In May 2023, the government introduced the Renters (Reform) Bill 2023, aimed at addressing the housing crisis in England and establishing a more equitable rental market. The bill is seen as a move to balance the scales, currently tipped in favor of landlords, by enhancing tenant rights.
As it stands, the bill is in its preliminary stages and might undergo substantial revisions before it’s enacted. Despite potential changes, it’s projected that the bill will be implemented around October 2024
Key Impacts of the Bill:
• Elimination of Assured Shorthold Tenancies: The bill proposes a single, more secure tenancy model, excluding long leaseholders. Tenancies under this model can only be terminated by the tenant vacating the property or the landlord meeting specific legal criteria.
• Removal of Section 21 Notices: This part of the Housing Act 1988, which allows landlords to evict tenants without cause, will be abolished.
• Tenancy Period and Notice Requirements: Tenancies will be periodic, with durations of either a month or up to 28 days. Tenants can terminate the agreement with two months’ notice, which must align with the tenancy period’s end. Landlord-imposed notice formats will be unenforceable.
• Adjustments to Section 8 Notices: Landlords must cite at least one legal ground when seeking eviction. New grounds will be added, including provisions for landlords intending to sell or requiring the property for personal or family use. Modifications will also address rent arrears, specifically excluding unpaid universal credit from calculations and extending the notice period for possession proceedings.
• Rent Review Changes: Rent can only be increased annually, following a statutory process that requires two months’ notice to the tenant. This aims to make rent adjustments more transparent and fair.
• Pet Policies: While tenancy agreements often restrict pets, landlords will need to consider pet requests reasonably. They may require tenants to have insurance for pet-related damages.
• Tenancy Agreement and Deposit Regulations: Landlords must provide tenants with a written agreement detailing the terms of tenancy. Deposit regulations are tightened, emphasizing the need for deposits to be held in authorized schemes.
• Property Portal: A new online portal will register landlords and properties, which must comply with registration requirements before properties can be marketed. Failure to register could lead to prosecution.
Puran Investment is keenly attuned to the evolving landscape of the rental market, particularly in light of the proposed Renters Reform Bill. Our company prides itself on not just adhering to current regulations but also in anticipating changes that could impact our operations and the interests of our clients.
As this bill progresses through its legislative journey, potentially reshaping the framework within which we operate, Puran Investment remains vigilant. We are committed to staying ahead of developments, ensuring that our practices not only comply with the law but also serve the best interests of our tenants. This proactive approach reflects our dedication to transparency, fairness, and excellence in the rental market.
