The biggest rental reform in three decades will scrap no-fault evictions, restrict rent increases to once a year and make it easier for tenants to have pets.
The Rental Reform Bill, which was announced on Wednesday, is being debated in parliament today (Thursday), but won’t come into force for some time.
Megan Eighteen, Operations Director at Location Location estate agency in Stoke Newington and a regional executive for Propertymark described the Bill as: “The biggest change in my life time since the housing act was created.”
Welcoming many of the changes, she added:
“Big changes are always concerning but good agencies like Location Location already operate such high levels of care that these legislative changes will feel like little quakes in the ocean rather than tidal waves.”
Until now, landlords could end assured shorthold tenancies without reason but, when the new bill comes into force, the so-called ‘no-fault evictions’ won’t be permitted. Among the valid reasons for eviction are unpaid rent and damaging the property. Landlords will be able to regain possession if they want to sell the property or move the immediate family back in.
Megan added:
“Very few landlords serve notice for no reason. Landlords can feel comfortable knowing that should they need to sell their property or move into it, there are provisions in place for them to do so. If it’s a bad tenant, if they’re not paying rent or the landlord’s circumstances change, that’s ok – there are grounds for possession.”
It’s hoped the abolition of Section 21 (no-fault eviction notices) will enable tenants to report problems about their homes without fear of eviction; improving communication and trust between tenants and landlords. And landlords will have to give two months’ notice of rent increases.
Under the reforms, landlords can only refuse pets if there’s a restriction in the building’s convenance or superior lease. They should be able to insist that tenants take out insurance to cover any damage caused by pets.
Megan added:
“I really welcome pets in property – rescue centres across the country are at breaking point because they’re taking in pets which aren’t permitted in homes.”
The Renters Reform Bill will also introduce a new Private Rented Sector Database – all landlords will have to register themselves and their property on a digital portal service. The aim is to create a single platform to help landlords understand their obligations and show they’re complying with the law. For tenants, the portal will offer all the information they need to make an informed decision about their rental and take action with the council or Ombudsman if needed.
Further rental reforms are expected in the near future. The government plans to make it illegal for landlords and agents to have blanket bans on renting to tenants in receipt of benefits or with children – ensuring no family is unjustly discriminated against.
Plans are also the offing to make all rented homes more energy efficient (they currently have to have a minimum energy efficiency rating of E and this is expected to move to C by 2028).
Vicky Bibiris, Managing Director of Location Location, added:
“Improving energy efficiency is great for the environment and will reduce costs for tenants – for landlords the cost of complying could amount to thousands of pounds. We’ll be working with our landlords and an engineer to assess what will need to be done and helping to make those improvements bit by bit when tenants are going away to minimise disruption.”
