The Renters (Reform) Bill is part of the government’s commitment to create a healthier private rental sector. This bill was introduced to Parliament on May 17, 2023, to create fairer, more secure and better rental conditions for both landlords and tenants.

As a property owner, it’s important to understand this law to ensure your rental properties are compliant.

In this article, you’ll get a clearer understanding of the Renters (Reform) Bill and its current status. You’ll discover how it is different from the Renters’ Rights Bill, another legislation that’s set to transform the UK rental market. You’ll learn how this will affect your rental properties and what you can do to stay 100% compliant.

What is the Renters (Reform) Bill?

The Renters (Reform) Bill is meant to improve the rental sector for the millions of tenants and landlords in England. It started with a 5-year extensive research and consultation project involving key groups that represented landlords and tenants.

With the private rental sector growing significantly over the past decades, authorities observed gaps in the rights of private renters. There’s no security as a result of Section 21 evictions, and decency standards aren’t met. Responsible landlords are also at a disadvantage because they are indirectly sabotaged by delinquent landlords.

The Renters (Reform) Bill intends to fill these gaps and improve the overall private rental sector. This bill seeks to:

• Abolish Section 21 evictions to simplify the tenancy structure and provide security for tenants (even empower them to challenge poor landlord practices).
• Create comprehensive possession grounds to clarify and strengthen the landlord’s rights to recover their property.
• Reduce backdoor evictions by improving protective measures and ensuring fair rental rate hikes.
• Establish a Private Rented Sector Landlord Ombudsman for a fair, impartial and irrevocable resolution to common issues without going to court.
• Set up a Privately Rented Property Portal to educate landlords about their legal obligations and compliance, inform tenants about their rights and support local councils, specifically when enforcing the law.
• Give tenants better pet-ownership rights, where landlords can’t “unreasonably refuse” a tenant’s request to bring their pets into the property. At the same time, it gives landlords the right to request pet insurance to cover pet-related property damages.
• Implement the Decent Homes Standards so renters can enjoy premium living conditions.
• Discourage blanket bans and make them illegal so there’s no discrimination against renters.
• Boost the local council’s enforcement abilities and encourage them to report on enforcement activities.

What is the Current Status of the Renters (Reform) Bill?

The latest version of the Renters (Reform) Bill was last 1 May 2024. It completed its rounds in the House of Commons. While it’s already in the House of Lords, it’s currently stuck at the 2nd reading with no announcement if it will progress further.

The bill’s lack of progression may be caused by the changing of governments during the 2024 elections. Not only that, the introduction of the Renters’ Rights Bill shifted the government’s focus, as the latter may be more likely to progress into law and be implemented.

Renters (Reform) Bill VS Renters’ Rights Bill

The Renters (Reform) Bill is different from the Renters’ Rights Bill. While both seek to reform the private rental sector, they come with some differences.

In summary, the Renters (Reform) Bill was introduced by the Conservative government. It focuses on abolishing the “no-fault” evictions, adapting periodic tenancies and enhancing property standards.

The Renters’ Rights Bill, on the other hand, was proposed by the Labour Party. It expands the provisions of the Renters (Reform) Bill through longer eviction notice periods, stringent rent controls and more tenant protections. This makes the bill more tenant-centric than the other.

Among the key differences that should be noted are as follows:

• The Renters (Reform) Bill seeks to abolish Section 21 so tenants can only be evicted with just cause (Section 8 grounds for possession). The Renters’ Rights Bill seeks to abolish Section 21 as well, but with Section 8 getting a more transparent process and tighter rules on repossession, thereby ensuring protection for both tenants and landlords.
• The Renters (Reform) Bill was all about broad changes (e.g. tenancy reforms and national landlord register), while the Renters’ Rights Bill went further to include rent repayment offences and compliance penalties.
• The Renters (Reform) Bill provided the groundwork for the Decent Homes Standard, while the Renters’ Rights Bill specifically stated that it should be applied to the private rental sector.
• The Renters (Reform) Bill acknowledges issues over rent hikes, but it’s the Renters’ Rights Bill that prohibits rental bidding and gives detailed rent increase limits that align with Section 13 of the Housing Act 1988.
• The Renters (Reform) Bill got started on the landlord database and mediation mechanisms, while the Renters’ Rights Bill emphasised the need for a dedicated ombudsman and sector-wide database to resolve disputes quickly.

Learn more about the Renters’ Rights Bill.

Common Questions about the Renters (Reform) Bill

Here are the common questions landlords ask about the Renters (Reform) Bill.

How will the abolition of Section 21 affect landlords?

Landlords will be required to provide valid grounds for eviction. This includes rent arrears or plans to sell the property. This is meant to prevent unjust evictions and support housing stability.

What are the implications of periodic tenancies?

Periodic tenancies are open-ended arrangements. It offers tenants flexibility when it comes to ending their tenancy agreements. It means they’re not allowed to end the tenancy within the first 6 months, but after that, they are free to stay or leave as long as they provide their landlord 2 months’ notice. The landlord can also evict the tenant after the first 6 months, as long as their reason falls under the grounds for possession.

How will the rent increase regulation impact landlords?

Landlords can only implement a rent increase through a completed form that will be published on GOV.UK and served to the tenant. There’s no further action from the landlord after this.

The tenant, if they accept, will simply pay the new amount. However, if they don’t want to accept, they can file a dispute through the First-tier Tribunal. The tenant needs to prove the rent is above the market rate. This should be done before the effectivity date of the rent increase.

How can landlords comply with the Decent Homes Standard?

Applying the Decent Homes Standard to private rental properties is part of the government’s initiative to reduce the non-decent rented homes by half before 2030. The bill allows local councils to enforce the DHS, but the details of the standards are still being defined.

While this is being finalised, landlords should make an effort to ensure compliance with other housing regulations (e.g. EPC, gas safety, fire safety, etc). Regular upkeep and maintenance are also required to maintain the premium quality of rental properties.

How can landlords prepare for the Renters (Reform) Bill?

Landlords should be proactive in monitoring the progress of the bill. This will help them prepare for its implementation and allow them to take note of changes that might affect compliance.

Apart from monitoring the progress, landlords can also do the following:

• Review tenancy agreements to see where changes have to be made to comply.
• Check the property to see how it measures against the Decent Homes Standard.
• Understand the rights of both tenants and landlords, as indicated in the bill.

Landlords can also partner with a property management company that offers compliance services. Companies like City Relay can guide you through new rules and regulations impacting the private rental sector.

Prepare For the Renters (Reform) Bill

The Renters (Reform) Bill, once it passes into law, will cause a significant shift in the private rental sector in the UK as it aims to balance the interests of both landlords and tenants. This is why property owners should understand how these changes will affect their properties so they can ensure compliance.

While it may be challenging to keep up with all the rules and regulations, partnering with a property management company like City Relay can help. It’s their business to monitor these changes, so you can rely on their collated updates for information. Their expertise will help ensure your property is 100% compliant with all legal requirements. Your property will be protected, enabling you to enjoy high occupancy rates and rental income without the hassle of the daily property operations.

Find out how City Relay can support you in adapting to the new rules and regulations in the private rental market. Get a free rental estimate for your property now.