Rental Reform Key Features
We are getting in touch to update you on the Renter’s Reform Bill, which is set to enforce major changes in the rental market.
Through these changes, the current government plans to readjust the power balance between landlords and their tenants.
The bill, in its current form, includes four major changes (among a host of other smaller adjustments).
No-fault Evictions Banned
As it stands currently, Section 21 allows landlords to repossess their homes from tenants in Assured Shorthold Tenancies in cases where their fixed term has ended, or no fixed term is in place.
These are commonly called ‘no-fault evictions.’ The threat of no-fault evictions is believed to dissuade tenants from challenging landlords when they are living in poor conditions.
The Renter’s Reform Bill will ban these types of eviction.
Easier Repossession – Disruptive Tenants
To cover for the banning of Section 21, the bill also introduces changes to what ‘disruptive’ or ‘anti-social’ behaviour can legally warrant an eviction.
Notice periods for irresponsible tenants (missing rent payments/ causing damage) will be shortened. The list of disruptive behaviours which can lead to repossession will be broadened.
New grounds for repossession will be brought in for landlords who seek to repossess for their own use of the property (or a family member’s).
Landlords will now be expected to consider all requests for pets and the tenant may challenge their decisions if they believe they are unreasonable.
Following this, tenants may be expected to set up insurance to cover potential damage to the property.
Ombudsman for Disputes
For smaller disputes, to avoid the need for a court, the government will set up an ombudsman to independently investigate.
It is believed this will lead to faster resolutions. The ombudsman will have the authority to demand up to £25,000 in compensation from landlords who are found to have acted improperly.
These are the key changes for now, but we will keep you updated as the bill is debated in Parliament. Because of the nature of such reforms, we are not expecting to see any changes enacted until 2024.
EO Estate Agents