In June 2022 the Government announced reforms, proposing a “fairer, more secure, and higher quality private rented sector”. A twelve-point plan of action was set out and the Renters Reform Bill is expected to be introduced into Parliament by spring 2023.
What will the reforms include?
The government intends to abolish section 21 no fault evictions so that a tenancy can only end if a tenant ends it, or if the landlord has a valid ground for possession. New grounds for possession are likely to be introduced under section 8 of the Housing Act 1988, including a persistent arrears ground and a ground to evict a tenant if a landlord is selling a property. The Government has also proposed to expedite a landlord’s ability to evict tenants committing anti-social behaviour.
In order to accommodate these proposals, the Government wants all tenancies to be moved onto a single system of periodic tenancies, and all tenancies will, by default, be assured, thus ending the reign of the assured shorthold tenancy.
Further key changes will prevent landlords from increasing the rent more than once a year, and it will become illegal to have a blanket ban on renting to families with children or to those in receipt of benefits. A new Ombudsmen will also be introduced that all private landlords must join. It will have the power to compel landlords to issue an apology, take remedial action and/or pay compensation to tenants up to £25,000.
Pets are also likely to become a contentious issue, as landlords will not be able to unreasonably refuse consent for a tenant to keep a pet in the property, although tenants may be required to buy insurance to cover any damage.
Conclusions
These proposed changes to the private rented sector are huge and more detail is eagerly awaited. At first glance the Renters Reform Bill appears to favour tenants, and it is hoped the Government legislates to balance the scales to give landlords the confidence to continue letting their properties.
Bate and Albon Solicitors can help you in respect of all aspects of property law including landlord and tenant work. If you require advice please contact Ricky Coleman ricky.coleman@bateandalbonsolicitors.co.uk or Alina de Heer alina.deheer@bateandalbonsolicitors.co.uk