Introduction

Renting a home can often come with uncertainties and challenges for both tenants and landlords. However, recent developments in the UK housing market aim to address these concerns and create a better renting experience. The Renters’ Reform Bill, introduced to Parliament on 17 May 2023, promises to bring about significant changes in the private rented sector. These reforms, described as a “once-in-a-generation” opportunity, seek to deliver safer, fairer, and higher quality homes. So what are the key provisions of the Renters’ Reform Bill and how will impact both renters and landlords?

Abolishing Section 21: Empowering Tenants and Ensuring Fairness

One of the central objectives of the Renters’ Reform Bill is to abolish Section 21, commonly known as “no-fault” evictions. Section 21 currently enables private landlords to repossess their properties without providing a specific reason, potentially leaving tenants vulnerable and lacking security. By removing Section 21, the government aims to level the playing field between landlords and tenants, empowering tenants to challenge landlords who provide substandard housing, give unjustified rent increases and apply poor practices.

Introducing Standard Periodic Tenancies: Simplifying Rental Agreements

Under the Renters’ Reform Bill, the government plans to introduce a single system of periodic tenancies, simplifying rental agreements. Currently, Assured Shorthold Tenancies (ASTs) are the most common type of rental agreement, usually lasting for six to twelve months or longer. After this initial term, tenants and landlords decide whether to renew the contract or roll on to a monthly periodic (rolling) tenancy.

The proposed reform aims to make all rental properties operate under a periodic tenancy, without a specified end date. To ensure landlords can recoup costs and minimise void periods, tenants would be required to provide two months’ notice when leaving a tenancy. Landlords, on the other hand, would only be able to evict tenants under “reasonable” circumstances.

Enhancing Tenant Rights: Keeping Pets and Rent Increase Regulations

The Renters’ Reform Bill also seeks to grant tenants more rights regarding pets in rental properties. Under the proposed legislation, tenants can request permission to keep pets, and landlords cannot unreasonably withhold consent. This provision strikes a balance between tenants’ desire for companionship and landlords’ concerns about potential property damage.

Furthermore, the Bill introduces regulations to limit rent increases to once per year and doubles the minimum notice period landlords must provide for any changes in rent. This measure aims to alleviate the burden of rising living costs and prevent tenants from facing sudden and unaffordable rent hikes.

Thoughts from Trinity Property

Eric Morse-Brown, Director of Trinity Property, said; “The removal of Section 21 evictions and the introduction of Standard Periodic Tenancies is aiming to create a more balanced and fair rental market. It ensures that tenants have increased security and protection, whilst encouraging responsible landlords to improve communication with tenants and deal with any issues that arise, in order to maintain consistent occupancy and therefore plan for the future with greater certainty.”