THE PRIVATE RENTED SECTOR IS CHANGING!

On 17^th June 2022, the Government set out their plans to reform the Private Rented Sector, outlining their proposals for the Renters Reform Bill - detailed in parliament as the Fairer Private Rented Sector White Paper.

Proposals include:

Abolishing section 21

Section 21 will be abolished, so that landlords will only be able to evict a tenant in reasonable circumstances, which will be defined in law.

Reforming grounds of possession under Section 8

The government will reform the grounds of possession under Section 8.  A new mandatory ground for repeated serious arrears, making eviction mandatory where a tenant has been in at least two months’ rent arrears three times within the previous three years, regardless of the arrears balance at hearing. A new ground will be introduced for landlords who wish to sell their property and allow landlords and their family members to move into a rental property. 

The notice period for the existing rent arrears eviction ground will be increased to four weeks while the mandatory threshold of at two months’ arrears at time of serving notice and hearing will remain. In cases of criminal behaviour or serious antisocial behaviour, the notice period for the existing mandatory eviction ground will decrease.

Requiring properties to meet the Decent Homes Standard

Minimum housing standards for the private rented sector (PRS) will be introduced by widening the application of the Decent Homes Standard, which currently only applies to the social housing sector. Under the Decent Homes Standard, homes must be free from serious health and safety hazards and landlords must keep homes in a good state of repair so renters have clean, appropriate and useable facilities. The government will also expand Rent Repayment Orders to cover repayment for non-decent homes.

Establishing a new ombudsman covering private landlords

A single government-approved Ombudsman covering all private landlords who rent out property in England - regardless of whether they use a letting agent - will be introduced and membership will be mandatory.

The Ombudsman will have powers to "put things right for tenants", including compelling landlords to issue an apology, provide information, take remedial action, and/or pay compensation of up to £25,000. The government also intends for the Ombudsman to be able to require landlords to reimburse rent to tenants where the "service or standard of property they provide falls short of the mark". The Ombudsman’s decision will be binding on landlords, should the complainant accept the final determination and failure to comply with a decision may result in repeat or serious offenders being liable for a Banning Order.

Establishing a new property portal.

A new digital Property Portal will be introduced to "provide a single ‘front door’ to help landlords understand, and demonstrate compliance with their legal requirements".

Making all tenancies periodic

All tenants who would previously have had an Assured Tenancy or Assured Shorthold Tenancy will be moved onto a single system of periodic tenancies. Tenants will need to provide two months’ notice when leaving a tenancy, to "ensure landlords can recoup the costs of finding a tenant and avoid lengthy void periods". Landlords will only be able to evict a tenant in reasonable circumstances, which will be defined in law.

Changes will be introduced in two stages, providing at least six months’ notice of the first implementation date, "after which all new tenancies will be periodic and governed by the new rules". To avoid a "two-tier rental sector", all existing tenancies will transition to the new system on a second implementation date.

Doubling the notice periods for rent reviews

The minimum notice landlords must provide of any change in rent will be increased to two months.

Making it illegal for landlords to have blanket bans on renting to families with children or those in receipt of benefits

It will become illegal for landlords or letting agents to have blanket bans on renting to families with children or those in receipt of benefits ("No DSS").

Improving the rights of tenants to have pets in properties.

The government will legislate to ensure landlords do not unreasonably withhold consent when a tenant requests to have a pet. The government will amend the Tenant Fees Act to Act 2019 to include pet insurance as a permitted payment. This means landlords will be able to require pet insurance, so that any damage to their property is covered.

EPC

The White Paper also reaffirmed the government's intention to upgrade "as many homes as possible" to EPC Band C by 2030.

There’s still no dates for these proposals.

Please don't hesitate to contact me at M&M should you have any questions or concerns concerning this information.

Gemma Scott-Davies - Lettings Manager

gemmascott@mandmprop.co.uk  01474 321957