It promises to be the biggest shake-up in the private rented sector in 40 years but what will The Renters (Reform) Act mean for landlords and tenants? CHAN KHANGURA, proprietor and managing director of Whitegates Estate Agents Huddersfield, Brighouse & Holmfirth explains what we know so far.

The Renters (Reform) Act has been in the pipeline since 2019 and still has a way to go before it becomes law.

There are more readings due to take place in the Houses of Parliament before a further two committee readings.

Let’s break down what’s involved and how it might affect you as a landlord.

“It is not as bad as some of the rumours.”

The following will run from the date the Act comes into effect and for ALL tenancies:-

  1. Periodic Tenancies

All tenancies will be periodic tenancies from the beginning;

Tenants will be allowed to serve two months’ notice at any time;

This includes existing tenancies which are in a fixed term on the ‘commencement date’, they will convert to periodic.

  1. Rent Increases and Bidding Wars

There will be a ban on bidding wars. It will become illegal to ask for, or accept, bids higher than the advertised rent.

You will legally be required to publish an asking rent for the property.

In-tenancy rent increases will be limited to once a year by the serving of a section 13 notice but are not allowed during the fixed term of a tenancy. The positive of this is that it can encourage longer-term lets in your properties.

  1. Safe Housing

There will now be a Decent Homes Standard to the private rented sector to ensure homes are safe, secure and hazard free.

‘Awaab’s Law’ will apply – letting tenants challenge dangerous conditions and setting clear legal expectations about the timeframes within which landlords in the private rented sector must adhere to.

  1. Tenants on benefits or with children

It will be illegal to discriminate against tenants in receipt of benefits or with children when choosing to let your property.

You can say no to someone with children if it would breach overcrowding rules.

  1. Landlord Ombudsman Service

This will provide fair, impartial and binding resolution, to both landlords and tenants and reducing the need to go to court. This should help save you time and expense. ALL landlords are required to join.

  1. Pets

Tenants will have the right to request a pet:-

You must consider the request and cannot unreasonably refuse. BUT you will be able to request insurance to cover potential damage from pets if needed.

  1. Evictions & Notices

You are NOT powerless. You will still be able to evict tenants who break the rules under Section 8 of the Housing Act.

This covers:-

Non-payment of rent;

Damage to the property;

Anti-social behaviour.

Although you will need a court order, the aim is that this will be a streamlined process going forward.

A new ground for possession will allow landlords renting to students in HMOs to seek possession ahead of each new academic year.

Notice to sell or move back into the property will be extended to four months and will apply where the tenants have been in the house for a minimum of one year before you can evict them on these grounds.

Severe anti-social behaviour – Requires no notice, you can just start proceedings.

  1. Energy Efficiency and Property Standards

There will be stricter regulations on the quality and energy efficiency of rental properties:-

By 2030 you need to ensure that your properties have an Energy Performance Certificate (EPC) rating of C or better. We are not sure at this stage if this is feasible.

You will need to ensure properties are maintained to a certain standard, particularly regarding hazards.

  1. Private Rented Sector Database

This aims to bring together key information for landlords, tenants and councils.

Tenants will be able to access information to inform choices when entering new tenancies.

Landlords will be able to quickly understand their obligations and demonstrate compliance, providing certainty for tenants and landlords alike.

Councils will be able to use the database to target enforcement where it is needed most.

Rogue Landlords

We know as a landlord you act in a responsible way. The changes will help to weed out the small number of unscrupulous landlords who are tarnishing your reputation.

The bill was first mooted in 2019 by the then Prime Minister Theresa May. The detail is still to be finalised and we’ll be watching how it progresses through Parliament over the coming months.

For more information or help contact Whitegates HERE.