Understanding the Renters Reform Bill: What Landlords Need to Know
- DNB Future Properties
- Nov 3
- 6 min read
The Renters Reform Bill has officially become law, bringing significant changes to the private rented sector in England. The timeline for these changes are still to be confirmed (at the time of writing).
Designed to create a fairer and more secure system for tenants, these reforms will undoubtedly impact how landlords manage their properties and interact with their renters.
Here’s a breakdown of the key points every landlord needs to understand:
1. The End of "No-Fault" Evictions (Section 21)
Perhaps the most impactful change is the abolition of Section 21 evictions. This means landlords will no longer be able to evict tenants without a reason, typically at the end of a fixed-term contract.
• What this means for you:
You will need to rely on the reformed Section 8 grounds for possession. These grounds are being expanded to include new reasons for landlords to reclaim their property, such as wanting to sell the property or move into it themselves.
• Actionable insight:
Familiarise yourself with the updated Section 8 grounds to understand when and how you can legally seek possession of your property.
2. Introduction of Periodic Tenancies as Standard
The new law will transition all assured shorthold tenancies to a single system of periodic tenancies. This means tenancies will roll on a monthly basis from day one, offering tenants greater flexibility.
• What this means for you:
Fixed-term tenancies will largely be a thing of the past. Tenants will be able to give two months' notice to leave at any point.
• Actionable insight:
Review your tenancy agreements to ensure they align with the new periodic structure. Focus on building strong relationships with tenants to encourage longer stays.
3. Stronger Grounds for Possession for Landlords
While Section 21 is being abolished, the government is committed to strengthening Section 8 grounds for possession to ensure landlords can still regain their properties when legitimate reasons arise.
• What this means for you:
New mandatory grounds for possession will be introduced, including for landlords who want to sell their property or move in. There will also be stronger grounds to tackle anti-social behaviour and repeated serious arrears.
• Actionable insight:
Keep meticulous records of any tenant breaches, such as rent arrears or anti-social behaviour, as these will be crucial if you need to use Section 8.
4. Ban on Rent Bidding Wars
Landlords and agents are now prohibited from soliciting or accepting offers of rent that are higher than the initial advertised price.
• What this means for you:
You must advertise your property at a fixed price and stick to it. You cannot encourage or accept offers above the listed rent.
• Actionable insight:
Set your initial asking rent strategically based on market research. The focus of tenant selection will shift entirely to suitability and affordability, not who can pay the most.
5. Annual Rent Increases
Rent increases are being strictly limited to once per year, and a minimum of two months’ notice must be given to the tenant.
• What this means for you:
You lose the flexibility to implement rent increases more frequently, and the notice period is clearly mandated. Tenants have the explicit right to challenge what they consider an unfair increase via the First-tier Tribunal.
• Actionable insight:
Plan your pricing a year in advance. Ensure any proposed rent increase is justifiable as being in line with the local market rate, as you may need to defend it at a Tribunal.
6. Discrimination Protection
Landlords will be legally prevented from implementing blanket bans and discriminating against prospective tenants based on whether they have children or receive benefits (often referred to as 'No DSS' or 'No Kids' policies).
• What this means for you:
You must consider all applicants on an individual basis and base your selection on criteria such as the sustainability of the tenancy and an individual's suitability, regardless of their family status or income source.
• Actionable insight:
Review all advertising copy and tenant application forms to remove any potentially discriminatory language or blanket exclusions to ensure full legal compliance.
7. A New Private Rented Sector Ombudsman
A new independent ombudsman will be introduced for the private rented sector. All private landlords, regardless of whether they use a letting agent, will be legally required to join this scheme.
• What this means for you:
The ombudsman will provide a fair, impartial, and binding resolution for disputes between landlords and tenants, offering an alternative to the court system.
• Actionable insight:
Understand the ombudsman's role and ensure you are registered once the scheme is operational. This could help resolve disputes more efficiently.
8. Decent Homes Standard Extended to the Private Rented Sector
The Decent Homes Standard, currently applicable to social housing, will be extended to the private rented sector. This will require properties to be safe, warm, and in a good state of repair.
• What this means for you:
You will need to ensure your properties meet specific quality requirements, covering aspects like structural stability, freedom from serious hazards, and adequate heating and insulation.
• Actionable insight:
Proactively assess your properties against the Decent Homes Standard now to identify and address any potential issues. Regular maintenance will become even more critical.
9. Pet Ownership Made Easier for Tenants
The new laws will make it easier for tenants to have pets. Landlords will not be able to unreasonably refuse a tenant's request to keep a pet.
• What this means for you:
Landlords will only be able to refuse a pet request with a reasonable justification. You will also be able to require tenants to take out pet insurance to cover any potential damage to the property.
• Actionable insight:
Review your pet policies. Consider what constitutes a "reasonable" refusal and explore options for pet insurance requirements.
10. A Digital Property Portal
A new Property Portal will be introduced, requiring landlords to register their properties. This will provide a single front door for landlords to demonstrate compliance with their legal obligations.
• What this means for you:
You will need to register your properties on the portal and keep the information updated. This portal is also intended to help local authorities target enforcement action against rogue landlords.
• Actionable insight: Stay informed about the launch and requirements of the Property Portal to ensure timely registration and compliance.
Next Steps for Landlords
The Renters Reform laws represent a significant shift in the landlord-tenant landscape. While the precise implementation dates for all measures are yet to be confirmed, landlords should start preparing now. Understanding these changes, reviewing your current practices, and seeking expert advice will be crucial for navigating the new regulations successfully.
We have created a useful download for you ‘The Key Facts’ document click below to start the download:
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