Parliament passed a bill in July 2023 called the Renters Reform, that aims to make changes to the law regarding rented homes. The bill includes provisions to abolish new fixed term assured tenancies and assured shorthold tenancies. Instead, the bill proposes that all rental properties will be under a periodic tenancy – rolling by every month without having a specified end date.
It also imposes obligations on landlords and others in relation to rented homes and temporary and supported accommodation.
Why Is The Renters Reform Being Introduced?
The number of privately rented properties has doubled since 2004, with over four million properties now falling into this category.
According to the government, current legislation has resulted in some renters facing a lack of security, particularly when it comes to “no fault” evictions under Section 21. At the same time, responsible landlords are being undermined by a small number of criminal landlords.
While the government has introduced plans in its bill, it also has broader goals for the sector. It emphasises that nearly a quarter of private rented homes fail to meet basic standards and aims to implement a Decent Homes Standard in the private rented sector in the future.
What Is Included In The Renters Reform Bill?
Some of the themes covered in the bill include:
– Rent control measures to limit annual rent increases
– Increased tenant protections against eviction
– Stronger enforcement of housing standards and safety regulations
– Improved transparency in rental agreements and fees
– Enhanced protections for victims of domestic violence or other vulnerable populations
– Restrictions on discriminatory rental practices
– Accessible and affordable legal services for tenants facing eviction
– Creation of a state rental registry to monitor and regulate rental properties
– Incentives for landlords to maintain and improve rental properties
– Measures to prevent gentrification and displacement of low-income communities
Tips For Dealing With The Renters Reform Bill As A Landlord:
1. Stay informed
Stay updated on the progress of the bill and any changes in legislation. This will help you understand the potential impact on your responsibilities and rights as a landlord. The official government website is always a good place to start. We also cover topical landlord regulations in our blog.
2. Review your tenancy agreements:
Familiarise yourself with the new regulations regarding tenancy agreements, such as the prohibition on section 21 notices. Ensure your agreements comply with the law and consider seeking legal advice if needed.
3. Prepare for changes in rent increases:
Currently, there is a high demand for rental properties, which is good news for landlords. However, rental prices are also increasing overall. Therefore, it is important for landlords to research local rent trends, stay informed about the current market conditions, and maintain competitive rental prices to attract potential tenants during the current economic climate.
4. Maintain good tenant relationships:
Maintain open lines of communication and a positive relationship with your tenants. This can help prevent disputes and foster cooperation during any potential changes arising from the bill.
5. Adapt to longer notice periods:
Notice periods for rent increases are to be doubled. Rent increases will be limited to once per year and the minimum notice landlords must provide of any change in rent will be increased to two months. Landlords will need to adapt to these changes and bear them in mind.
Final Thoughts
This legislation is an important milestone in recognising the vital role that rental accommodation plays in our society and ensuring that renters have access to safe, affordable, and stable housing options. Landlords must ensure that they stay up to date with
legislation and are able to adapt to the changes that are going to be implemented in order to comply. Having the assistance of a letting agent will be hugely beneficial in ensuring that landlords deal well with these changes – especially when it comes to tenant communications.
This article serves as a guide only and does not constitute legal advice. Visit gov.ukfor more information.
