First introduced in 2019, the Renters Reform Bill is poised to revolutionize the rental landscape in England with far-reaching changes that will impact both landlords and tenants. London-based lettings agency JOHNS&CO sheds light on the potential impacts and opportunities embedded within the bill.
Graeme Goessen, the Director of Management Services at JOHNS&CO, remarked, “After years of anticipation, the bill’s publication has raised concerns about potential risks for private landlords. We eagerly await more detailed insights into its practical workings. While ongoing parliamentary reviews offer chances for adjustments, landlords mustn’t overlook the potential advantages the bill might offer.”
The bill is currently in the “second reading” phase within the House of Commons. Anticipating that the second reading debate is yet to take place, JOHNS&CO forecasts that the bill is unlikely to receive Royal Assent before 2024.
Graeme Goessen further explained, “After Royal Assent, a minimum of six months’ notice will precede the initial implementation date. From then on, all new tenancies must adhere to the bill’s provisions. A subsequent 12-month notice will retroactively govern existing tenancies. Let’s delve into a few of the key proposed changes.”
Farewell to Section 21
The most significant shift is the abolition of Section 21, which facilitated “no-fault” evictions. This change will require tenants to provide two months’ notice before leaving a tenancy, and landlords will only be able to evict under reasonable circumstances defined by law. Graeme Goessen noted, “While this alters eviction strategies for landlords, the fundamental reasons for seeking possession remain the same.”
The bill suggests reinforcing Section 8 as an avenue for landlords to terminate tenancy agreements early with legitimate reasons. Graeme Goessen added, “While enhancing tenant security, the fortified Section 8 also empowers landlords by broadening eviction grounds, especially in cases of persistent breaches of tenancy agreements.”
Additionally, the bill introduces new mandatory eviction grounds, such as landlords wanting to sell the property or accommodate family members.
Mandatory Private Rented Sector Ombudsman
The bill aims to establish a mandatory Ombudsman to offer impartial dispute resolution for landlord-tenant conflicts, bypassing court involvement. “This streamlined service will expedite dispute resolution, benefiting both parties. The potential addition of mediation services will assist landlords in resolving disputes,” mentioned Graeme Goessen.
The Ombudsman will have authority to compel landlords to address issues and will also grant landlords access to training and support.
Enshrining the Right to Pets
Under the bill, tenants gain an implied right to request consent for pet ownership, which landlords cannot unreasonably deny. However, exceptions exist, such as where a superior landlord prohibits pets. Graeme Goessen acknowledged, “Further clarity is needed to determine reasonable refusal grounds. The bill proposes enabling landlords to demand insurance to cover pet-related damages.”
Graeme concluded, “The lettings market is pivotal to the UK housing sector and economy. This legislation seeks transformative market changes, necessitating balanced consideration for landlords’ needs. Landlords should stay vigilant and agile amid rental reforms, seeking guidance from their letting agents.”
As the Renters Reform Bill navigates through legislative channels, its potential to reshape the rental landscape remains a topic of keen interest for all stakeholders involved.