The Renters’ Reform Bill is a piece of legislation that has been introduced to parliament. In its plans, it outlines the proposal to abolish section 21 and for periodic tenancies to become standard. If passed through parliament, it will provide a fundamental overhaul of the rental sector. The bill was introduced by the government, titled ‘The Renters’ (Reform) Bill’ on 17 May 2023.

The bill aims to deliver on the government’s commitment to bring in a better deal for renters. This includes abolishing ‘no fault’ evictions and reforming landlord possession grounds. It will legislate for reforms set out in the private rented sector white paper published in June 2022.

What Is The Renters’ Reform Bill And What Is Included?

This development marks a monumental step forward, representing a substantial overhaul of existing standards. The government’s Renters’ Reform Bill has been developed in consultation with landlord and tenant groups over the past 5 years. The Renters (Reform) Bill states:

• Abolish section 21 ‘no fault’ evictions and move to a simpler tenancy structure where all assured tenancies are periodic.
• Introduce more comprehensive possession grounds so landlords can recover their property (including if looking to sell or move in family).
• Provide stronger protections against backdoor eviction. This is achieved by ensuring tenants are able to appeal excessively above-market rents, intended to force them out. As now, landlords will still be able to increase rents to market price for their properties. If needed, an independent tribunal will make a judgement on this. To avoid fettering the freedom of the judiciary, the tribunal will continue to be able to determine the actual market rent of a property;
• Introduce a new Private Rented Sector Ombudsman for private landlords. This will provide fair, impartial, and binding resolutions to many issues. It will also prove quicker, cheaper, and less adversarial than the court system;
• Create a Privately Rented Property Portal to help landlords understand their legal obligations and demonstrate compliance. This is alongside providing better information to tenants to make informed decisions when entering into a tenancy agreement.
• Give tenants the right to request a pet in the property, which the landlord must consider and cannot unreasonably refuse. To support this, landlords will be able to require pet insurance to cover any damage to their property.

Why Have The Government Introduced The Renters’ Reform Bill?

The Renters’ Reform Bill presents an array of interesting and speculative measures which aim to enhance the private rented sector. This bill also wishes to foster a harmonious bond between landlords and the 4.4 million UK citizens who rent privately. It not only provides crucial assistance to those grappling with the burden of the cost-of-living crisis but also strives to rectify ‘arbitrary and unfair’ rent escalations, while introducing additional safeguards for the most vulnerable. Notably, it seeks to eliminate Section 21 evictions, ensuring enhanced protection for tenants in need.

We hope this has outlined to you exactly what the Renters’ Reform Bill is. If you’d like to know any further information on anything mentioned, or anything accounting related for that matter, please do not hesitate to get in contact with us.