After a long postponement, the Renters Reform Bill is making its way back to the House of Commons this week.
The bill is scheduled for its second reading on Wednesday and will include the following key changes:
- An examination of court capabilities before removing Section 21 for current leases, to guarantee they can manage the increased demands.
- Tenants must occupy a residence for a minimum of four months before they can issue a two-month notice to vacate, applicable for fixed-term leases.
- Special provisions for student accommodations to ensure landlords can maintain their yearly turnover of student occupants.
Beverley Kennard, who leads lettings operations at Knight Frank, commented: “The proposed updates to the Renters (Reform) Bill represent a positive development for both landlords and tenants. By abolishing Section 21 evictions, the process becomes more transparent for those who rent, obligating landlords to provide valid reasons for evicting tenants, such as overdue rent or plans to reclaim occupancy of the property.
“We are advocating for a swift government action on the Bill. Enacting these reforms and finding the right equilibrium between the interests of landlords and tenants will inject more stability and transparency into our critical rental sector.”
The blueprint for these regulations was originally laid out in 2019 by then-Prime Minister Theresa May, and the bill was initially introduced in May of the previous year.
Renters Reform Bill: Full Breakdown
Authorities are calling on Parliament to endorse the Renters Reform Bill upon its return to the House of Commons this week.
The Bill, which is set to reach the report stage on April 24, 2024, is coming with a handful of new amendments.
The government informed Tory MPs that intended amendments for the Bill would include the following:
- Taking on a recommendation from the bipartisan housing committee that tenants should stay in a rental for at least four months before they can provide a two-month notice to vacate upon the end of a fixed-term lease. This would mean landlords could count on a minimum of six months’ worth of rent at the beginning of a lease. However, there would be provisions to allow tenants to leave sooner if the property is substandard or in cases of domestic abuse.
- Assessing the capacity of the courts ahead of abolishing section 21 for current leases, confirming that the judicial system can manage the workload increase. The Committee emphasized that landlords need to trust the system to reclaim properties under section 8, particularly for issues like rent non-payment and antisocial behavior, with court capacity being the primary concern.
- The Law Society cautioned that without enhancements to legal aid for housing and court resources, the proposed bill might not meet its objectives. This could further extend delays and hinder both landlords and tenants from upholding their legal rights.
- Guaranteeing that all forms of student accommodation, even one and two-bedroom units, are included within the proposed grounds for possession. This is to maintain the yearly turnover of the student rental market, an approach backed by the Labour-controlled Local Government Association for providing security to student landlords with non-HMO properties that they can offer places each school year.
In response to the confirmed return of the Renters (Reform) Bill to Commons on April 24, Ben Beadle, the Chief Executive of the National Residential Landlords Association, commented:
“We have remained committed to ensuring that the new system replacing section 21 evictions is functional and just for both tenants and respectable landlords.
“It’s critical to call out illegal and dishonest landlords. Nonetheless, we must ensure that most landlords who are doing their job properly can trust in the Bill to supply the necessary rented homes.
“The government’s suggested amendments achieve this equilibrium.
“Now it’s key to set clear expectations for the market to smoothly transition to the new system. Consequently, we’re asking MPs to fast-track the Bill through Parliament with the government’s proposed changes, while simultaneously enhancing the justice system for the benefit of renters and landlords.”
