
Renters Reform Bill

What we know so far...
We've tried to keep it simple however with the upcoming changes, we understand landlords have questions, feel free to get in touch with us to discuss further.


Tenancy Agreements
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No more fixed term tenancies
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All tenancies will be periodic, on a month by month basis
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Tenants will have a 12 month protected period at the beginning of the tenancy from the landlord selling or moving in
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Tenants will be able to stay in their rented property until they decide to give notice.
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The landlord can still give notice with grounds.


Selling Your Rental
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Strengthened rights to reclaim your property
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Provide the tenants 4 months notice
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You wont be able to use this ground for possession in the first 12 months of tenancy
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You won’t be able to relet the property for 12 months
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You could sell to another buy to let investor and keep the tenant in the property


Moving Back In
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Again strengthened rights to reclaim your property if you or a family member want to move back in.
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Provide the tenants 4 months notice
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You wont be able to use this ground for possession in the first 12 months of tenancy
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You won’t be able to relet the property for 12 months


Tenant in Arrears
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Tenants will be protected if they fall into temporary rent arrears.
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The arrears threshold for eviction will change to a tenant being 3 months in arrears,
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The notice period will then be 4 weeks.
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Landlords can also continue to use the discretionary rent arrears grounds, for example if rent is repeatedly late


Giving Notice
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The government believe landlords must enjoy robust grounds for possession where there is good reason to take their property back.
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Landlords must, as in the current system, go to court if a tenant does not leave.
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You will need to provide evidence that the ground is met.
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Where a tenant is at fault, landlords can give notice using the relevant grounds at any point in the tenancy.
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This includes where a tenant commits antisocial behaviour, is damaging the property, or falls into significant arrears.


Mandatory Grounds
For mandatory grounds, the court must award possession if the ground is proven.
These grounds include the below and length of notice:
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Occupation by Landlord or Family (4 months)
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Selling (4 months)
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Redevelopment (4 months)
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Anti Social Behaviour (can begin proceedings immediately)
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No Right to Rent (2 weeks)
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Rent Arrears (4 weeks)
Other grounds come under mandatory grounds, see government website for more info


Discretionary Grounds
For discretionary grounds, the court can consider if eviction is reasonable, even when the ground is met.
These grounds include the below and length of notice:
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Any rent arrears (4 weeks)
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Persistent arrears (4 weeks)
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Breach of Tenancy (2 weeks)
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Deterioration of Property (2 weeks)
Other grounds come under discretionary grounds, see government website for more info


Notice from Tenants
Tenants able to stay in their home until they decide to end the tenancy by giving 2 months’ notice in line with the end of a rent period.


Increasing Rent
Landlords will still be able to increase rents once per year to the market rate – the price that would be achieved if the property was newly advertised to let.
Tenants will be able to challenge unreasonable rent increases.
Rent review clauses will not be permitted.
A ‘Section 13’ notice will need to be served, setting out the new rent and giving at least 2 months’ notice of it taking effect.


Rental Bidding
Landlords and letting agents will be required to publish an asking rent for the property.
It will also prohibit them from asking for, encouraging, or accepting any bids above this price.


Landlord Database
Landlords will need to be registered on the database or could be subject to penalties. It will be required in order to use certain possession grounds. The government will ensure landlords are always able to rectify non-compliance, so they are not prevented from regaining possession indefinitely. These restrictions will not apply to antisocial behaviour grounds.


Discrimination
Landlords and agents will continue to have the final say on who they let their property to and can carry out referencing checks to make sure tenancies are sustainable for all parties. They will be able to do this based on affordability, but not on the basis the prospective tenant has children or is in receipt of benefits.


Pets
The bill will allow landlords to require insurance covering pet damage. This will provide landlords with reassurance that any damage caused by a pet can be taken care of, and that the responsibility for preventing and resolving damage caused by a pet will fall to the tenant.


Decent Homes
Introducing a Decent Homes Standard (DHS) in the private rented sector for the first time. The bill will also extend Awaab’s Law, ensuring that all renters in England are empowered to challenge dangerous conditions and that all landlords must take swift action to make sure homes are safe.


Implementation
It will be introduced in one stage meaning the new tenancy system will apply to all private tenancies and existing tenancies will convert to the new system.
Existing fixed term tenancies will convert to periodic tenancies.