If you are a landlord or are thinking of investing in or letting property then you will probably have heard about the Renter’s Reform Bill and be wondering about how and when it will affect you. The first thing to say is don’t panic - the measures still need to be debated in parliament, where there is still the opportunity for the case to be made that the lettings industry forms a crucial part of the British economy and homes for millions of people so the implications of all changes need to be carefully considered. When the bill does finally become law, which is likely to be at the beginning of 2024 at the earliest, there will be a likely 12 month delay before existing tenancies are affected.
The most publicised headline from the bill is the scrapping of Section 21 or so-called “no-fault” evictions. Section 21 gives landlords the ability to ask their tenants to leave with 2 months’ notice without needing to state why and is currently the easiest way to get your property back. Under the new system landlords will need to rely on Section 8 notice where qualifying grounds have to be met in order to obtain possession. Clearly change is required to the current system if this is to be the only available route given existing court delays: the Government are promising strengthened grounds, especially concerning tenants’ anti-social behaviour, and judicial processes streamlined through digitisation. We will be watching closely to understand what the mechanisms will be for landlords who legitimately require their property back and how they will work in practice – it’s vital landlords still have the ability to protect their own interests.
A new periodic system of tenancies is proposed, which means the end of fixed terms. This is intended to give tenants more flexibility to move if their needs change. Whilst increasingly landlords have wanted longer-term fixed periods for security and to avoid changeover costs, and therefore this news could be unwelcome, it’s reassuring that the tenant demand remains very strong so there is no need for concern if you need to re-let sooner than expected. It’s also notable that tenancy lengths have increased since Covid; the majority of renters wish to stay longer term anyway, especially in light of the challenge of getting on the housing ladder due to increasing mortgage rates and missed or reduced housebuilding targets.
When it comes to mandating that private landlords must be a member of an Ombudsman and submit data about their property on a public portal, this protection for tenants and drive to improve standards in the sector can be seen as positive so long as measures are reasonable, consistent and clear. The important role of managing agents will remain steadfast as we continue to educate landlords on new regulations, ensure compliance and resolve tenancy issues.
The last point of note is that landlords will not be able to unreasonably withhold permission for renters to keep pets, with the caveat that pet insurance needs to be provided as protection.
In summary then, the introduction of the Renters Reform Bill means it will therefore be more vital than ever to choose an agent who will take the utmost care in sourcing tenants who will always treat your property with respect, regardless of any pets or kids who may come along. To hear more about our landlord services, or just to have a chat about Lettings, contact Liz, our Lettings Director, on 07547 672849 or email liz.gamlen@hatandhome.co.uk.