The Renters’ Reform Bill: Everything you need to know

On 17th May this year, the Renters’ Reform Bill - hailed as “the biggest change to the private rental sector for a generation” - was finally introduced to Parliament.

Originally proposed in April 2019, the Bill has suffered a series of delays and has only just begun a lengthy progress through the House of Commons and the House of Lords. Parliamentary observers estimate that it could take 18 months before these new laws for landlords become a part of official UK legislation.

What does the Renters Reform Bill mean for landlords?

The Bill promises to revolutionise renting in a number of different ways. Here are some of the changes that will affect landlords:

• The abolition of the Assured Shorthold Tenancy
• An end to ‘no-fault’ evictions (Section 21)
• Changes to landlords’ grounds for possession (Section 8)
• A new property portal and landlords’ register

An end to Assured Shorthold Tenancies and ‘no-fault’ evictions

Under the new proposals, the nature of tenancies will change. When an Assured Shorthold tenancy agreement comes to the end of the term, they will simply roll over and become ‘periodic’ tenancies with no fixed end date.

Going forward, landlords will be unable to evict their tenants unless they give a solid reason which has been defined in law. This could, for instance, be because the landlord needs to sell the property or wants to move into it themselves.

These new rental laws put an end to the Section 21 ‘no-fault’ eviction, where a landlord can in effect force a tenant to vacate without providing a reason.

Changes to Section 8 grounds for possession

The government plans to make changes to the grounds within Section 8, which will make it easier for landlords (or letting agents who act on their behalf) to regain possession of rental properties. The changes will apply to instances such as persistent rent arrears and antisocial behaviour.

A new, mandatory Ombudsman service is also planned to help with disputes. It is hoped that the new body will streamline the current system (which involves several different organisations). It should also ease pressure on the courts.

A new property portal and landlord register

The portal will provide a ‘one stop shop’ for landlords, letting them access relevant guidance through a single ‘front door’. Landlords and letting agents will also be able to upload information to show that their properties are legally compliant. This information will be accessible to local councils to assist them with enforcement action.

Do I need to worry?

The simple answer is No. The Renters Reform Bill is still at an early stage in its progress (the Second Reading). When it passes on to the all-important Committee Stage, it will be thoroughly scrutinised, and amendments may be made at that time.

As leading London estate agents, we are keeping a close eye on this parliamentary journey, and you will be first to hear of any new developments. We will also be there to support our landlords when the Bill finally becomes law.

While it is understandable for landlords to feel some concern about the range of changes proposed, there is no need to worry. As a Daniel Cobb landlord, we’re here to support you at every stage. We have a team of professionally qualified agents who know the law inside out and will work hard to ensure you continue to get the best return on your investment.