An update on the latest developments in the Renters Reform Bill

The much-anticipated Renters Reform Bill is undergoing a shocking and unexpected dilution. The UK government has decided to postpone the implementation of a ban on no-fault evictions indefinitely. Other legal modifications are expected to be retained in the Bill. However, the promised overhaul has been in the works for an extended period, leaving tenants and tenants-increasingly-love-corporate-landlords'>landlords on the edge and in anticipation.

The prolonged process of reforming rental regulations has created a sense of uncertainty for stakeholders. The recent shift in environmental policies may contribute to the complexity of tenants-increasingly-love-corporate-landlords'>landlords' responsibilities and expectations. As these developments unravel, those in the rental market watch the situation closely. They are looking for more clarity on the future direction of rental reforms as there are broader implications, especially in light of the recent policy changes.

Has the government no-fault eviction ban or section 21 notices to evict tenants been canceled?

The central proposal of the Bill - to prohibit tenants-increasingly-love-corporate-landlords'>landlords from evicting tenants without a valid reason, was a key commitment outlined in the 2019 Conservative Party manifesto. The government's plan included eliminating Section 21 of the Housing Act, which permits tenants-increasingly-love-corporate-landlords'>landlords to terminate leases without providing a specific cause. Additionally, they proposed replacing fixed-term leases with indefinite tenancies.

However, in a recent announcement, Housing Secretary Michael Gove disclosed that the government would be postponing the implementation of the no-fault eviction ban. No clear timeline for its future enactment was offered. This decision has generated varying opinions. As expected, many tenants-increasingly-love-corporate-landlords'>landlords expressed approval, while rent advocates and opposition parties criticised the move.

Why has the government not banned no-fault evictions or section 21 notices to evict tenants?

The working of the court system must be improved. The government attributes the postponement of the eviction ban to concerns about the current inadequacy of the court system. They express worry that tenants-increasingly-love-corporate-landlords'>landlords might exploit the courts to repossess their properties. The government states that the abolition of Section 21 will not proceed until substantial progress is made in improving the justice system. They are looking at a modern, digital service aligned with proposed tenancy law reforms.

Will no fault evictions still be banned at a future date?

Probably, the government's long-term plan still includes a ban on section 21 no-fault evictions, but its implementation has been delayed.

What changes survive in the Renters Reform Bill 2023?

However, other aspects of the Bill may see earlier enactment.

These include

• Regulations for annual rent increases allow tenants-increasingly-love-corporate-landlords'>landlords to adjust rents to market prices with a two-month notice period.
• Tenants contesting excessive increases inconsistent with market prices can take the matter to a tenancy-agreements-made-easy'>planetrent.co.uk/blog/could-a-tax-tribunal-ruling-mean-btl-investors-avoid-3-stamp-duty-surcharge'>tribunal.
• There are also plans to simplify the eviction process for nuisance tenants, particularly those involved in anti-social behaviour or frequently missing rent payments.
• New grounds for repossession are also expected, catering to tenants-increasingly-love-corporate-landlords'>landlords selling their property or relocating themselves or family members.

Pets and the Renters Reform Bill: Improvement on rights to keep pets

Renters will be granted the option to seek permission to have pets on their leased premises. tenants-increasingly-love-corporate-landlords'>Landlords cannot impose general bans on animals. tenants-increasingly-love-corporate-landlords'>Landlords must assess each request and are prohibited from unreasonably rejecting them. In cases of refusal, tenants have the right to challenge the decision. The government outlines that a refusal might be considered reasonable if a pet is deemed excessively large for a small property or if another tenant has a pet allergy.

Renters Reform Bill: New ombudsman for resolving disputes will also resolve disputes for landlords who don't use agents

The government has plans to establish a new ombudsman to enforce comprehensive policy changes and swiftly resolve minor disputes between tenants and tenants-increasingly-love-corporate-landlords'>landlords. The aim is to eliminate the need for court intervention. Presently, only letting agents are mandated to participate in an ombudsman scheme. The Bill, in development for four years, was finally published in May. It passed its second reading in parliament on October 23, receiving unanimous support without a vote, thanks to cross-party backing. Although the proposed rule changes faced opposition from the Conservatives, their revival remains possible if a government change occurs following the next year's general election.