How will the Renter’s Reform Bill Affect Landlords and Tenants?
Originally proposed in 2022, the Renter’s Reform Bill aims to improve the rights and conditions of tenants, while simultaneously imposing new obligations on landlords. The bill originally intended to eliminate Section 21 ‘no fault’ evictions and protect tenants from rental discrimination. Just a few days ago, on the 24th April 2024, the Bill passed its third and final reading in the House of Commons. At this stage, the bill will now be received in the House of Lords and it will likely become law – but what does this mean for our tenants and landlords?
Most importantly, the elimination of Section 21 ‘no-fault’ evictions was discarded. A Section 21 notice is the legal mechanism by which landlords can evict tenants without necessary grounds. There have been a number of delays to its abolition as politicians are concerned that this measure would overwhelm the courts with eviction cases.
Though it is still only in its draft stage, the bill will likely make it illegal to refuse to rent to prospective tenants on benefits or on the basis of having children. It will also furnish tenants with the right to rent with pets.
In relation to landlords, the bill has put forward revised Section 8 grounds, which further limits the ability of landlords to evict tenants. Moreover, tenants can only give notice after six months within a tenancy. Landlords will only be able to increase the rental price of their property once per annum. All private landlords will have to join a government-approved redress scheme. There will also be a government database of landlords.
These regulations do not necessarily benefit tenants. Further regulations on landlords may simply reduce the already dwindling supply. Instead, one solution would be to construct further housing – we are facing a serious housing shortage in the UK. Moreover, although it remains ambiguous how or when this bill will be enacted, it is evident that landlords will face more stringent regulations, more complex eviction processes and higher property standards. JCP Estate Agents always ensures that these standards are met and processes are adhered to. We are always happy to lend a hand to landlords who are unsure how to navigate these new and complicated regulations. We are committed to supporting both landlords and tenants in the face of the Renter’s Reform Bill.
