The end of “no fault” evictions: a guide to The Renters (Reform) Bill

The Renters (Reform) Bill was recently introduced to Parliament, after going through nearly five years of development. The new Bill will bring substantial changes to the private rental market, giving tenants a much greater security of tenure. It is important for all landlords, tenants and agents to be aware of the upcoming changes.

The key changes:

• Abolishment of Section 21 ‘no fault’ evictions (i.e. those based only on giving two months’ notice after the expiry of the fixed term);
• Introduction of additional grounds for possession for landlords to rely on and changes to some of the notice periods for current possession grounds;
• Abolishment of fixed term assured shorthold tenancies and a move to periodic tenancies with no end date;
• Requirement for tenants to give landlords two months’ notice to end the tenancy;
• Requirement for landlords to serve a standard form of notice to increase rent only where the market rent rises. Tenants will be able to dispute the increase by referring the matter to the First-tier Tribunal;
• Requirement for landlords to provide tenants with a written statement prior to the commencement of the tenancy;
• Creation of a private rented sector database for landlords to register with before marketing a property to help landlords understand their obligations and demonstrate compliance and for tenants to be able to access the information;
• Introduction of the Private Rented Sector Ombudsmen as a redress scheme for landlord and tenant disputes which is free for tenants to use and can require landlords to, amongst other things, pay compensation of up to £25,000;
• Introduction of financial and criminal penalties for landlords who fail to comply with their obligations;
• Introduction of a right for tenants to request consent to keep a pet in the property, which must be considered within 42 days and cannot be unreasonably refused. Landlords can require the tenant to obtain pet insurance or cover the landlord’s costs of doing so;
• Creation of a new housing court; and
• Amending Schedule 1 Housing Act 1988 to prevent a fixed term tenancy granted for a term over 7 years from being an Assured Tenancy. This will stop Shared Ownership leases from being classified as assured tenancies and therefore, importantly, will mean that an RP with knowledge that the terms of a shared ownership has been breached will have to stop collection of the monthly rent or otherwise face arguments of ‘waiver’.

The new bill has to be scrutinised in Parliament and may be subject to change. As there is no date set for when the new bill will be introduced it is crucial to stay updated about the reforms as and when they develop. We will, therefore, be hosting a webinar to discuss the Renters (Reform) Bill which will take place on Thursday 21 June 2023 at 12noon. This webinar is for landlords, tenants and letting agents and we invite you to join in the discussion. Book your place here.

For further information, please contact Alice Harris in the Property Litigation department.