Renter’s Reform Bill Unpacked: What Landlords and Tenants Should Expect

Lucy Day

Marketing & Communications Executive

21 October 2024

A change is coming to the UK rental market, courtesy of the Renter’s Reform Bill: game-changing legislation that will revolutionise both tenant and landlord rights. At Helpthemove, we know how paramount it is to stay up-to-date on these changes, no matter if you are a tenant or landlord within this market. Here’s a breakdown of what’s important to know about the Bill and what this means for you.

What is the Renter’s Reform Bill?

First introduced in the Queen’s Speech last May 2022, the Renter’s Reform Bill forms part of the UK government’s commitment to an overhaul of the private rental sector in England. This aims to ensure that the housing system is much fairer, more transparent, and more secure, with both tenants and landlords clearly informed about their legal rights. Let’s get into the key aspects of the Bill and how they will affect tenants and landlords.

Key Changes for Tenants

Abolishment of Section 21 ‘No-Fault’ Evictions
The most highly awaited change in the bill is indeed the abolition of Section 21, a clause allowing landlords, upon the end of a fixed-term contract or during a periodic tenancy, to remove a tenant without giving any reason. This has resulted in renters being more at risk of being displaced on very short notice. The erasing of this clause will, in the long term, give more security and stability to tenants.

Greater Protection for Eviction
The prohibition of no-fault evictions has been seen as good news for the tenants, but the Bill will strengthen the rights of landlords to get back into their properties in certain circumstances, including those where the landlord wants to sell the property or to occupy it themselves.

Better Standards via the Decent Homes Standard
The Renter’s Reform Bill represents the first-ever extension of the Decent Homes Standard into the private rental sector and will force standards upwards. It means that tenants will be guaranteed a better place to live than under the previous legislation, as landlords will be required to ensure the properties that they let are safe, secure, and well-maintained.

Introduction of Private Renters’ Ombudsman
A new, independent Private Renters’ Ombudsman will be set up to support tenants and landlords in resolving disputes. It will provide an easily accessible, free-of-charge service for tenants on property conditions and tenancy agreements, offering a fairer and quicker solution to many problems. The aim is to avoid putting pressure on the already strained court system, with a view to speedier settlements.

Key Changes for Landlords

Abolition of Section 21

The abolition of Section 21 marks a significant shift for landlords in the UK. With this change, landlords can no longer evict tenants without a valid reason. Instead, they’ll be leaning on Section 8 of the Housing Act, which allows repossession based on specific grounds like persistent rent arrears or anti-social behaviour. Although more grounds for eviction will be introduced, the entire process will be more regulated, meaning landlords must now have solid reasons for eviction and follow stricter legal guidelines.

Periodic Tenancies Will Replace Fixed-Term Agreements

Under the new reforms, all tenancies will start as periodic, enabling tenants to depart with just two months’ notice, as long as they are in situ for at least four months. For landlords, this introduces an element of unpredictability, making it essential to adapt to shorter-term agreements and manage potentially higher turnover in their properties.

Accountability for Property Standards

Landlords will be held to higher standards with the introduction of the Decent Homes Standard, a benchmark that was previously applied only to social housing. This means that ensuring properties are in good condition, with proper heating, ventilation, and repairs, is now a must. Falling short could lead to penalties, so keeping up with maintenance is crucial.

Regulated Rent Increases

The new rules will also limit how often rent can be increased, restricting it to once per year. Tenants will have the right to challenge unfair rent hikes through the newly established Ombudsman, aiming to create more transparency and fairness in rental pricing.

How Will These Changes Impact Landlords?

The Renter’s Reform Bill brings significant administrative changes for landlords. The loss of Section 21 means meticulous documentation of any grounds for eviction is key, as the process is now under more scrutiny. Thankfully, the government is providing more clarity around legitimate reasons for regaining possession, striking a balance between tenant protections and landlord rights.

Final Thoughts

The Renter’s Reform Bill is set to reshape the UK rental market, offering greater security for tenants while clearly defining responsibilities for landlords. As this legislation inches closer to becoming law, both landlords and tenants need to prepare for the upcoming changes. Helpthemove is dedicated to keeping you informed and ready for the future of renting in the UK.