On Wednesday, May 17, 2023, the House of Commons heard the first reading of the Renters (Reform) Bill. The measure seeks to improve the system for England’s 11 million private tenants and 2.3 million landlords. A proposed law is known as a bill when it is presented to Parliament. A bill becomes an act when it has been discussed, adopted by each House of Parliament, and received Royal Assent. The average time it takes for a bill in the UK parliament to pass from its first reading to becoming law might change based on the kind of bill and the legislative process it goes through. The average time it takes for a bill to become law is between 12 and 18 months.
We have been updated on the main points of the bill by Propertymark, and we will keep our Beaconsfield landlords updated as the bill moves through its various readings in Parliament and amendments happen.
So far, this is what we know the bill proposes to do:
Eliminate section 21 “no fault” evictions and switch to a simpler tenancy system with periodic assured tenancies giving tenants more security and the freedom to protest unfair practices and rent rises without fear of being evicted;
- Assured tenancies to be periodic with rent period not exceeding a month
- Abolition of assured shorthold tenancies
Introduce more thorough possession grounds to give landlords more options for recovering their property, such as when they want to sell it or move in with close family, and to make it simpler to reclaim properties when tenants are at fault, such as in situations involving anti-social behaviour and recurring rent arrears;
- Ground 1A The following conditions are met— (a) 35 the landlord who is seeking possession intends to sell the dwelling-house;
- Ground 8A Within a three-year period ending with the date of service of the notice under S8
(a) 25 if rent is payable monthly, at least two months’ rent was unpaid for at least a day on at least three separate occasions, or (b) if rent is payable for a period shorter than a month, at least eight weeks’ rent was unpaid for at least a day on at least three separate occasions.
The length of notice needed has changed in Ground 7A, and the landlord may give notice immediately if they are seeking repossession as a result of a significant crime conviction, such as engaging in antisocial behaviour. A judge can only award a possession order after 14 days have passed since the notification was served. This is a mandatory ground for eviction. Another change to Ground 14 is that notice can now be given right away if the tenant engages in antisocial activity. However, this ground is discretionary, so the judge will still have the final say on whether to evict the tenant. In ground 14, the phrase “likely to cause” has been changed to “capable of causing” nuisance and annoyance.
By allowing tenants to contest overly high rents that are solely intended to force them out. As it is today, landlords will still be entitled to raise rents to the market rate for their properties, and if necessary, a separate tribunal will provide a decision on this. The tribunal will continue to have the ability to ascertain the true market rent of a property in order to avoid restricting the judiciary’s freedom;
To appoint a new Private Rented Sector Ombudsman who will work with private landlords to resolve disputes in a fair, impartial, and binding manner that will be quicker, less expensive, and less confrontational than going to court;
In addition to giving tenants better information to help them make educated decisions when signing a tenancy agreement, creating a privately rented property portal will assist landlords in understanding their legal responsibilities and demonstrating compliance (giving good landlords confidence in their position). Additionally, it will assist local councils in directing enforcement efforts where they are most needed;
Give tenants the option to ask for a pet to live with them; the landlord must comply with their request within 42 days and cannot unreasonably object. Landlords will be entitled to demand pet insurance to pay for any damage to their property in order to support this. Under the reforms, agents, and landlords who consent to the tenant keeping a pet must inform the tenant in writing that either:
- The tenant maintains insurance to cover the risk of pet damage at a reasonable level.
- The tenant must pay the landlord’s reasonable costs of maintaining insurance that covers the risk of pet damage.
Finally, the UK Government will legislate to include:
- The Decent Homes Standard for the PRS (it currently only applies to social housing).
- Make it unlawful for landlords and agents to prohibit renting to individuals in receipt of welfare benefits or to families with children.
- Will bolster local councils’ enforcement authority and impose a new mandate requiring councils to report on enforcement activity.
You can download a copy of the BILL here.
Whilst there is a lot of information yet to be presented, overall we endorse these changes and are happy to discuss any worries or concerns that you may have. Just get in touch with us HERE.