The Renters Reform Bill is a proposed piece of legislation in the United Kingdom intending to change the law on renting homes including the abolition of no-fault evictions. It is also intended to abolish fixed term assured tenancies and assured shorthold tenancies in favour of periodic tenancies.
The main points of the Bill are as follows:
1. Ending "no-fault" evictions: It aimed to abolish Section 21 notices, which allow landlords to evict tenants without providing a reason. This change would be expected to provide more security for renters.
2. Extending the notice period: The bill proposed to increase the notice period required for eviction under Section 8, giving tenants more time to find alternative accommodation.
3. Improving rental standards: It included measures to enhance rental property standards, such as ensuring that all rental homes are fit for human habitation.
The specifics of the bill will evolve before becoming law with certain amendments being introduced.
The Second reading of the Bill went before the UK Parliament in October 2023 where a number of amendments to the Bill were passed.
No Fault Eviction Ban Delayed
The main flagship proposal, promised in the Conservative Party Election manifesto in 2019, to end no fault evictions was delayed by Housing Secretary Michael Gove. Whilst this was stated as a delay there was no commitment to an introduction at a future date. It is possible therefore that this proposal may never see the light of day.
The government says the delay is due to the court system yet being fit for purpose. With the proposed changes, Landlords would be more reliant on the courts in order to reclaim possession of their rental properties.
This has led to the abolition of Section 21 being deferred until reforms to the court system are in place.
Most Landlords would welcome this move whilst Tenant campaigners and opposition party members have criticised this decision. Many Conservative MP’s opposing the change are landlords in their own right so this may tell you something about where their priorities lie.
This change may affect tenants in the long run who maybe evicted for no reason. However, it may also see a fall in the number of landlords currently looking to evict and possibly sell rental properties are the Bill is watered down.
So what other changes are included in the Bill?
Rent increase regulation
Plans to regulate rent increases whereby they can be increased annually by a market rate. Landlords would need to give 2 months’ notice of a rent increase. Tenants could fight excessive increases in a Tribunal.
More powers for landlords to evict nuisance tenants
Landlords will find it easier to evict nuisance tenants for anti-social behaviour or regular missed rent payments.
It would also be easier for Landlords to repossess a property where they wanting to sell.
When will the Renters Reform Bill become law?
As the Bill has passed its second reading in the House of Commons, it is now at Committee stage. This will be followed by a third reading.
The Bill will then go through similar stages in the House of Lords before becoming law.
It is unlikely to be introduced in to law before Mid 2024.
So What Does This Bill Mean For Tenants and Landlords
The main intention of the Bill is to provide more protection for Tenants from unscrupulous landlords. Of course there are many reports of rented properties and rooms to let in very poor, dilapidated condition. This needs addressing and any steps that can be taken to to reduce the number of these properties and improve rental stock overall, is long overdue.
Obviously, here at Rooms For Let we would support these measures in the hope that standards do improve. However, the Bill could have the opposite effect. With many changes over the recent past in the rental market, many landlords are selling properties or reducing portfolios. With available, good quality rental stock in very short supply, any tightening of rules could exacerbate the problem.
Many things have prompted landlords to consider selling up some or all of their properties. Increased interest rates and other cost of living rises reduces the bottom line for Landlords where rent prices can't be increased. The bill will limit the amount rent can be increased once it becomes law so may not offset these and future cost rises. There have also been changes to tax rules over the recent years, again reducing any profit.
Reduced profit and increased legislation will mean more landlords will take the decision to move out of the sector. this will add to the pressure on available stock, increasing already unaffordable rents. As landlords have less profit they may choose (or be unable) not to re-invest as much in improving the property and so standards could in fact drop. All these are factors the Bill is intended to address.
Rooms To Rent
The Bill could affect a lot of landlords whether they be renting complete properties or offering rooms to rent. Properties should be of a certain standard and habitable.
However, whilst any legislation changes can be costly, the majority of landlords already rent properties which are at the required standard and so these changes should have little or no effect.
With the issues above or reduced rental stock availability and increasing rents, now could be a good time to make that to becoming a Landlord or renting a room in your own home.
For those renting a room in their own home, they will equally have to abide by the law. However, it would be expected that this type of rental would be of a reasonable standard in any event.
Landlords and Tenants
If you are a Landlord looking to advertise rooms to rent or a home owner looking to rent a room in your own home you can do so on Rooms For let. Please register as a landlord here, the start posting your rooms.
If you are a tenant looking for a room to rent you can search our available adverts here. All enquiries are sent directly to the relevant landlord who should respond to you. You can also Register your details and we can contact landlords for you through our powerful matching system.