So how did it start?

• We heard the first of it in the Queen's Speech on 2019:

 “ New measures will be brought forward to protect tenants”, specifically a Renters Reform Bill;

• 26 March 2020 lockdown & moratorium on eviction: Labour, Shelter & others pressing for abolition of s21. 
• Minister Christopher Pincher MP said in September 2020: 

“We will do that at the appropriate time when there is a sensible and stable economic and social terrain on which to do it”

• Queen’s Speech May 2021: government response to consultation would be published autumn 2021
• February 2022 Department for Levelling Up Housing Committee publishes Levelling Up White Paper: 

“We will publish a landmark White Paper in the spring to consult on introducing a legally binding Decent Homes Standard in the Private Rented Sector for the first time ever, explore a National Landlord Register and bring forward other measures to reset the relationship between landlords and tenants, including through ending section 21 “no fault evictions”.

• 16 June 2022 Department for Levelling Up Housing Committee  publishes:

White Paper: A Fairer Private Rented Sector; a new deal for renting: government response; Annex A contains proposed new grounds for possession; and government response to consultation on new housing court.

Six Principal Areas

- Abolish s.21 & require all assured tenancies to be periodic: clauses 1-2 & Sched 4 amending Housing Act 1988;

- New and amended grounds for possession: clauses 3-4, Schedules 1 and 2 amending HA 1988;

- Ombudsman which private landlords must join: clauses 24-31

- New Property Portal containing database of residential landlords & privately rented properties: clauses 32-51

- Mechanism to prevent rent increases more than once a year and appeal to FTT: clauses 5-6 amending HA 1988

- Right to request permission to keep a pet, not to be unreasonably withheld: clauses 7-8;

- Consequential amendments to homelessness legislation: clause 18 amending Housing Act 1996

Renters (Reform) Bill publications - Parliamentary Bills - UK Parliament - Link to the bill as introduced.

Abolition of ‘no-fault’ evictions 

Clause 2 of the Renters (Reform) Bill is headed “ Abolition of assured shorthold tenancies” and says:

In the 1988 Act –

1. Omit section 6A (demotion to assured shorthold tenancy because of anti-social behaviour);
2. Omit chapter 2 of Part 1 (assured shorthold tenancies).

Chapter 2 of Part 1 of the Housing Act 1988 runs from s19A to s23 inclusively

*Abolition of assured shorthold tenancies means the s21 procedure will no longer exist*

Clause 1 of the Bill inserts a new section 4A into the Housing Act 1988, New subsections 4A(1) and (2) say:

1. Terms of an assured tenancy are of no effect so far as they provide a tenancy for a fixed term tenancy.
2. Where terms of an assured tenancy are of no longer effective  by virtue of subsection (1), the tenancy has effect as a periodic tenancy under which the periods of the tenancy are the same as those for which rent is payable.
    

**Commencement**

Chapter 1 of Part 1 of the Bill applies in relation to every assured tenancy that is entered into on or after the commencement date, and

On and after the extended application date, in relation to every assured tenancy that-

1. Was entered into before the commencement date, and
2. Continues in effect on the extended application date, (and accordingly, on the extended application date any such tenancy becomes an assured tenancy to which section 4A of the 1988 Act, as inserted by section 1 of this Act, applies).

**They’ll be at least 6 months between the royal assent and the commencement date the date at which all newly created tenancies will be new style assured tenancies.

**They’ll be 12 months from the royal assent for pre-existing tenancies to convert to new style tenancies.

Ombudsman 

- Secretary of State power to set up scheme & require residential landlords to join: clause 24:

- Independent investigation & determination of complaints by prospective, current & former tenants of residential landlords or their representatives: clause 24(2);

- Regulations will require residential landlords to be members of scheme from when they market properties: clause 24(4);

- Detail of appointment of individual & complaints process at clause 25, powers will include requiring apologies, explanations, compensation and/or order to cease taking action.

Penalties 

- Landlords can be expelled for non-compliance clause 25(2);

- Financial penalty of up to £5,000 imposed by local authority if landlord breached requirement to be a member; clause 26;

- Criminal offence if breach committed subsequent to receiving financial penalty, with further financial penalty in lieu of prosecution of up to £30,000 (clause 27).

