England's landlord and tenant rules have been earmarked for reform by the government for a number of years. They presented specific recommendations for accomplishing this recently in the form of the Renters (Reform) Bill.
Here is information on the new Renters (Reform) Bill that landlords, brokers, and tenants should be aware of:
Here are the main ideas behind the Renters (Reform) Bill
The main objectives of the Bill, according to the government, are to guarantee that private tenants have a safe, high-quality place to live and to give landlords more assurance that they can reclaim ownership of their properties when they have good cause to do so.
The following are the primary amendments to the statute that the Bill proposes:
There won't be any more ASTs, or assured shorthold tenancies. Future tenancies will all be on a periodic basis. Existing tenancies will also become periodic too.
The rental property's possession and eviction policies will alter. No longer will there be section 21 evictions, also known as "no fault" evictions.
Landlords should be able to dismiss tenants more quickly and easily when they violate the terms of the tenancy, such as when they engage in antisocial behaviour or have severe rent arrears. Additionally, landlords will have the right to evict tenants if they want to sell their property, relocate their family in, or live there themselves.
With evictions being approved by courts where landlords can demonstrate the conditions have been met, the reasons for eviction will be more clearly defined. There will be a simplification of the judicial eviction process.
So-called revenge evictions will not be allowed. This means that Landlords won't be able evict tenants if they complain about the condition of the property or the rent and rent increases.
Only one rent increase per year, up to market rates, will be permitted. When raising rent, landlords must notify tenants two months in advance.
Landlords must enrol in a redress scheme that has been approved. Any grievances may be brought up with the redress scheme by tenants. The scheme will have the authority to require landlords to make things right or pay damages. An Ombudsman will supervise the procedure.
Landlords will need to register their properties with a new Property Portal and Private Rented Sector Database. Before this has been completed, landlords (and agents) will not be able to list a property for rent.
A new provision will allow tenants to have dogs if they so choose. Landlords won't be able to unreasonably deny a tenant's request for permission to keep a pet. However, tenants will need to obtain insurance or pay for it to cover any damage caused by pets.
With the assistance of a new lead enforcement authority, local authorities will enforce many of these new laws. They will have the authority to impose penalties on landlords who violate them.
The Bill also prohibits discrimination against benefit claimants and families when marketing properties for rent and states that the government plans to extend the Decent Homes Standard to the private rental sector. Additionally, potential new authority for local authorities is mentioned. However, this Bill does not actually contain these measures.
What would the passage of the Renters Reform entail for the rental market?
It's crucial to keep in mind that the Renters (Reform) Bill is not yet a law. It needs to go through Parliament as normal. Before it might become law, it may be a year or perhaps 18 months away. Even then, there may be changes along the route, and not all of the Bill's provisions may be implemented, if they are implemented at all.
If and when the Renters (Reform) Bill does pass into law, the lettings industry will undoubtedly undergo a fundamental shift. Both landlords and tenants will gain in certain ways. But ultimately, it's going to make renting out property more difficult and expensive than it already is.
Potentially encouraging more landlords to exit the rental market as the bill passes through Parliament and discouraging some new investors from entering the market. This might make it harder to find rental properties and raise rents even before the new proposed rule takes effect.