Navigating the Renters’ Reform Bill: Key changes landlords need to know

The private rental sector in the UK has undergone significant changes in recent years, with more individuals opting to rent rather than buy homes. While this trend has resulted in greater flexibility for tenants, it has also raised concerns about tenant rights and protections. The Renters’ Reform Bill, proposed by the Labour government, aims to address these issues and reform various aspects of the private rented sector.

The main provisions in this reintroduced bill aim to balance tenant protection with landlords’ needs.

Key provisions of the Renters’ Reform Bill

Abolition of no-fault evictions

The Renters’ Reform Bill includes the abolition of Section 21, ‘no-fault’ evictions. This implies that landlords will be required to provide a valid reason for tenant eviction, such as rent arrears or breach of the tenancy agreement, rather than simply serving a notice to evict the property. This change will affect both new and existing tenancies.

Implementation of Awaab’s law

Originally applicable to social housing, Awaab’s Law will extend to the private rented sector once passed. Under this law, landlords will be required to address serious health concerns, such as dampness and mould, within specific timeframes. Expansion of this law aims to improve living conditions across rental properties.

Decent Homes Standard

The Decent Homes Standard currently applies to social housing but will now be extended to the private rented sector. Under this provision, landlords must ensure their rental properties meet minimum quality standards, covering repairs, heating, lighting and sanitation.

Abolition of in-tenancy rent increases

Landlords will be required to limit the frequency and amount of rent increases and will no longer be allowed to include mid-year rent increases in leases. This provision aims to safeguard tenants from unexpected rent hikes during their tenancy and offer protection from excessive rent hikes.

Ban on rental bidding wars

The Revised Renters’ Reform Bill will ban rental bidding wars, prohibiting landlords from asking or accepting offers above the listed rental price and soliciting bids from multiple potential tenants. This measure will prevent rental bidding wars, which are one of the factors driving up rents in the UK’s high-demand areas.

Eradicate blanket bans

Upon acceptance, this reform bill will remove blanket bans on letting or renting properties to tenants with children or pets or those receiving benefits. The aim of these blanket bans is to ensure fair access for all to housing, promote inclusivity and prevent discrimination in the rental market.

Implications for landlords in the UK

If enforced, the Revised Renters’ Rights Bill will help strike a balance between tenants’ and landlords’ rights. Some landlords may need to adjust their letting practices to comply with the newly introduced regulations. They may also need to conduct regular inspections, ensure compliance with the Decent Homes Standard and provide valid reasons for eviction.

Ongoing developments

Further amendments and negotiations are likely as the reform bill progresses through the legislative process. However, it’s ideal for landlords to stay informed about the latest developments and ensure compliance.

As landlords navigate these new regulations, it’s crucial to onboard experts. Benham and Reeves provides comprehensive services, from lettings to property management, helping landlords comply with evolving regulations. Get in touch for a one-on-one consultation or any queries related to the Renters’ Rights Bill.