The Renters Reform Bill has been discussed since early this year (2022), when the white paper ‘Levelling Up’ was published in February. The reform contains the Government’s plans to protect renters from the rising cost of living. The second white paper to be released, ‘A Fairer Private Rented Sector’, outlines these plans.

While it is contentious as to whether it will ultimately damage the private rented sector through loss of willing landlords, making it harder to find rented accommodation there are very clear proposals that should make renting fairer for those who do find it. Here are the chapters of that second white paper, in summary.

1. The Decent Homes Standard

For the first time, private landlords will be required to present decent homes for rent, meaning tenants are safe from health and safety hazards, such as fall risks, fire risks, or carbon monoxide poisoning.

Landlords must also make sure rented homes don’t fall into disrepair or have inadequate or badly positioned kitchens and bathrooms. They must have decent noise insulation, and not be too cold in winter, too hot in summer, or damp or mouldy.

The government says that ‘over a fifth of privately rented homes (21%) are non-decent, and 12% have serious ‘Category 1’ hazards, which pose an imminent risk to renters’ health and safety. They believe;

  • All tenants should have access to a good quality and safe home
  • No-one should pay rent to live in a substandard, or even dangerous, property
  • Standards in the Private Rented Sector should go beyond safety – an expectation that already exists in the Social Rented Sector
  • Landlords should have a clear benchmark for standards in the properties that they let.

And building on reforms already made to smoke detector law, for example, they aim to:

  • Halve the number of non-decent rented homes by 2030 by requiring privately rented homes to meet the Decent Homes Standard
  • Accelerate improvements to properties in the areas most needed.

 

2. Increased security and stability

This refers to making tenants feel more secure in their agreement by abolishing Section 21 and introducing Periodic Tenancies, so tenants have an opportunity to stay in their rented homes and accrue savings.

‘22% of private tenants who moved from privately rented accommodation between 2019 to 2020 did not end their tenancy by choice, including 8% who were asked to leave by their landlord and a further 8% who left because their fixed term ended,45 and nearly half of private renting households have no savings.’

Landlords can no longer use section 21 to evict tenants who challenge the conditions of the property or increase rents unjustifiably. And periodic tenancies will allow those who had prior Assured Tenancies greater flexibility if they wish to leave for purchasing a home or due to unreasonable living conditions, without being liable for paying a lengthy notice period.

In the meantime, for responsible landlords there will be greater support for the eviction of tenants in the case of repeated arrears and criminal activity.

  • No tenant should be evicted against their will without proper reason and proportionate notice
  • Tenants, whatever their circumstances, should have confidence that they can remain in their home and be able to put down roots in their communities
  • Tenants should be able to move if their life circumstances change or they are unhappy with the property
  • Landlords should be able to regain possession of their properties efficiently when they have a valid reason to do so.

The government intends to:

  • Abolish Section 21 ‘no fault’ evictions and deliver a simpler, more secure tenancy structure
  • Reform grounds for possession to make sure that landlords have effective means to gain possession of their property where necessary
  • Reform grounds for possession to support responsible landlords.

 

3. New private sector Ombudsman

The government recognises that with the abolition of Section 21 there may be an increase in disputes. For this reason, they will introduce a new single Ombudsman which private landlords will be required to join to protect consumer rights.

Some disputes can accelerate quickly to court proceedings, in which case the government ‘are committed to mainstreaming early, effective, and efficient dispute resolution throughout the private rented sector.’

The government believes that;

  • All tenants should be empowered to challenge poor practice by their landlord, including unjustified rent increases
  • Landlords and tenants should be supported by a system that enables effective resolution of issues.

And intends to;

  • Only allow increases to rent once per year, end the use of rent review clauses, and improve tenants’ ability to challenge excessive rent increases through the First Tier Tribunal
  • Strengthen tenants’ ability to hold landlords to account and introduce a new single Ombudsman that all private landlords must join
  • Work with the Ministry of Justice and Her Majesty’s Courts and Tribunal Service (HMCTS) to target the areas where there are unacceptable delays in court proceedings.

 

4. Compliance and enforcement

There will be a new digital Property Portal which will make clear to landlords, what their responsibilities to the law are, and make it easier for landlords to comply. It will also give compliant landlords a place to demonstrate their compliance to potential tenants.

This comes in tandem with written tenancy agreements designed to outline both landlord and tenant responsibilities and avoid disputes.

The Portal will also aid local councils in the tracking of criminal landlords and make the offences publicly available. Currently offences can only be entered into the existing database when two more are committed – the reform will allow a single offence to be shared with other councils and made public.

The government states;

  • Landlords and tenants should understand how to comply with their duties and obligations
  • Wilfully non-compliant or criminal landlords have no place in the market
  • Local councils need strong and effective enforcement tools to crack down on poor practice.

And the intentions are to;

  • Introduce a new Property Portal to make sure that tenants, landlords and local councils have the information they need
  • Strengthen local councils’ enforcement powers and ability to crack down on criminal landlords.

 

5. Positive experiences

There will be big changes to landlords who unjustifiably refuse to rent to people in receipt of benefits, or with young children or pets. The government are also continuing to explore how to help bridge the gap between deposits being returned and a deposit on a new property being laid down.

‘Everyone living in the PRS has the right to a quality property that feels like their home and meets their needs.’

Put simply;

  • All tenants should be able to treat their house as their home
  • Tenants seeking a home in the private rented sector should not be turned away unreasonably
  • Tenants should not face financial barriers that prevent them moving when they wish to.

The government says they will;

  • Make it illegal for landlords or agents to have blanket bans on renting to families with children or those in receipt of benefits (so called ‘No DSS’ bans)
  • Give tenants the right to request that they can have a pet in their property, which the landlord must consider and cannot unreasonably refuse
  • Work with industry experts to monitor the development of innovative market led solutions to passport deposits.

In conclusion

The government says, ‘All tenants deserve a safe, secure, good value and decent home wherever they live. Good landlords and agents need support to manage their businesses effectively. And local councils should be able to effectively hold the worst landlords to account. Our reforms will create a rental market that is fairer and more effective for tenants and landlords.’

The full and rather lengthy document can be viewed in detail here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1083378/A_fairer_private_rented_sector_web_accessible.pdf

If you’re a landlord about to commence a hefty refurb on your rental properties, get in touch with us to make a plan of action.