How the new Renters Reform Bill will 'shake up' the Private Rental sector

Parliament has announced the long-awaited Renters Reform Bill, arguably the biggest shake-up to Private Rental and renters' rights for over a decade. The new law, in short, will prevent landlords from evicting tenants without justification, thus abolishing no-fault evictions. The change will also make it much easier for landlords to repossess properties from anti-social tenants. The new Bill is part of a long-promised overhaul by the Government, where Conservatives pledged "a better deal for renters" in their 2019 general election manifesto. 

Also known as a 'section 21 notice', a no-fault eviction is an essential piece of housing legislation that allows landlords to evict tenants without reason. According to the housing charity Shelter, nearly 230,000 private renters were served with no-fault notices between April 2019 and April 2022. Several homelessness charities have welcomed the news but said more could still be done to prevent tenants from becoming homeless.

The Bill will also see several new rules come into effect. For example, a tenant will have the legal right to request to keep a pet in the home that the landlord can't unreasonably refuse. The Bill will also end the blanket ban on tenants who claim benefits and prevent landlords from refusing tenancies to families with children. 

Key points for landlords and tenants to consider:

Below is a brief overview of the key points the Renters Reform Bill will introduce: 

• Landlords will only be able to evict tenants in certain circumstances. Some valid reasons for eviction include anti-social behaviour, the landlord's wish to sell the property, or the landlord allowing a family member to live at the property.
• After tenants have been evicted, landlords must wait three months before putting the property back on the rental market.
• Renters who receive possession notices can no longer seek/receive immediate help from the council.
• A Private Rented Sector Ombudsman will be introduced who will provide fair, impartial and binding resolutions to many issues. It should prove quicker, cheaper, and less adversarial than the court system;
• A Privately Rented Property Portal will be implemented to help landlords understand their legal obligations and provide tenants with better information to make informed decisions before entering into a Tenancy Agreement. This Portal will also support the local councils. 

Amelia Ford, Tenant and Landlord Litigation Specialist at Warner Goodman, shared her thoughts: "A review of these laws was long overdue; however, the proposed changes could cause other issues amongst landlords and tenants. One point to consider is the possible difficulties landlords will likely face in regaining possession. The reform may cause landlords to sell their residential properties and deter individuals from investing in properties in the future. This, in turn, may put a further strain on local authorities who are required to house individuals who are homeless. Another issue to consider is that this reform does not mention measures to prevent unaffordable rent, showing that, once again, the Government has rejected calls for rent freezes."

Get in touch

If you have any questions or concerns regarding the Government's new Renters' Reform Bill, please do not hesitate to contact our Tenant and Landlord Litigation Specialist, Amelia Ford, on 023 8071 7429 or email ameliaford@warnergoodman.co.uk.