All you need to know, the Renters Reform Bill

The Renters Reform Bill - What Lettings Agents and Landlords need to know. The Renters Reform Bill has been a much talked about topic in recent months between lettings agents and managers. In this article we have rounded up some of the most frequently asked questions, with of course, their answers.

What is the Renters Reform Bill?

Put simply, The Renters Reform Bill is a piece legislation that’s been proposed by the Government with the intention to reforming the private rented sector (PRS), to level up the quality of housing, and to provide a better deal for renters. It’s been said to represent the biggest shake-up of the private rented sector in 30 years.

Why has the Renters Reform Bill been initiated?

The size and role of the Private Rented Sector has increased vastly over the last 3 decades. More people than ever have taken the opportunity to become Landlords. This has prompted the Government to expand and bring up-to-date legislation that was originally in place. The Government’s plan is to “bring in a better deal for renters” and to make certain that private rented homes meet basic standards. Additionally, the new laws that are being proposed are also there to “support the vast majority of responsible landlords providing quality homes to tenants while delivering our manifesto commitment to abolish Section 21 ‘no-fault’ evictions.”

When will the Renters Reform Bill become legislation?

While no official date has been confirmed by the government, it is estimated that the Renters Reform Bill will come into law on 1t October 2024. Before then the Bill must be passed through both Houses of Parliament where amendments will be applied. Following this stage there will then be an implementation phase which is usual, before a Bill becomes law. Time is running short for the Government because there is already a busy schedule. Recesses, party conference season and preparations for a General Election also have to be allowed for. There is a possibility that the Bill will not make it in time. If this is the case, the whole process will start again when a new Government is formed.

The Government states that implementation will be rolled out in two stages, and at least 6 months of notice will be given of the first roll out date after which all new tenancies will be periodic and governed by the new rules, which will include the changes relating to renting with pets. The date of this will be dependent on when the Bill has received Royal Assent. To avoid a two-tier rental sector and to make sure landlords and tenants are clear on their rights, all existing tenancies will transition to a new system on the second implementation date. There will be a gap of 12 months between the first and second date.

What should Lettings Agents and Landlords be doing now?

If you are a letting agent or landlord, there is no immediate action required at this stage. However, staying informed about the possible implications the Bill may have on property management for landlords will help you prepare for future legislative and compliance change

Can a Section 21 notice still be served to end a current tenancy?

The Renters Reform Bill is yet to become law, so at present Lettings Agents and Landlords are able to continue to serve the Section 21 Notice in line with both current legislation and their tenancy agreement.

Will possessing a property back become difficult?

If the Bill is passed, the way a Landlord regains possession of their property will change. Firstly the Landlord will have to give a specific reason stating why they are serving notice. There will be amendments made to the Section 8 Notice Process, it will be updated to include the specific reasons permissible within the new legislation. If the reasons the Landlord gives is not referenced within the amended notice then time frames could increase.

In what circumstances can a Landlord refuse pets?

The government has stated that since every situation is different within the diversity of the private rented sector, it would not be possible to legislate across the board so Landlords will be expected to consider fully all requested on a case-by-case basis. If reasonable there will be situations where pet requests can be refused for example, when a superior Landlord prohibits pets. However, when a disagreement arises a tenant can approach the Private Rented Sector Ombudsman or the court, who will make a final decision based on the evidence provided by both parties.

What happens if property is damaged by a tenants pet?

To protect the Landlord, the government is making amendments to the Tenant Fees Act 2019, so that landlords can require insurance to cover any damage caused by pets living in the property. In extreme cases when insurance does not compensate for the cost of damage, a landlord can take the tenant to court to recoup additional funds.

How will Landlords register with the property portal and what might happen if they ignore this requirement?

It will be a legal requirement for all Landlords to legally register their property on the Property Portal. They will be able to do this online. Enforcement action against private landlords that fail to join the Property Portal will be taken by Local councils.  If a landlord lets or advertises a property without it first being registered on the Property Portal, they can be fined up to £5,000 by the local council.

How much will registering on the Property Portal cost Landlords?

Landlords will be required to pay a fee to register on the Property Portal. The cost of registering is still to be decided by the Government, however they say they will work to ensure that the fee is proportionate and will represent good value to Landlords.

Final Thoughts on the Renters Reform Bill

This Bill really shouldn't make much difference to good landlords who are already letting professionally, although there will be the additional cost of joining the Ombudsman and registering on the portal.

The two most significant benefits are probably the strengthened grounds for possession and the Government's pledge to prioritise serious court cases, meaning landlords should be able to evict tricky tenants more quickly.