How Will This Affect Tenants & Landlords?
The details of the new Renters Reform Bill have been revealed, bringing significant changes to the rental sector. Below, we outline the key points of the bill and how they will impact both tenants and landlords. For more detailed information, visit the official government page: Gov.uk - Guide to the Renters Reform Bill.
Key Points of the Bill:
- Removal of fixed-term tenancies
- A new, more narrowly defined student ground
- A single stage of implementation for the removal of Section 21
- Expansion of Rent Repayment Orders
- Fines to increase in line with inflation
Additional Reforms:
- A new Ombudsman for landlords
- Private Rented Sector (PRS) Database
- Protections against tenant discrimination
- Controls on rental bids and offers
What Does This Mean?
1 Removing the Section 21 Notice
Under the new bill, landlords will no longer be able to evict tenants without a valid reason. However, landlords can still gain possession of a property under “specific circumstances defined in law” through reformed grounds for possession, which are based on mandatory or discretionary reasons. This process will operate similarly to the current Section 8 notice.
2 Private Rented Sector Landlords Ombudsman & Property Portal
All private landlords, including those using management agents, will be required to join the new Landlords Ombudsman scheme. This will provide a clearer avenue for resolving disputes between landlords and tenants.
Additionally, a new Property Portal will be created, allowing private landlords to easily understand their legal obligations and providing tenants access to crucial tenancy information, including safety certificates.
3 Increasing Rent
While rent increases will still be permitted, the Section 13 notice will be removed. All future rent increase requests will need to be made via a government-published form, and tenants will have the right to dispute the increase by taking the case to a first-tier tribunal.
4 Enforcement Penalties
Local councils will have the authority to issue civil penalties to landlords who fail to comply with the new reforms. For instance, failure to register with the Property Portal or the Ombudsman, or misusing the new grounds for possession, could result in penalties.
- First/minor non-compliance: Up to £5,000 civil penalty
- Serious/repeat non-compliance: Up to £30,000 civil penalty
The Biggest Change to the Rental Sector in 30 Years
These reforms aim to provide greater security for tenants while ensuring landlords maintain their properties to a “Decent Home Standard” and comply with the new regulations.
It is essential to understand the new proposed bill thoroughly and seek appropriate advice from your local letting agents.
If you need more information or advice, don’t hesitate to contact AM Lettings on 01625 921400.