Your guide to important changes in the Renter's Reform Bill

The Renters' Reform Bill is a proposed piece of legislation that would make significant changes to the private rented sector in England. The bill is intended to improve the quality of housing in the Private Rented Sector (PRS), give tenants more security of tenure, and make it easier for them to challenge unfair rent increases.

Some of the key proposals in the bill include:

Abolishing Section 21, which is a "no-fault" eviction notice that landlords can use to evict tenants without giving a reason.
Doubling the notice period for rent increases, this is currently one month's notice and will be going to two.
Introducing a new system of tenancy agreements that would give tenants more security of tenure, including the right to renew their tenancy at the end of the fixed term.
Creating a new Private Renters Ombudsman to resolve disputes between tenants and landlords.

The Renters' Reform Bill has been welcomed by many tenant groups, who argue that it is long overdue. However, some landlords have expressed concerns about the impact of the bill, particularly the abolition of Section 21. Here's a breakdown of these key points of interest to help you understand the impact this will have on the PRS.

Abolishing Section 21

Section 21 is a piece of legislation that allows landlords to evict tenants without giving a reason. It can be a useful tool to allow landlords to regain possession of their property should they be looking to sell, or move back in, however, the counterargument to this is that it doesn't offer a comprehensive level of security for the tenant currently residing at the property. The government has committed to abolishing Section 21 as part of the Renters' Reform Bill. As a result of this, Section 8 legislation will be redrawn to fill the void, allowing landlords the option to evict tenants if they are selling or moving back into the property.

Doubling the notice period for rent increases

Currently, landlords in England are required to give tenants one month's notice before increasing their rent. This is being doubled to two months under the Renters' Reform Bill. This change is intended to give tenants the opportunity to discuss and negotiate the proposed rent increase with their landlord.

Introducing a new system of tenancy agreements

The current system of tenancy agreements in England has been described as complex and confusing. The Renters' Reform Bill would introduce a new system of tenancy agreements that would be simpler and fairer for both tenants and landlords. Tenants will now need to give two months' notice if they would like to exit the property.

Creating a new Private Renters Ombudsman

The Private Renters Ombudsman would be a new independent body that would resolve disputes between tenants and landlords. The ombudsman would be able to investigate complaints and make binding decisions. The creation of the ombudsman is intended to make it easier for tenants to challenge unfair rent increases and other problems with their landlords. This differs from existing The Property Ombudsman, of which membership has been legally required for agents for many years now.

The Renters' Reform Bill is a significant piece of legislation that has the potential to improve the quality of housing in the PRS and give tenants more security of tenure. It remains to be seen whether the bill will be passed into law, but if it is, it would represent a major overhaul of the private rented sector in England.

If you would like to read more details about the Renter's Reform Bill, you can take a look at the Government website article here 🔗

Posted By

Ollie Potten