The Renters (Reform) Bill – What’s Happening?

This will see the Bill move forward to the reporting stage and third reading in the House of Commons, before then starting its progression to the House of Lords. 

Why introduce change?

The private rental sector is a key part of the UK housing market. According to government statistics (2021-2022) there were around 4.5 million households renting property in the UK – which is double the number of renters recorded in 2004. 

The Government made a commitment to ‘bring in a better deal for renters’ through the Bill and this has been a subject of great debate and scrutiny across the industry, since it was first tabled around five years ago.

The Bill is a significant piece of legislation and will result in one of the biggest reforms of the private rental sector in thirty years.  There are numerous reforms included in the Bill, however as a brief overview the following are under discussion:

• The Section 21 ‘No fault notice requiring possession’ is to be abolished
• New and tighter grounds for eviction, are to be implemented for breaches of tenancy and when a Landlord needs a property vacant
• Fixed term tenancies  are to be abolished, with periodic agreements being standard
• A new mandatory ombudsman is to be introduced for all agents and landlords
• A mandatory private rental portal is to be introduced for private landlords and tenants
• Rights for tenants to keep pets
• Outlawing restrictions on renting properties to tenants on benefits of those with children
• Decent Home Standard introduced to the private rental sector

The third reading in the House of Commons is the last chance for MP’s to debate the content of the Bill.  Over the course of the Bill’s progress through parliament, the government has presented 183 amendments to the Bill, therefore there will be alterations and changes to the above, before it finally becomes law.

Vanessa Carter, Associate Partner within Butler Sherborn, adds:

‘This is a big change in the world of lettings, however these changes will not all be implemented at the same time.  The government does acknowledge that changes to the court systems need to be made, in order to accommodate the abolition of Section 21.  Also with the mandatory ombudsman,  the government previously advised that they were still looking at different options as to how this will be implemented. As yet no formal decision on how this will look has been made.’  

For advice on this or any other lettings matters, contact Vanessa Carter Head of Lettings on 01993 822325 or vanessa@butlersherborn.co.uk

I think the message here is, yes renting reform is coming to England, but there is still a long way to go before it can be put into practice.  Therefore landlords and tenants have time with the current system as it is, to continue to enjoy their rental properties.’

Butler Sherborn will continue to provide updates as this progresses through the House of Lords in the coming months.