The Rental Reform Bill: What you need to know.

One question we are commonly asked as a letting agent is ‘how will the Rental Reform Bill will affect landlords’?

The Rental Reform Bill is set to make significant changes to the private rental sector in the UK. It currently going through Parliament but is expected to become law in 2024. It was introduced by the government in response to concerns about the lack of security for tenants in the private rented sector.

One of the most significant changes is the abolition of Section 21 eviction notices, which will make it much more difficult for landlords to evict tenants without cause. This means that landlords will only be able to evict tenants who are “at fault” for something; for example, tenants who do not pay rent or who engage in anti-social behaviour. These tenants are not protected, can still be evicted by their landlords using the current standard Section 8 eviction process.

There are some exceptions to this; landlords will still be able to evict for other personal reasons, such as wanting to live in the property themselves, moving an immediate family member in, or selling the property. Even then, the eviction process will not be quick, as landlords will not be able to serve notice within the first 6 months of the tenancy.

The bill also proposes to make it easier for tenants to keep pets, as landlords will no longer be able to blanket ban all pets. Instead, they will need to have a good reason for refusing a tenant’s request to keep a pet. However, landlords may ask their tenants to cover the cost of pet/home insurance to cover any potential damage.

These new laws will also allow tenants to have month-to-month tenancies, instead of the current system of six or twelve-month tenancies. This gives tenants more flexibility, as they can move out more easily if they need to. However, it also removes some of the security for landlords, as they will not know for sure how long a tenant will stay in the property.

All in all, this new reform bill will restrict what landlords can do with their own properties, giving tenants more protection. However, there are some exceptions expected, such as private student lets, but this is yet to be confirmed. It is important to note that the bill is still in its early stages, and it is possible that some of the proposed changes will be amended or removed before it becomes law.

Whether you’re thinking of buying a new investment property or looking for an experienced agent to help manage your portfolio, we can help with our expert advice.

We’d love to hear your thoughts on the new bill 💭🤔