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Renters’ Reform Bill: What it means for tenants and landlords

Christina Hoghton
Written By:
Posted:
18/05/2023
Updated:
18/05/2023

The government has pledged to deliver safer, fairer and higher quality homes to tenants

Eleven million tenants across England will benefit from ‘safer, fairer and higher quality homes’, said the Government as it prepares to overhaul housing laws.

The Renters’ (Reform) Bill has been introduced to Parliament, delivering the Government’s 2019 manifesto commitment to abolish section 21 ‘no fault’ evictions which will empower renters to challenge poor landlords without fear of losing their home.

Tenants will also be given the legal right to request a pet in their home, which the landlord must consider and cannot unreasonably refuse. Landlords will be able to require pet insurance to cover any damage to their property.

The government also wants to apply the Decent Homes Standard to the private rented sector for the first time. And it will make it illegal for landlords and agents to have blanket bans on renting to tenants in receipt of benefits or with children – ensuring no family is unjustly discriminated against when looking for a place to live.

It will also strengthen councils’ enforcement powers and introduce a new requirement for councils to report on enforcement activity – to help target criminal landlords.

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Housing Secretary Michael Gove said: “Too many renters are living in damp, unsafe, cold homes, powerless to put things right, and with the threat of sudden eviction hanging over them.

“This Government is determined to tackle these injustices by offering a New Deal to those living in the Private Rented Sector; one with quality, affordability, and fairness at its heart.

“Our new laws introduced to Parliament today will support the vast majority of responsible landlords who provide quality homes to their tenants, while delivering our manifesto commitment to abolish Section 21 ‘no-fault’ evictions.”

New Ombudsman

A new Ombudsman will be introduced to provide quicker and cheaper resolutions to disputes, while a new digital Property Portal will enable landlords to understand their obligations and help tenants make better decisions when signing a new tenancy agreement.

The government said this will give confidence to good landlords, while driving the criminal minority out of business.

Martin Lewis, founder of MoneySavingExpert.com said: “We have long needed a statutory single private rental Ombudsman – so I’m pleased to see it in the legislative plans. After all, disputes are often between two individuals – landlord and tenant – rather than between companies, so it can be very personal and difficult to sort.

“Crucially, it won’t be voluntary, all private landlords will be required to join the Ombudsman, and it will have legal authority to compel apologies, take remedial action and pay compensation.”

What about landlords?

The government said that the new Bill also protects over two million landlords, making it easier for them to recover properties when they need to – so they can sell their property if they want to, move in a close family member, or when tenants wilfully do not pay rent.

Notice periods will also be reduced where tenants have been irresponsible – for example breaching their tenancy agreement or causing damage to the property.

The reforms will also strengthen powers to evict anti-social tenants, broadening the disruptive and harmful activities that can lead to eviction and making it quicker to evict a tenant acting anti-socially.

It also plans to reform the courts process to cut delays, which is a particular concern for landlord when Section 21 ends.

Ben Beadle, chief executive of the National Residential Landlords Association, said: “Responsible landlords need to be confident that when Section 21 ends, where they have a legitimate reason, they will be able to repossess their properties as quickly as possible. Without this assurance, the Bill will only exacerbate the rental housing supply crisis many tenants now face.

“Whilst we welcome the Government’s pledge to ensure landlords can effectively recover properties from anti-social tenants and those failing to pay rent, more detail is needed if the Bill is going to work as intended.

“Ministers must develop a plan to improve the speed and efficiency with which the courts process possession claims. Although the Government has accepted NRLA calls to digitise cases, staff numbers need to increase in the court system as well to meet the needs of these reforms.

“Likewise, the Government must recognise the serious concerns of landlords letting to students about open ended tenancies. Without the ability to plan around the academic year, students will have no certainty that properties will be available to rent when they need them.

“We will continue to work with the Government, MPs and Peers to ensure the Bill is workable and fair to both responsible landlords and tenants.”