The Renters' Reform Bill: 8 Facts You Need To Know

Find out all you need to know about the Renters' Reform Bill, and what it means for landlords in England. Read more here: https://propertydivision.co.uk/the-re...

There's a lot to take in, but this video covers 8 crucial facts from the new legislation.

1. The end of Section 21 evictions/'no fault' evictions
2. New grounds for eviction under Section 8
3. Periodic Tenancies will replace ASTs
4. Rent increases restricted to once per year
5. The right to keep pets
6. A new ombudsman
7. A new landlord database
8. Additional legislation (no more blanket bans and the Decent Homes Standard)



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Audio Transcript:

First of all, Section 21 evictions are going to end - these are sometimes known as no-fault evictions. Under the new bill, landlords need a specific reason to evict, and must use the newly reformed Section 8 notices to do so.

Landlords will have new grounds to evict tenants using Section 8.
There are several key changes including: Evictions for repeated arrears - if the tenant has been in 2 months arrears 3 times in the last 3 years they can be evicted. This applies even if the tenant pays the rent by the time of the court hearing. Evictions for anti-social behaviour – in these cases, landlords will now be able to serve tenants a shorter 2-week eviction notice. Also, landlords can evict for personal reasons. For example, when they or their family members want to live in the property. Or, if they want to sell the property. However, they can only use these grounds after the first six months of the tenancy, and they must give a notice of 2 months.

Another big change is that all Assured Shorthold Tenancies - known as ASTs - will become Periodic Tenancies. These will roll on from month to month without any end date. This differs from the old system, where tenancies could become periodical at the end of a fixed-term contract. To end a Periodic Tenancy, the landlord or tenant must give notice. The tenant would need to give two months' notice to leave the property, while the landlord would have to use Section 8 rules to evict them for a reasonable cause. Under the new rules, landlords can only increase rent once a year, and after giving tenants a 2 month notice. This doubles the old rent increase notice period, which was only a month. To do so, they must use the Section 13 process and fill out a new form, which has yet to be created.

The new bill allows tenants to request having a pet in their home, and the landlord can't stop this without a reasonable cause. They have 42 days to respond to the request, which can be extended by a week if they need more information. However, tenants must acquire pet insurance, or pay the landlord an equivalent amount to cover potential property damages. Finally, the government is still deciding upon when landlords can reject a tenant's request for a pet.

Landlords must join a new, compulsory ombudsman authority. The ombudsman will address and resolve issues between landlords and tenants impartially. So, what powers will the Ombudsman have? they can order landlords to take remedial action on a property, pay a compensatory fine of up to £25,000, offer information, provide explanations or apologies for actions they've taken, and finally, reimburse rent if the property does not meet the right standards.

The bill introduces a new 'Privately Rented Property Portal' for landlords and tenants. This will be a database that holds key information about landlords and their properties. It can be browsed by potential tenants, landlords and the local council. There are four points to keep in mind:
First, it's compulsory - Landlords must be on this database to let their properties. Second, it'll display landlords' letting history and any past misconduct or sanctions. Third, landlord profiles must be kept up to date - Active landlords can freely rent their properties, but inactive landlords can't let or market their properties until their status has been updated.
Finally, it's built for local councils – so they can monitor landlord profiles, raise issues, or use it for enforcement action.

There are two pieces of legislation to be brought forwards alongside the new bill. The first one stops landlords 'blanket banning' certain tenants.
This is because it often leads to families or tenants on benefits being excluded from the private rental market. Under the new bill, this practice won't be allowed. Secondly, the Decent Homes' Standard will be applied to the private rental market. It already applies to the social housing sector, but it's soon to apply to the private market as well.