All You Need to Know About the New Renters’ Reform Bill 

The Renters’ (Reform) Bill is big news for landlords and tenants. It’s set to change the face of the private rental sector with a long list of reforms which are crucial for landlords to understand.  It builds on the Fairer Private Rented Sector white paper introduced in June 2022. 

If you’re a landlord in Bermondsey, Borough, London Bridge or elsewhere in South London, you must keep up with the new legislation to prepare for these significant changes. Keep reading to find a summary of the most important points in the new bill. 

NOTE: This bill has now been scrapped due to the arrival of the new Labour Government. Instead, they have created their own version of the bill – with important differences – which you can read about in our article here: Renters Rights Bill Explained for Landlords

When Will The Renter’s (Reform) Bill Become Law?   

The Renters’ (Reform Bill) will probably become law in a year. Typically it takes 12 months for a bill to be introduced to Parliament, face scrutiny and be amended. However, the government is committed to enforcing some of the reforms in stages. For example, there will be an 18-month transitional period before all tenancies move to the new system. Equally, some provisions will take time to implement. For example, the new ombudsman for landlords and the landlord database will be set up “as soon as possible” after royal assent is given to the bill.  

The Renters’ (Reform) Bill: Changes To Section 21 & Section 8 Evictions 

The Renters’ (Reform) Bill changes the way that eviction works.

What Is Happening To Section 21 Evictions?  

Section 21 (‘no fault’) evictions will be abolished. Section 21 currently allows landlords to evict their tenants with two months’ notice if they are on a Periodic Tenancy agreement without a specific reason. Most long-term renters would use these Periodic Contracts, so the new bill has addressed this widespread issue. Once the new bill becomes law, landlords must use Section 8 notices to evict tenants instead of Section 21. 

How Will Section 8 Evictions Change? 

Section 8 eviction rules will be reformed to help landlords repossess their properties where necessary. For example, landlords will be able to use Section 8 to repossess the property to sell it or for close family to move in. 

Equally, Section 8 will make it easier for tenants to be evicted for anti-social behaviour, requiring only a 2-week notice period. There is also a provision to evict tenants for ‘repeated serious arrears’. If tenants fall into arrears of more than two months three times in 3 years, they will be liable to eviction, whatever their balance at the time of their court hearing.   

Periodic Tenancies To Replace ASTs 

Under the new rules, all Assured Shorthold Tenancies (ASTs) will become Periodic Tenancies instead. This means all tenancies will roll over from month to month and will not be fixed-term. 

Because of this, rules about rent review clauses will change. Under the new system, the landlord can only issue rent increases with two months’ notice and only once per year.   

For Periodic Tenancies to end, the landlord or tenant must make a move to stop it. Tenants must give two months’ notice at any time during their tenancy. Landlords must give two months’ notice under section 8 and provide a valid reason for eviction.

Periodic tenancies will apply to student lets  

The Renters’ (Reform) Bill allows official university accommodation to be exempt from the new rules about Periodic Tenancy agreements.  However, many students rent with private landlords. Student landlords will not be able to insist on a 12-month contract, and could face a two-month void period over the summer months if their student tenants give notice following the final exams in June.

A New Property Ombudsman  

Landlords must join a new ombudsman authority. The ombudsman aims to address and resolve issues between landlords and tenants impartially and enforce specific actions when required.   

The ombudsman can order landlords to:   

• Take remedial action on repairs and maintenance to their property   
• Pay fines up to £25,000    
• Offer information    
• Provide explanations & apologies   
• Reimburse rent if necessary  

Tenants will be end-user of this scheme. However, landlords must be part of the scheme and pay to be a member. 

A New Landlord Database & Portal 

The Renter’s (Reform) Bill will introduce a ‘Privately Rented Property Portal’ for landlords and tenants. This will be an online hub of information and advice where tenants and local authorities can access critical information about landlords and the properties they let. This database will be compulsory for landlords. Those with an ‘active’ status can let their properties, but those marked as ‘inactive’ will not be able to do so until they update their essential information.  

The Right To Keep Pets In A Rental Property 

The Renters’ (Reform) Bill is great news for pet owners. It allows tenants to request permission to keep a pet in their home, and unless they have a reasonable excuse, landlords cannot deny this request.  

Landlords will have 42 days to refuse the request, with a week’s extension, should more information about the pet be required. Where there’s a conflict of interest, the tenant can raise the issue with the new ombudsman authority.  

However, tenants must acquire pet insurance or pay the landlord an additional deposit to cover any potential property damage. The 2019 Tenant Fees Act will be amended so this can be a ‘permitted payment’.  

What Other Legislation Does The Renters’ (Reform) Bill Include? 

As part of the Renters’ (Reform) Bill, two other pieces of legislation will be moved forwards. Firstly, the Decent Homes Standard will apply to private renters. Currently, this legislation applies to social housing only. The decent homes standard aims to cut out poor quality homes from the rental market and ensure all landlords enforce minimum standards for their properties.

Secondly, blanket bans on particular groups of tenants will be prohibited. This means that landlords cannot exclude families and DSS tenants from consideration when marketing their properties. 

If you’re concerned about this new legislation, why not talk to our team? We can help you understand what the new laws may mean for you, your tenants and your rental properties. That way, you can continue confidently renting your properties despite the housing market changes. 

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