Lawbite: Renters (Reform) Bill introduced to Parliament – major reform to the English residential regime

The long-awaited Renters (Reform) Bill (the Bill) has been introduced to Parliament and had its first reading in the House of Commons yesterday, on 17 May 2023. The date of the second reading is yet to be announced. The Bill comes almost a year after the Government published its White Paper setting out how it intended to fulfil its promise for A Fairer Private Rented Sector.

The Bill impacts residential tenants and landlords of properties in England and, once in force, will represent a major reform to the residential tenancy regime in England.?

Among the impacts to the market and sector generally is the potential problem caused to development projects, where vacant possession needs to be sought from residential tenants. With the greater security afforded to tenants by this legislative change, it remains to be seen whether that might impact the speed and practicability of needed redevelopment and regeneration, itself delivering housing. Having said that, demolition / substantial development which cannot be done with the tenant in situ is a ground on which the landlord can obtain possession, but this issue potentially will introduce added complications around proving redevelopment, with presumably no possibility of an accelerated possession route to follow.

The stated intention of the Bill is to improve quality and standards of accommodation, as well as to strengthen tenants’ rights.

A key feature of the Bill is the abolition of Section 21 ‘no fault’ evictions, which have allowed landlords to end tenancies without grounds.

Although the proposed legislation is predominantly tenant-friendly, the legislation as drafted also seeks to improve landlords’ ability to recover properties in certain situations, for example where there is anti-social behaviour or persistent rent arrears.

Other key features of the Bill as currently drafted are:

• a statutory procedure for rent increases, seeking to prevent excess, with an emphasis on tenants’ access to the relevant Tribunal to challenge increases where these are over market rent
• private landlords will need to join a central ‘landlord redress scheme’
• a new private rented sector database of landlords and dwellings
• a right to request a pet is introduced by the Bill
• offences and penalties are listed in the Bill

Key points:

• ?at the close of 2022, the Renting Homes (Wales) Act 2016 came into force, marking a significant change to residential tenancy law in Wales. A number of the reforms proposed to be implemented by way of this England-focused Bill mirror the new regime in Wales?- for example in relation to recovery of possession for antisocial behaviour
• on the same day as the Bill was introduced to Parliament, the Government also issued a Guide to the Renters (Reform) Bill

For more information, please contact David Feist or Alison Jones below:

David Feist - [email protected]

Alison Jones - [email protected]