The Renters (Reform) Bill has been making its way through Parliament this year:
- On 17th May it was introduced in the House of Commons (first reading)
- On 23rd October it had its second reading, which was the first chance for MPs to debate the contents
- On 7th November it was reintroduced for the 2023-24 parliamentary session
- It is now at the ‘Committee’ stage, where a select committee of MPs are carrying out an in-depth analysis and debate of all the clauses and proposals for change
Once the committee has reported back, MPs can debate all proposed amendments.
What’s the latest on the scrapping of section 21?
Before the second reading took place, Levelling Up secretary Michael Gove wrote to MPs to inform them that the Government won’t move ahead with abolishing section 21 until certain improvements are in place, including:
- Overhauling the court system to speed up the process - in particular, making sure cases involving rent arrears and anti-social behaviour are prioritised
- Improving the recruitment and retention of bailiffs
- Strengthening dispute resolution and mediation services
- Giving tenants better legal advice
What other changes were proposed following the second reading?
On 15th November, the Government published details of around 100 amendments to the Bill. Although most were clarifications and minor technical changes, there were three key changes for landlords to know about:
- For student landlords: the Government has added a new clause giving House in Multiple Occupation (HMO) landlords the right to remove students if they refuse to leave after their academic year has finished - with certain conditions:
- Students must be full-time and have been living in an HMO during the final semester of the academic year
- The landlord must be intending to let the property to students again
- A section 8 notice citing the new ground (4A) must expire between 1 June and 30 September in any year
The matter of fixed-term Assured Shorthold Tenancies (ASTs) being scrapped and tenants being able to give just two months’ notice at any point has not yet been addressed. It’s worth noting that the Purpose Built Student Accommodation sector (PBSA) does not fall under the scope of the Renters (Reform) Bill, so PBSA landlords will still be able to offer fixed-term tenancies. The Government had already said Private Rented Sector (PRS) landlords would not be offered the same deal, but this may be reviewed in the Committee stage.
- The maximum amount tenants can claim back through rent repayment orders (RROs) has been doubled, from 12 to 24 months’ rent.
- It will be an offence for an agent or landlord to issue ‘blanket bans’ on tenants with children or those in receipt of benefits. However, with the huge imbalance of supply and demand in many areas and an average of 20-30 applicants per property, this change might not be much help in practice, as it’s hard for people to prove why they weren’t chosen.
For more on the contents of the Bill and how the proposed changes are likely to affect you as a landlord, read our blog, ‘The Renters Reform Bill | Top 20 Q&A for landlords’.
Get in touch with your local branch experts today if you have any questions or queries.
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