Background

The Renters Reform Bill (“the Bill”) will see the commitment of the Governments 2019 manifesto, to create a fairer private rental sector, take form. The Bill is intended to strike a balance between delivering security for tenants and fairness for landlords. It aims to do so by protecting tenants from revenge evictions and non-law-abiding landlords, whilst strengthening the rights of possession for good landlords. The Bill will therefore significantly increase the level of regulation in the private rented sector. Once enacted, the Bill will apply to all new tenancies granted on or after its commencement date. For existing tenancies, it will apply after the fixed term expires.

The Bill had its first reading in the House of Commons in May 2023. This is when the Bill was introduced, and the legislative process began. The Bill had its second reading in the House of Commons in October 2023. During this stage, a more detailed discussion and debate took place. The Bill went through the Committee stage in November 2023. During this stage, the Bill was examined in detail by a committee. The Bill is currently in the Report stage. During this stage, the Bill is critiqued by MPs who voice changes they would like to see added to the Bill.

The changes suggested by MPs have now been published and the Minister for Levelling Up has confirmed that the Bill will have its third reading (where the final version of the Bill is debated) in the House of Commons upon the MPs return from Easter recess, from 15 April. This is in attempt to reduce uncertainty in the private rented sector by delivering the Bill as soon as possible.

The proposed changes

The below improvements are to be brought forward at the upcoming third Commons reading:

  • Establishing a six-month minimum period for tenants when they take occupation of a property. The original proposal for the Bill had allowed tenants to end a tenancy with two months' notice at any point, as there would be no fixed term tenancies. Exemptions to the six-month minimum period will be considered, such as the death of a tenant, domestic abuse or significant hazards in the Property.
  • Providing an assessment on the County Court possession system before abolishing Section 21 notices. The Bill had originally proposed to abolish Section 21 notices as soon as it became law, but the Lord Chancellor will now be required to publish an assessment on barriers to possession and the readiness of the Courts before abolishing Section 21 notices for existing tenancies.
  • Expanding homelessness prevention duties. Currently, when a tenant is evicted using a Section 21 notice, the local authority owes them a homelessness prevention duty. So that renters are not left without the support they require to prevent them from being homeless when Section 21 is abolished, an amendment will be made to ensure that a homelessness prevention duty will be owed to all tenants served with a valid Section 8 notice.
  • Undertaking a review of Local Authority licensing schemes. The Bill had proposed to introduce a property portal for landlords that would hold required information about landlords and their properties, but landlords were concerned this would duplicate the existing licensing system. In light of this, a review of licensing will take place covering selective licensing and HMOs in order to reduce burdens on landlords.
  • Broadening the ground for landlords to evict students after an academic year. The original proposal introduced a new mandatory possession ground allowing landlords to evict students living together in a HMO. This did not account for student households that do not meet the HMO definition. This ground will therefore be widened, ensuring it applies to any property let by students.
  • Protecting the balance of long and short term lets. The Bill had proposed to prevent landlords from marketing or re-letting a property for three months after they have used possession grounds to move into or sell their property. This will be amended to ensure landlords cannot turn properties into short term lets in this three-month period.

The Bill will have to pass through all the above-mentioned stages again in the House of Lords, before it is given Royal Assent making it an Act of Parliament (law). It is predicted that the Bill will become an Act of Parliament in Autumn 2024.

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