Social Housing Speed Read – Renters’ Rights Bill

We posted a speed read on this topic topic back in May, linked here, which discussed the (slightly different) Renters’ Reform Bill (the Bill) in its form as introduced by the Conservative Government.

This speed read will focus on what has changed in the Bill since being revamped by the Labour Government. There will also be some further discussion on the implications of removing s.21 no-fault evictions.

What has changed?

• It will make assured shorthold tenancies a thing of the past, replacing them (including existing ones) with periodic assured tenancies. Tenants will only need to serve 2 months’ notice to end the tenancy.
• It will require landlords to publish an “asking rent” and it will be illegal for them to accept above it. This is to prevent so called ‘rental bidding’, which is a common practice in London and has been seen increasingly in the north.
• The possession grounds of landlord wanting to sell / have family live at the property will not be available during the first 12 months of the tenancy. It will then require 4 months’ notice to be given to use these grounds. If used, the property cannot then be re-let for 12 months. These periods are longer than those in the Conservative’s Bill and create more hurdles for landlords.
• It will extend the notice period to 4 weeks for grounds 8, 10 and 11 and to 2 months for ground 7.
• It will extend “Awaab’s Law” to the private sector, creating a ‘Decent Homes Standard’ where landlords could be fined up to £7,000 for failing to address hazardous living conditions, such as damp and mould.
• It will allow tenants to request permission to accommodate a pet, which cannot be unreasonably refused.
• It will prevent landlord’s from banning tenants on benefits or those with children.
• It will introduce civil fines of up to £40,000 for illegal evictions.

The End of s.21 No-Fault Evictions

The publishing of the Bill has confirmed that s.21 no-fault evictions will come to an end. This aims to balance the playing field between landlord and tenant, providing tenant’s with a greater level of protection and security

There are also concerns around the court’s ability to manage the increased caseload that is expected of more complex possession claims. The net result should however be less homelessness, as the private sector becomes a more settles and secure environment for tenants.

Key Takeaways

• This Bill is likely to become legislation by the end of the year, with the Minister for Housing and Planning aiming for the law to be in force by next summer, at the latest, so be prepared for these changes to come into effect next year.
• Guidance is expected on how the removal of s.21 will ensure landlords maintain a robust method of repossessing their property. Landlords should remember that the tenancy can still be ended when tenants commit serious breaches, such as damaging the property, or serious rent arrears.
• There will be no transition period where existing fixed term tenancies can continue – there will be a date on which all tenancies must become periodic, so be aware of this.

If you would like more information, or have any questions regarding the Renters’ Reform Bill get in touch with John Murray in our Social Housing Group