The long-anticipated Renters’ Reform Bill has been presented to Parliament, aiming to enhance the rights of renters in the UK. This comes more than four years after the government pledged to eliminate Section 21 evictions. A second reading is scheduled for tomorrow.
The bill follows promises made by former Prime Minister Theresa May in 2019 to scrap Section 21 evictions, and later that year, Boris Johnson pledged a better deal for renters in the Conservative party’s general election manifesto, including an eviction ban.
After the publication of a rental reform white paper in summer 2022 and six different housing ministers since 2021, the draft legislation has finally reached Parliament for discussion. Michael Gove, the Secretary of State for Levelling Up, Housing and Communities, maintains that the proposed bill will “change the way the relationship between landlords and tenants works, providing tenants with new protection, which should ensure they are better protected against arbitrary rent increases.”
According to Gove, the Renters’ Reform Bill will enable tenants to confront substandard landlords without jeopardising their homes. The legislation will also bolster the ability to evict anti-social tenants by expanding the scope of disruptive and harmful actions that may result in eviction and expediting the eviction process for those behaving anti-socially.
To ensure the new tenancy system benefits both landlords and tenants, it will be launched alongside a restructured court process. More of the eviction process will be digitised in cases that reach the courts, reducing delays. A new ombudsman will be established to oversee dispute resolution, and a digital “property portal” will be launched to help property managers understand their obligations.
Gove remarked: “Too many renters are living in damp, unsafe, cold homes, powerless to put things right, and with the threat of sudden eviction hanging over them. This government is determined to tackle these injustices by offering a New Deal to those living in the Private Rented Sector; one with quality, affordability, and fairness at its heart.”
Tenants will gain the legal right to request a pet in their home, which landlords must consider and cannot unreasonably refuse. Landlords may require pet insurance to cover any property damage.
Furthermore, the government will introduce legislation as part of the Bill to apply the Decent Homes Standard to the private rented sector, outlaw blanket bans on renting to benefit recipients or families with children, and strengthen councils’ enforcement powers and reporting requirements.
The Renters’ Reform Bill is a crucial component of the government’s mission to level up across the nation and complements broader housing reforms in the Social Housing Regulation Bill and Building Safety Act, which address systemic issues identified after the Grenfell Tower tragedy.
INDUSTRY REACTION
Damian Thompson, Director of Landlord at Nationwide Building Society:
“Nationwide is pleased that the government has released the long-awaited Renters’ Reform Bill. This will provide much needed clarity for landlords and tenants, and support reform and modernisation for the private rented sector. We welcome the abolition of Section 21 ‘no fault’ evictions’ and replacing this with a clear list of reasons for eviction, such as anti-social behaviour. We hope this will be supported by court reform to speed up the eviction process when something has gone wrong during a tenancy.
“While it’s good to see the Bill published, government must not lose sight of the mounting pressure landlords face through interest rate rises, rental arrears and the need for certainty over increased EPC requirements. If these are not adequately addressed, it will drive good landlords out of the sector, further exacerbating the undersupply of privately rented accommodation.”
Rebecca Marsh, Property Ombudsman, The Property Ombudsman:
“The Renters Reform Bill, as a package, is the most significant set of reforms for the private rented sector in a generation. Requiring landlords to have a reason to evict a tenant while at the same time giving them enhanced abilities to deal with anti-social behaviour, seeks to rebalance the landlord/tenant relationship. Underpinning this is the need to reduce court times and the introduction of a Landlord Ombudsman, both of which will play a fundamental role in ensuring these reforms work on a practical level.
“We look forward to continuing our work with the Department to help them develop a Landlord Ombudsman that not only resolve disputes, but also helps tenants and landlords understand their roles and responsibilities and supports the wider regulatory landscape and the court reform.”
Ben Beadle, Cheif Executive, NRLA:
“The Government must recognise the serious concerns of landlords letting to students about open ended tenancies. Without the ability to plan around the academic year, students will have no certainty that properties will be available to rent when they need them.”
