Renters Reform Bill

The Labour government's proposed Renters' Reform Bill and its potential impact on the rental market in England could come into force sooner than expected according to media reports.

Hewetts Solicitors have a strong landlord law department headed up by Oliver Kew. Here is his summary of the key points of the reforms.

Main Features of the Bill

The Renters' Rights Bill includes several significant reforms:

• Ban on no-fault evictions: Section 21 evictions, which allow landlords to evict tenants without citing a reason, will be prohibited
• Rent increase limitations: Rent increases will be restricted to once annually and only to the 'market rate'
• Improved safety standards. Landlords will face deadlines to fix hazardous conditions
• Fines for substandard housing: Landlords could face fines up to £7,000 if properties fail to meet a 'decent homes standard'
• Anti-discrimination measures: Blanket bans on renting to families with children or benefit recipients will be eliminated

Landlords' Concerns

Landlords have of course expressed concerns about the bill:

• They warn that rents may increase in high-demand areas
• There are fears that parts of the private rental market could become an 'Airbnb Lite' model
• Landlords suggest they might counter bidding war restrictions by advertising higher initial rents

Government and Advocacy Group Responses

• Deputy Prime Minister Angela Rayner emphasized the need to reform renting and rebalance the tenant-landlord relationship
• The Renters' Reform Coalition welcomed the bill as stronger than previous attempts
• The government dismissed concerns about an 'Airbnb Lite' scenario as a misrepresentation of the reforms

Timeline

If enacted in spring 2025, the no-fault eviction ban could potentially be operational by summer.

The ongoing debate between tenant protections and landlord rights, with the government aiming to create a fairer balance in the rental market, has many implications for landlords.

For a more detailed breakdown of the Bill please see the following news article: https://www.hewetts.co.uk/news/Abolition-of-s21-Notice-$326.htm

If you want to ensure you are on the right side of the law, or you want to take any action before these laws are enacted, please get in touch with Oliver Kew at Hewetts at o.kew@hewetts.co.uk

Published on 11/09/2024