There has been a lot of news recently about the Renters (Reform) Bill and how this will impact landlords. We have summarised some key points that will be of interest to landlords and property investors.

What is the Renters (Reform) Bill?

The Renters (Reform) Bill was introduced to Parliament on 17 May 2023. It aims to abolish ‘no fault’ evictions in England. The Government’s plans for reform were set out in the white paper ‘A fairer private rented sector in June 2022, which followed several earlier consultation exercises. The debate on the second reading was scheduled for 23 October 2023, so we wanted to update you on progress.

What is the latest position with the Renters (Reform) Bill?

The Renters (Reform) Bill was discussed at the House of Commons on 232 October 2023. The following recommendations were made. The Government stated that they would align the removal of Section 21 with court improvements to protect landlords' right to set rents in line with the market.

Propertymark commented, ‘We are heartened that the UK Government recognises a strong, well-functioning private rented sector is necessary to provide quality homes for all renters, and that actively supporting the many good landlords and agents who provide these homes is a vital part of achieving this.’

What does this mean for landlords?

The abolition of Section 21 and new possession grounds will be aligned with court improvements, which include:

• Once Section 21 is abolished, landlords can only terminate a tenancy using the new Section 8 Grounds for Possession. Tenants can terminate their tenancy by giving two months’ notice.
• The court process will be digitised to make it easier and simpler for landlords to use.
• The Bill will expand the existing discretionary ground to evict tenants who exhibit anti-social behaviour, including behaviours “capable of causing” nuisance or annoyance. 
• The student market is cyclical, and landlords must be able to guarantee possession each year for a new set of tenants. The UK Government will introduce a new ground for possession to facilitate this.

What is the timeline for change?

Following the second reading this month, the Bill is unlikely to receive Royal Assent until the spring of 2024 at the earliest, and maybe not until the autumn of 2024. Consequently, it won’t come into force until six months later, possibly in October 2024 or April 2025. We will keep you up to date with any further changes as we hear about these.

We work with landlords and property investors in the East Midlands and London, if you would like any advice, please do get in touch. You can call us on 01623 490 120 or find out more by clicking here – Advice for landlords.