Timothy Douglas, Head of Policy and Campaigns, Propertymark:
“The Bill will bring much needed clarity to letting agents, their landlords and tenants. Propertymark will support the UK Government to ensure the specific details work in practice.
“It is important implementation is well planned and managed as these reforms are significant for the sector.”
Angharad Trueman, Group Lettings Director at Andrews estate agents:
“The Renters’ Reform Bill is the biggest overhaul of the private rental sector in 30 years and will aim to right the imbalance between landlords and tenants.
“We cautiously welcome these changes, as there is clearly scope to further raise standards and strengthen the rights of renters. At the same time, we need to avoid unfairly tarring all landlords with the same brush.
“The country depends on a strong private rental sector to provide sufficient affordable housing for the people who live here.
“Actions that make it harder or more expensive for landlords to do this, run the risk of reducing the number of properties available. If this makes current supply challenges worse, it could cause rental prices to rise further still.
“At Andrews, our focus on striving for higher standards is key to driving up the quality of rental accommodation. We will work with the new legislation to continue to do this and in turn foster stronger relationships between landlords and their tenants.”
Oli Sherlock, director at Goodlord:
“The rental sector has never been under more pressure. The ongoing delays to the publication of this Bill have caused a lot of uncertainty for the market at a time when it could ill afford it. Even now, we’re not completely clear on what the final version of this legislation will contain, but at least we have more clarity on the contours after years of speculation.
“There are really positive steps to celebrate here when it comes to tenants’ rights. And we’ve seen some softening of areas that were giving landlords major concerns – such as the ability to evict anti-social tenants or those who consistently miss rental payments. But we can’t hope to sustainably reform and strengthen the lettings industry without meaningfully addressing the structural issues facing the market.
“Right now, all the anecdotal evidence points to a rising number of landlords deciding to sell up. This, combined with a chronic lack of new rental homes being built, is creating a supply and demand issue that is driving up rental prices, creating despair for tenants seeking new homes, and resulting in market conditions which this Bill hasn’t been designed to fix. I think there are also valid concerns around whether the courts will be able to cope with the rise in cases this Bill will likely create, even with increased digitisation.
“The government should not see the publication of this legislation as a job done. It should be the first step in a longer line of urgent changes that are needed. A healthy rental market requires empowered, protected tenants as well as fair-minded, incentivised landlords in order to function. Any legislation that addresses one without the other won’t make the difference it needs to.”
Timothy Douglas, head of policy and campaigns, Propertymark:
“Reforms to the private rented sector in England have been long awaited and the Bill will bring much needed clarity to letting agents, their landlords and tenants. Propertymark will support the UK Government to ensure the specific details work in practice for those on the ground, whilst providing both security and fairness for both parties of the rental agreement. It is also important implementation is well planned and managed as these reforms are significant for the sector.”
RICS spokesperson commented:
“The Royal Institution of Chartered Surveyors (RICS) supports the government’s goal of improving tenants’ protections and the quality of homes in the private rental sector. However, we remain concerned for tenants as to any knock-on effects, as our RICS Residential Survey shows rents continuing to rise alongside the supply of rental properties dropping.
“The reforms, therefore, must be delivered in such a way that gives confidence to landlords and does not result in them leaving the sector, further exacerbating the challenges for tenants who are already struggling to find quality affordable homes.
“Landlords have stressed to RICS that proposals must be backed by process changes including an improved court process to make it easier for them to take back a property in legitimate cases. The creation of the new property portal is welcome in that it will provide both tenants and landlords with valuable information, however it will require support from Government to get going.
“Homes of a good standard benefit all parties, and we welcome the move to improve the quality of homes in the PRS. However, we would like to see joined-up thinking between new EPC measures and decent homes so that landlords can plan for the introduction of both and tenants know what to expect. The delay in the introduction of new energy standards for the private rental sector (PRS) demonstrates the importance of giving landlords sufficient time to prepare and undertake work. Surveyors have a huge role to play in this area, in ensuring that any standard can be applied consistently, providing reassurance for both landlords and tenants. We look forward to working with government on these issues.”
