The Renters (Reform) Bill aims to improve the rented housing market for both the 11 million private renters and 2.3 million landlords in England.
The Bill was published in May 2023 and has been in the news recently following its second reading in the House of Commons earlier this month (October 2023).
When it comes into force – which is unlikely to be before October 2024 for most aspects of the bill – it will mean some important changes for England’s rental sector. We’ve summarised the main changes below.
The end of Section 21 ‘no-fault’ evictions
The bill proposed abolishing Section 21 eviction notices, which allow landlords to evict tenants without providing a specific reason, giving tenants greater housing security.
Instead, a new ‘ground-based’ evicting process would be introduced, where landlords need a valid reason – such as repeated non-payment of rent or antisocial behaviour – to evict tenants.
However, the government has now confirmed that Section 21 evictions will not be abolished until "sufficient progress" has been made to the court system used by some landlords to reclaim possession of their homes, including moving more of the process online.
Limits to rent increases
The bill aims to end the use of rent review clauses that prevent tenants from being locked into automatic rent increases that are vague or may not reflect market rates.
Instead, landlords will be able to raise rents once each year in line with market rates. They will need to give tenants two months’ notice of any increase, with tenants able to challenge increases they feel are disproportionate through a tribunal.
A Private Renters’ Ombudsman
The bill will require all private landlords renting out property in England to join an Ombudsman scheme to ensure all tenants have free access to redress in the event of any legitimate complaints that their landlord has failed to deal with.
The Ombudsman will have powers to put things right, including compelling landlords to issue an apology, provide information, take remedial action, and/or pay compensation of up to £25,000.
A property portal – with compulsory registration for landlords
The bill will require all landlords to register themselves and their properties on a property portal that aims to raise standards in the private rented sector by helping landlords understand their obligations and demonstrate their compliance with relevant regulations.
For tenants, the portal will increase transparency and the information available before they decide to rent a property and for the duration of their tenancy, raising awareness of when they can escalate issues with their property to their local council or the Ombudsman.
It will also make it easier for local councils to identify and take enforcement against landlords for renting poor quality and non-compliant properties.
Renting with pets
In good news for renters who want to share their home with an animal companion, the bill will ensure landlords do not unreasonably withhold consent when a tenant requests to have a pet in their home, with tenants able to challenge refusals they feel are unfair.
To reassure landlords who may be concerned about potential damage caused by pets, the bill will allow landlords to require insurance covering pet damage.
All the measures in the Renters (Reform) Bill have been designed with the aim of enhancing the rights of tenants and creating a more balanced relationship between landlords and tenants.
You can find up-to-date information on the rights and responsibilities of landlords and tenants here.
