Renters Reform Update

What is included in the bill

1. Section 21 "no fault" evictions to be abolished

In place of section 21, the Bill outlines proposals to strengthen section 8. This allows a landlord to end a tenancy agreement early if they have a legal reason to do so. This includes:

• Missed rent payments
• Moving back in or selling the property
• Antisocial behaviour

2. End of fixed term tenancies

All Assured Shorthold Tenancies onto a single system of periodic tenancies. The Renters (Reform) Bill proposes that all rental properties will be under a periodic tenancy - rolling by every month without having a specified end date.

3. Pets

Tenants will be given more rights to keep pets in properties and can request permission to keep a pet in their home which landlords cannot unreasonably withhold

It does however indicate that a tenant must provide in writing confirmation that they have acquired insurance for their pet, or that they are willing to pay the landlord reasonable costs to cover the landlord's insurance in case of pet damage

4. Notification of a rent increase

Rent increases would be limited to once per year, and Landlords would need to give two-months’ notice. The current requirement is one month.

5. A new ombudsman

This will cover all private landlords and they “may” be required to join a government-approved ombudsman covering all private landlords regardless of whether they use a letting agent

6. New Property Portal

A new digital property portal will be introduced to "provide a single ‘front door’ to help private landlords and tenants understand, and demonstrate compliance with their legal requirements.“

It’s important to remember that nothing's set in stone just yet. This Bill will change as it makes its way through the House of Commons and House of Lords before it becomes law.

Timeline

FIRST READING 17 May 2023

The name of the bill was read out in the House of Commons

Where we are now

 SECOND READING Early Summer *NOW SUBJECT TO DELAY*

This is the first big step in the bill’s journey through parliament, when the bill will be debated.

No amendments are made at this stage.

COMMITTEE STAGE

This is a very important stage. A committee of MPs will scrutinise the bill line by line. This is the first opportunity for MPs to propose, debate and vote on suggested amendments and new clauses. The Committee will call for evidence as part of this stage.

Autumn 2023, at the earliest

REPORT, THIRD READING, CONSIDERATION OF CHANGES

Report Stage, MPs debate and, if needed, vote on suggested amendments and new clauses to the bill.

Third Reading: No amendments can be made at this point.

Once the Commons and Lords have agreed on the final version, it can receive Royal Assent.

Late Autumn 2023 at the earliest, more likely to be in 2024

ROYAL ASSENT

Once the Bill has been passed by both Houses of Parliament, it becomes law when it receives Royal Assent and this has been signified to Parliament. It will then become the Renters (Reform) Act.

At least six months after Royal Assent – Summer/Autumn 2024 at the earliest

FIRST IMPLEMENTATION DATE

NEW TENANCIES

This is the date the RRA will apply to new tenancies, apart from Section 21

 SECOND IMPLEMENTATION DATE

12 months later – Summer/Autumn 2025?

ALL TENANCIES

All existing tenancies would transition to the new system.

At this point, Section 21 would cease to apply to all renters on this date, whether or not their tenancy is already in place.