After years of delays and uncertainty the eagerly awaited Renters Reform Legislation will be introduced to parliament today (17-09-23) by the government.
The proposed legislation bieng introduced comes after the release of the “A Fairer Private Rented Sector” white paper that was published in June 2022. The main areas of the paper were:
• Abolish Section 21 evictions and deliver a simpler tenancy structure with reformed grounds for possession.
• A new mandatory Ombudsman covering all private landlords to improve dispute resolution.
• Better compliance and robust enforcement through a new digital Property Portal.
In addition to the above the government has also added the following elements designed to protect the 11m tenants across England as well as making it easier for landlords to take back possession of their property in the event of anti-social behaviour and sever rent arrears.
• Tenants will also be given the legal right to request a pet in their home, which the landlord must consider and cannot unreasonably refuse.
• The Decent Homes Standard will be applied to the private rented sector for the first time.
• It will be illegal for landlords and agents to have blanket bans on renting to tenants in receipt of benefits or with children.
• Landlords will be able to gain possession of their property if they want to 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.
• A new court process will be introduced “for the minority of evictions that do end up in the courts, more of the process will be digitised – reducing delays.”
Housing Secretary Michael Gove says: “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”.
When it is introduced to Parliament, the Bill will be published in full, which is known as ‘first Reading’. It is also the first stage of a Bill’s passage through Parliament. The next step is Second Reading, which is the first opportunity for MPs to debate the general principles and themes of the Bill. This is expected to take place week commencing 5 June 2023.
Commenting on the proposed legislation Stephen Butterly Head of Property Management at City Residential highlighted “Whilst we broadly welcome improvements to the rental sector bieng proposed by the new legislation (such as a new ombudsman and a digital Property Portal) the abolition of Section 21’s may well cause many landlords to exit the sector thereby reducing demand at a time when more supply is needed not less”. Stephen also emphasized that the improvements bieng suggested to protect landlords in terms of anti-social behaviour and non-payment of rent needs to be properly analysed “With any new legislation we need to see the detail behind the headlines before we understand how/if the new rules can work in the real world”
One of the proposals highlighted in the new legislation that may cause issues to us here at City Residential, and any other agents focused on city centre markets, is the introduction of the ability for tenants to have a pet in their rented home. With many leases on city centre apartments banning owners and tenant’s from having pets further consideration will be required to understand how this will work going forward.
