The Renters (Reform) Bill bill has been in the news for most of 2023, but what do the latest developments from last week mean for you?

The Renters' (Reform) Bill just had its second reading in Parliament.

Any proposed Bill needs to go through a process - firstly in the House of Commons, then in the House of Lords, and finally it requires Royal approval. Bills are often amended as they go through this process. Last week’s reading involved some major potential changes, but before we look at that, a reminder of what the Bill was intended to do.

So what areas does the Bill cover?

The Bill included a number of reforms and we’ve highlighted some of the main planned changes and what they might mean for tenants and landlords.

Ban on no-fault evictions.

At the heart of the Bill is the banning of Section 21.

Section 21 is the process by which landlords serve notice on tenants when they wish to take a property back. When this notice is served, tenants have two months to leave the property.

Under this Bill, the plan was that landlords would only be able to serve notice if they have a ‘valid’ reason such as wishing to sell the property.

Rent increases

Landlords will only be able to increase rents once a year and will need to give a minimum notice period of 2 months.

Tenancy length

Minimum contract lengths for tenants plan to be abolished although a minimum notice period of 2 months will still be required to be given.

Pets

Tenants will be able to request permission to have a pet in their home and a landlord will not be able to unreasonably withhold consent.

Tenants will need to provide confirmation in writing that they have taken out pet insurance or that they will pay the landlord for damage caused.

Big news from the second reading last week.

In a surprise move to some, but not others, the government has announced it will not be proceeding with the banning of Section 21 ‘until reforms to the justice system are in place’. Furthermore, Mr Gove, the housing secretary, stated .. ‘a fast and efficient court system is critical to making sure the new system works in practice’

Does this mean Section 21 will stay?

The short answer is, for now, yes.

Is the delay good news for tenants?

The general view is no. Tenants can still be given notice by a Landlord to leave a rental property with 2 months notice or at the end of the tenancy contract.

Is it good news for landlords?

The verdict from landlords has generally been in favour of keeping Section 21 in place. The argument has been that the proposed Bill offers less certainty to landlords whilst adding additional cost and administration burden. It is expected that landlords will continue to sell up which may mean less properties available for rent.

What happens next?

As the Bill was passed in its revised format, it will continue along the Parliamentary process.

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Remember the content provided in this article is for information purposes only and should not be considered as advice.