Government Proposes Sweeping Rental Reforms in Renters’ Rights Bill

The Renters’ Rights Bill sets out a series of reforms aimed at balancing the rental market in favour of tenants while preserving landlords’ ability to manage their properties effectively. Here’s a detailed breakdown of the government’s key proposals:

1. Abolition of Section 21 "No-Fault" Evictions

Under the current system, landlords can evict tenants without providing a reason at the end of a fixed-term tenancy, using Section 21 notices. This process has been criticised for creating insecurity for tenants, who can be forced to leave their homes without cause, making it harder for families to settle into communities or for tenants to challenge poor conditions.

The proposed reforms would abolish Section 21 evictions, meaning that landlords will no longer be able to evict tenants without a valid reason. This move is intended to offer renters long-term stability in their homes, allowing them to raise complaints about housing standards without the risk of arbitrary eviction.

2. New Grounds for Eviction

While the abolition of Section 21 strengthens tenant security, landlords will still be able to reclaim their properties under specific circumstances. The government proposes new, clearer grounds for eviction, ensuring that landlords can regain possession if they need the property back for reasons such as:

• Selling the property
• Moving into the property themselves or a family member
• Persistent rent arrears or antisocial behaviour by the tenant

These updated grounds aim to ensure that landlords retain flexibility while preventing unjustified evictions.

3. Reforms to Rent Increases

Another key aspect of the bill is stricter regulation of rent increases. Landlords will be required to provide a longer notice period before raising rents, giving tenants more time to adapt to potential changes.

Currently, tenants may face sudden and substantial rent hikes, making housing unaffordable with little time to find alternatives. The new system seeks to introduce more predictability and fairness, while still allowing landlords to adjust rents in line with market conditions.

4. Simplifying Tenancies: A Single System

The government also proposes a new tenancy framework to simplify the often-confusing system of fixed-term and periodic tenancies. The bill suggests creating a single type of periodic tenancy, eliminating the distinction between different types of agreements.

This means that once tenants move into a rental property, their agreement will automatically continue unless one party takes formal steps to end it. This aims to give tenants more certainty without needing to renegotiate terms every time a fixed-term contract ends, as is common now.

5. Improved Dispute Resolution and Housing Standards

Tenants will have improved access to mechanisms for resolving disputes, particularly regarding substandard housing. The government intends to introduce enhanced housing standards and give tenants more power to ensure landlords make necessary repairs and address health and safety concerns.

Tenants often face difficulties in getting landlords to address issues such as damp, disrepair, or unsafe conditions. The new proposals will strengthen their ability to take action and hold landlords accountable for maintaining liveable homes.

6. Tackling Antisocial Behaviour

While the bill focuses heavily on tenant protections, it also aims to streamline the eviction process for landlords dealing with tenants engaged in antisocial behaviour. The government plans to introduce faster procedures to allow landlords to remove tenants who cause significant disturbances to neighbours or the community, or who are consistently in rent arrears.

By simplifying the process, the government hopes to reduce the burden on landlords who need to take action in these situations, while still protecting tenants from unjust evictions.

7. End of Fixed-Term Tenancies

The bill proposes the end of fixed-term tenancies, introducing rolling, periodic tenancies instead. Under this model, tenancies will continue indefinitely until either the tenant or landlord decides to end the contract. This prevents tenants from having to frequently renew contracts and provides more stability for families, students, and long-term renters.

8. Pet-Friendly Tenancies

The new bill also includes proposals to make it easier for tenants to keep pets in rental properties. Landlords will no longer be able to automatically refuse pets, unless they provide a valid reason. This reform recognises the role pets play in many households and aims to offer more flexibility to renters while ensuring that landlords’ concerns are addressed.

The Impact of These Reforms

The Renters' Rights Bill represents a significant shift in the UK rental market. These changes aim to tackle common complaints about the imbalance of power between landlords and tenants, providing renters with more security, affordability, and quality in their homes. The reforms are part of the government’s wider efforts to address housing issues, increase fairness, and create a more sustainable and stable rental sector.

Timeline for Introduction

The Bill is expected to follow the usual legislative process in Parliament. After its introduction as a draft, it will go through multiple stages, including readings, debates, and committee reviews in both the House of Commons and the House of Lords. Amendments may be proposed and debated before the final version is approved. While the exact timeline is uncertain, the government aims to pass the legislation within the coming year. Once passed, the reforms will be gradually implemented, transforming the UK rental market.

About Spencer West LLP : Donald Millar and I are experienced property lawyers specializing in advising clients on buying, selling, developing, leasing, and financing UK residential and commercial property. Whether you're a first-time buyer, a seasoned investor, a funder, or a developer, we can provide expert legal guidance and protect your interests.