Renters Reform Bill – don’t panic it’s still a moveable feast

The key to this is simply that currently this is a Bill and not yet Law.  So whilst introduced to Parliament, it has a long road to travel before it becomes the law, a road that may see changes which could alter the proposed impact.  In addition, it is unlikely to receive Royal Assent until the end of the year or later.  Indeed, Government Guidance states its implementation will be “when the court system is ready to implement” as open ended as it gets!  We have also been advised that the Government will then provide 6 months’ notice of the first implementation of the new law and a further 12 months for existing tenancies to convert to the new system.  During this process, it could change, indeed significantly, so it is prudent to wait and see the Bill’s evolution before making decisions on any recommendations in response.

However,  for those who have not heard about the legislation proposed we have summarised some key points as follows:

• It is proposed to abolish no fault evictions.  This DOES NOT mean that you cannot get back possession of your property.  You Can, but only on certain grounds, for example, if you need to sell, move in or you are subject to mortgage repossession.  It is not intended to trap responsible Landlords, such as our clients.  The aim seems to be to prevent “rogue” Landlords serving notice to quit simply because, for example, their tenant voices legitimate complaints!
• Conversely, it is proposed to make it easier for Landlords to get possession of their property in certain circumstances.  These include, for example, anti-social behaviour where the claim for possession can be immediate; or if it is found the tenant has no right to rent, then possession can be within two weeks; or for wilful non-payment of rent with arrears of at least two months, then possession can be upon 4 weeks’ notice.
• It has proposed that there will be no fixed terms, so tenants can leave on 2 months’ notice tied to rent payment dates, but it would seem this is intended to cut both ways.  So for legitimate reasons the tenant could be asked to go on similar notice as detailed above.  There is no guaranteed tenure period proposed for either party.
• It is proposed that tenants will have the right to request a pet.  There will be exclusions and it is proposed to allow a pet insurance premium to cover any damage to be met by tenants.

So, for a responsible Landlord perhaps not such great changes are proposed as maybe feared.  No doubt, given many MPs are both Landlords and tenants of residential property this proposal for legislation may face significant interest and scrutiny as it has the potential directly to affect members.  (There is of course genuine concern for constituents both morally and with the election nearing).  Political debate, we hope, will raise questions over its efficacy and the professional bodies and influential property professionals will be lobbying MPs to ensure that this legislation is not ill conceived.

There are several elements, which in our opinion, could be changed.  For example, for legislation designed to recognise the needs of renters to have the right to a settled home, the proposal for an effectively rolling break will mean they will have no period of security over two months as a Landlord could choose to sell at any time and not be committed, even for a year.  This is not ideal and potentially costly for both parties.  In addition, the antisocial behaviour element at first sight seems straightforward but with noise, proof can be difficult.  Environmental Council Officers do not necessarily have capacity or funding to pursue claims and there is subjectivity as to what is acceptable; young families might be noisy, night workers sensitive during the day or the hard of hearing with volumes on high be seen as a antisocial!.  Accordingly, this element may need greater qualification and effective mechanisms to implement.

In conclusion, not only are we aware of the proposals, some of the team have read the Bill, (not an easy read).  We will monitor its progress through Parliament to provide meaningful updates and we will consider the consequences for our clients of the proposals upon its final reading and will still have time to review and then provide meaningful not speculative advice and recommendations.

Please do contact our professional team should you have queries about this or any of the many rules and regulations that already govern the residential lettings sector.