If you let or rent a property, then the chances are you’ve heard about The Renters (Reform) Bill, which was introduced to Parliament in May. The Renters (Reform) Bill brings with it significant changes to the rental landscape, aiming the enhance the rights and protections for both landlords and tenants. Whether you’re a landlord or a tenant, understanding the key provisions of the new bill, will not only ensure compliance but will help create a positive rental relationship.
Feeling slightly confused about the New Renters (Reform) Bill? Not to worry. Here, the experts at Shortland Horne have put together this handy guide, outlining the major changes and implications for landlords and tenants alike.
What is the Renters (Reform) Bill?
In short, the Bill – which is said to be a ‘once in a generation’ shake-up – outlines the government’s plans to ‘reform’ the private rented sector and level up housing equality. Designed to ‘bring a better deal’ for renters, the Bill brings is set to bring with it the biggest changes in the private rented sector in 30 years.
Why has the Renters (Reform) Bill been introduced?
The Bill addresses several issues and concerns that have been identified within the rental sector. Some of the key reasons for introducing the Bill include:
- Tenant security
- Enhancing the rights of renters
- Addressing financial burdens (e.g. introduction of lifetime deposits, which will allow tenants to carry their deposit from one tenancy to another)
- The need for a more fair and balanced rental market
- Improving overall housing standards
When will the Bill take effect?
Although we’re not entirely sure when the Bill will become law, it’s likely that this will be mid to late 2024. This will give existing tenancies the necessary transitory period required.
What does the Bill involve?
Abolition of Section 21
One of the most significant changes introduced by the Renters (Reform) Bill is the abolition of Section 21. This means landlords will no longer have the ability to evict tenants without providing a valid reason. This change emphasises the importance of maintaining proper grounds for eviction and therefore promotes more secure tenancies.
An end to fixed-term tenancies
As part of the Bill, all fixed-term tenancies will be abolished. This will mean tenants will be free to give notice at any stage during their tenancy. Tenants will need to give landlords a notice period of two months, with any longer period made illegal.
As a landlord, it’s worth noting, if you do attempt to create a fixed-term tenancy, you risk being penalised by the local authority.
Strider rules surrounding rent increases
Rent increases will be limited to once a year and the minimum notice a landlord must provide, of any change in rent is being increased to two months.
Tenants will be given more rights to keep pets in rented properties
The Renters (Reform) Bill refers to tenants requesting permission to keep a pet in their home, and landlords cannot unreasonably say no. Furthermore, a landlord will need to give consent by the 42nd day after the request was initially made – note for landlords, this can be extended by a week if you should require additional information.
The introduction of a new ombudsman
Landlords will be required to join a mandatory ombudsman, which will cover all private landlords who rent out a property in England – regardless of whether they use a letting agent or not. This will allow tenants to make a complaint against their landlord, which will be independently investigated.
The ombudsman would have the power to ensure necessary action is taken by the landlord, which could include anything from issuing an apology or paying up to £25,000 in compensation.
No more blanket bans
It will be illegal for landlords to apply a blanket ban on renting to tenants with children or those on benefits.
Lifetime deposits
As mentioned, the Bill introduces the concept of lifetime deposits. This means that tenants will no longer need to pay a new deposit each time they move, as the deposit will carry over from one tenancy to another.
Improved housing standards
The Bill also aims to raise housing standards by introducing mandatory minimum standards for rental properties. This provision will ensure that rented accommodations meet specific criteria for safety, living purposes and energy efficiency. As such, tenants will benefit from improved living conditions, ensuring their safety and wellbeing. They will also have the right to request necessary repairs and expect their landlord to meet minimum housing standards.
Are you a landlord or a tenant? Know you’re in safe hands when you let or rent with Shortland Horne
Clearly, the Renters (Reform) Bill brings with it significant changes that impact both landlords and tenants. But, by understanding and complying with the new provisions, landlords can maintain a positive relationship with their tenants, while ultimately avoiding any potential legal (and costly) issues. Tenants, on the other hand, can enjoy increased security, improved housing standards and enhanced rights.
If you’re a landlord or a tenant, looking to let or rent a property in Coventry and the surrounding area, then the first step is getting in touch with Shortland Horne. Our team of experts are here to advise, support and guide you, making sure your letting or renting process is as stress-free as possible.