Rent reform

Newspapers are full of stories of so-called 'rogue' landlords who can take proceedings against a tenant to regain possession of their property even though the tenant has looked after the property and paid their rent on time. This is the perfectly legal 'no fault' repossession.

The government has announced its intention to change this and to move the pendulum in favour of tenants. The government has introduced the Renters (Reform) Bill and states that it 'will improve the system for both the 11 million private renters and 2.3 million landlords in England'.

The Renters (Reform) Bill will:

• Abolish section 21 'no fault' evictions and move to a simpler tenancy structure where all assured tenancies are periodic – providing more security for tenants and empowering them to challenge poor practice and unfair rent increases without fear of eviction.

• Introduce more comprehensive possession grounds so landlords can still recover their property (including where they wish to sell their property or move in close family) and to make it easier to repossess properties where tenants are at fault, for example in cases of anti-social behaviour and repeat rent arrears.

• Provide stronger protections against backdoor eviction by ensuring tenants are able to appeal excessively above-market rents which are purely designed to force them out. As now, landlords will still be able to increase rents to market price for their properties and an independent tribunal will make a judgement on this, if needed. 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 which will provide fair, impartial and binding resolutions to many issues and 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 (giving good landlords confidence in their position), alongside providing better information to tenants to make informed decisions when entering into a tenancy agreement. It will also support local councils – helping them target enforcement activity where it is needed most.

• 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.

If introduced, these changes will represent the biggest changes to private rentals in England in a generation which will have far reaching effects, whether for buy-to-let landlords or prospective tenants. It will rarely have been so important to take specialist legal advice on these changes, whether a landlord or a tenant.

To discuss this or any other property matter, contact us.