Renters (Reform) Bill – A Step Forward In Legal Aspects Of Landlord-Tenant Relationship
Social and economic changes in the landscape of the housing market have led to the introduction of the Renters (Reform) Bill by the Government to Parliament.
Whilst intended to balance a system that has been criticised over past years, if successfully implemented it proposes to make fundamental changes to the current rights of Tenants, which Landlords will need to ensure that they are fully aware of to avoid running afoul of the new rules.
More certainty in a system, intended to set off a chain reaction of positive implications
Of the proposed changes, perhaps the most significant is the abolishing of the Section 21 eviction procedure, otherwise known as the ‘no-fault eviction”. Whilst initially threatening to curtail a Landlord’s ability to recover their property, the Reforms propose to comprehensively overhaul, for the better, Landlord’s rights on a fair basis.
For example, landlords will still have the right to claim the grounds of repossession. The former list of the grounds has been reviewed and proposals made to cover the maximum of all the possible circumstances. The notice period varies from 2 months in most cases to 2 weeks, however in order to balance the rights and protections of Tenants, the moving in, selling or redevelopment grounds will not be allowed to be used for the first six months of the tenancy. It also prevents Landlords from reletting a property shortly after relying on grounds that don’t relate to a Tenant’s conduct. In addition, the reforms propose to tackle the concerns of Landlords that they will be unable to take prompt action in case of the extremes like anti-social, or criminal behaviour – in these cases the Landlord can make a possession claim immediately.
Additional measures include protections for Tenants to challenge rent increases which are intended simply to force them out; a right to request a pet at the Property and an obligation on the Landlord to act reasonably in considering this (not to be mistaken with an absolute right for the Tenant); the introduction of a new Private Rented Sector Ombudsman as an alternative form of dispute resolution; and the creation of a Privately Rented Property Portal, which is intended to be a library of information for Landlords to enable them to ensure that they are in line with the new requirements.
The Government has also published further Statements in 2023 setting out its commitment to reforming the Property sector, including (but not limited to) further changes to the Landlord & Tenant market to further protect from discrimination against particular tenants; changes to permitted development rules to make it easier to convert properties to houses, and to erect new industrial and warehouse buildings.
At this time of focused reform and development, it’s important that everyone with a vested interest in the Property Market, whether you are an investor, owner, developer or tenant remains up to date.
For more information on BRM and services, please contact:
Travis Wood
Senior Associate, Real Estate Department
Email: travis.wood@brmlaw.co.uk
Phone: 0114 6987464