Private Rented Sector Database

Clause 33: Secretary of state can be a database operator or arrange for a database operator;

Clause 32: data must contain entries regarding: existing or prospective residential landlords; dwellings which are or intended to be let under residential tenancy. Residential landlords who have received banning order, conviction or financial penalty in relation to relevant banning order offence or as specified in Regulations (to be inserted by local authorities clause 40);

Clause 34: regulations may include 28 day grace period for compliance requirements;

Clause 35: regulations will require that active entries are kept up to date;

Clause 39: “A person must not market a dwelling for the purpose of creating a residential tenancy unless – there is an active landlord entry in the database in respect of the person who will be the residential landlord if the tenancy is granted, and there is an active dwelling entry in the database in respect of the dwelling,”;

Clause 42: tenant can report non-registration;

Clause 43: Certain information, including banning orders etc, publicly accessible;

The rest of the information is described as is “ necessary for tenant or prospective tenant to make informed decision about renting”;

Expected to be the landlord name, other owners or managers, unspent offences, financial penalty or regulatory notices & details relating to dwelling.

Enforcement 

-Financial penalty imposed by local authority of £5,000 for the first breach or £30,000 if repeated (clause 47);

-Criminal offence knowingly or recklessly provide false or misleading information (clause 48);

-Criminal offence if the breach which led to financial penalty is repeated with five years: penalty of up to £30,000 in lieu of prosecution.

Rent 

Clause 5 amends s.13 HA 1988 & abolishing rent review clauses:

- Rent can only be increased (annual) during a tenancy by service of s.13 notice;

- Two month notice period (currently 1 month);

- Landlord and tenant can agree lower amount than amount proposed in notice without service of new notice;

- Notices can only be served at intervals of no less than 52 weeks.

summary:

It prevents the landlord from charging the tenant exorbitantly high rent and above the market value.

Tenant Challenges on Rent (Clause 6 amend s14 HA 1988)

-Tenant can apply to First-Tier Tribunal to challenge rent increase;

-First-Tier Tribunal will assess open market rent;

- If that is higher than proposed in notice, landlord &tenant can agree in writing to lower rent.

Pet

- Clause 7&8: right to request permission to keep a pet;

- Amends HA 1988 by adding new sections 16A, 16B and 16C and amends s.1(4) Tenant Fees Act 2019;

Implied term of every assured tenancy that tenant may keep pet with landlord’s consent unless landlord reasonably refuses;

- Does not apply to tenancies of social housing;

- Written request, with description of pet;

- Landlord can refuse if it would breach agreement with superior landlord;

- Landlord can require tenant to purchase pet insurance to cover damage (or to pay for landlord to do so);

- Court can order specific performance of obligation not to unreasonably refuse pet.

Impact Assessment of the Bill - Parliament Notes

Point 44:

The government’s aim is to tackle these problems so that

 - All tenants have access to a good quality, safe and secure home – specifically the government has committed to a Levelling Up mission to halve the number of non decent rented homes by 2030, with the biggest improvements in the lowest performing areas; 

 - All tenants are able to treat their house as a home and be empowered to challenge poor practice; 

-All landlords have information on how to comply with their responsibilities and are able to repossess their properties when necessary;

 - Both landlords and tenants are supported by a system that enables effective resolution of issues; and

 - Local councils have strong and effective enforcement tools to crack down on poor practice.

Point 54: (summary):

Primary legislation will be required to deliver legislative intervention (to the Private rented sector), due to the fact that it will require fundamental provisions to tenancy law. this will be achieved via the Renters Reform Bill. there will also be significant secondary legislation, including the Property Portal and Ombudsman.

Point 57:

For tenancy reform, we have committed to implement the new system in two stages, ensuring all stakeholders have sufficient notice to make the necessary changes. This means providing at least six months’ notice of our first implementation date, after which all new tenancies will be periodic and governed by the new rules. To avoid a two-tier rental sector, and to make sure landlords and tenants are clear on their rights, all existing tenancies will move to the new system on a second implementation date that is a least twelve months after the first. Existing tenancies will automatically transfer to the new system on this date, landlords and tenants will not need to sign a new agreement. 

 Renters (Reform) Bill Impact Assessment– Parliamentary Bills

 2023072023RentersReformBillImpactAssessment.pdf (parliament.uk)