate for reforms set out in the private rented sector white paper published in June 2022.
What Are Its Key Aims?
The objective of The Renters (Reform) Bill is to ensure renters have access to a secure and decent home and that landlords retain the confidence to repossess their properties where they need to.
The Bill will:
- Abolish Section 21 ‘no-fault’ evictions
- Reform tenancy agreements, such that all tenancies become periodic (no end date)
- Introduce more grounds for possession for landlords where tenants are at fault
- Provide stronger protections against retaliatory evictions
- Introduce a new Ombudsman, which all private landlords must join
- Introduce a new Property Portal for privately rented properties in England.
- Give tenants the right to request a pet
Additional measures the Government intends to legislate for include:
- Applying the Decent Homes Standard to the private rented sector
- Making it illegal for landlords or agents to apply blanket bans on renting to tenants in receipt of benefits or with children
- Strengthening local council’s enforcement powers and introducing new requirements for councils to report enforcement activity
The Bill’s passage can be tracked here.
The Parliamentary Research Briefing (April 2024) can be found here.
Amendments to the Bill up to 19th April 2024 can be found here.
