As a landlord, it may be difficult at times to build positive relationships with your tenants, and now there are changes to consider in terms of the renters reform bill. What are these changes, and how do they affect landlords?
In this blog post, we will look at:
What is the renters reform bill?
How will the changes affect all parties involved?
Are there any other beneficial changes for landlords to consider?
What is the renters reform bill?
The renters reform bill was introduced to Parliament on 17 March 2023 and is a bill that is looking to change the private rented sector for both landlords and tenants. The aim of the bill is to bring about a higher level of housing quality.
The changes in the bill aim to make the letting process fairer and safer by abolishing section 21, “no fault” evictions and introducing a Private Rented Sector Ombudsman.
Instead of landlords being able to repossess their property at a whim, tenants will be provided with more security and can only be evicted from the property under reasonable circumstances. Consequently, tenants will be able to challenge unfair decisions made by landlords, and both parties will have to go through a third party when settling disputes.
Let’s take a look at the changes in more detail.
How will the changes affect all parties involved?
- The abolition of Section 21 “no-fault” evictions will provide tenants with more security and empower them to challenge unfair rent increases.
- The introduction of more comprehensive possession grounds will make it easier for landlords to repossess properties when tenants are at fault, focusing on reasons such as anti-social behaviour or rent arrears.
- The introduction of a new Private Rented Sector Ombudsman, acting as a mediator between landlords and tenants.
- The introduction of a Privately Rented Property Portal will provide information on legal obligations for landlords and tenants.
- The ability for tenants to request permission to have pets on the property without landlords automatically refusing this request.
We can see that these changes are designed to make the private rented sector fairer for everyone involved in the letting process. Granted, change always brings about some anxiety; however, it is important to remember that these changes are for the whole process’s betterment.
Are there any other beneficial changes for landlords to consider?
- Landlords will have the ability to increase rent prices more easily (this will need to be approved by an independent tribunal).
- Landlords can move close family members into their property without needing to evict current tenants.
- Landlords will be able to sell the property without having to evict the current tenant.
Despite some of the changes to the Renters Reform Bill, it is a positive step forward for landlords and the private rented sector as a whole. While some landlords may be concerned about the impact of some of the changes, it is important to remember that they are designed to make the sector fairer for everyone involved. Equally, if you’re a landlord and wish to learn more about landlord insurance, explore here.