From abolishing 'no fault' evictions to permitting pets in flats, Sweeney Miller Law's landlord and tenant team reviews the Government's proposals.
In May 2023, the Renters’ (Reform) Bill (‘the Bill’) was introduced to Parliament with the promise that it will revolutionise and standardise the relationship between private landlords and tenants. The Bill aims to empower renters to challenge poor landlords and to simplify the process for landlords to recover their properties when necessary. Here are some of the main proposed changes.
Abolishing ‘no fault’ evictions
For landlords, perhaps the most significant proposal is the abolition of Section 21 ‘no fault’ evictions, under which landlords have been able to evict tenants without having to establish fault. Under the Bill, landlords can only evict under reasonable, legal circumstances – such as repeated tenant arrears, to sell up, or to move a family member into the property. This proposal is causing alarm in the buy-to-let market as it will no doubt make it harder to repossess a property.
Periodic tenancies and notice periods
Also outlined in the Bill, and a key consideration for landlords, is the Government’s plan to move all Assured Shorthold Tenancies, currently the most standard form of rental agreement, to a single system of periodic tenancies. This basically means that most tenancies will move from a fixed initial six or 12 month contract to a rolling contract without a specific end date from the start. Under the new scheme, tenants would be required to give at least two months’ notice to leave to protect landlords and avoid ‘lengthy void periods’ with untenanted properties. For landlords looking to increase rent, notice periods will be raised to two months, rather than one. This may cause some issues with student lettings which traditionally run as fixed term tenancies alongside the academic year.
Ombudsman service and property portal
A new Ombudsman service and digital property portal are also included in the Bill with the intention of “giving confidence to good landlords while driving the criminal minority out of business”. The Ombudsman will be empowered to provide efficient and costeffective resolutions to tenancy disputes. It is likely to be compulsory for all private landlords to join.
The proposed digital property portal will act as a “single front door” for landlords, tenants and local authorities looking for useful information, including a landlord’s historic compliance and potentially also including data from the Database of Rogue Landlords.
Pets in lets
According to Battersea Cats & Dogs Home, tenants being unable to find a suitable rental property allowing their pet is one of the most common reasons for animals needing to be rehomed. Under the Bill, landlords cannot reasonably withhold consent if a tenant requests permission for a pet in their home; however, tenants must provide written confirmation that they have sufficient pet insurance or commit to paying for any damage caused to the property.
Sweeney Miller Law’s view
Commenting on the Bill, Surbhi Vedhara, Managing Partner at Sweeney Miller Law said: “The Bill brings forward some interesting considerations for both tenants and landlords in the private rented sector, and it is great to see the Government championing ‘good landlords’. However, the changes to Section 8 and the abolition of Section 21 notices, in particular, may become a legal tightrope for some landlords, so it will be crucial to have a legal team on side that understand the changes and how to avoid lengthy, and potentially costly, litigation.
Realistically, these planned changes are unlikely to come into force for at least another year, but landlords should be thinking about and planning for their implications sooner rather than later. The devil is in the detail and we await further details of what the changes will mean in practise. We hope to see the introduction of reforms that balance the interests of both landlords and tenants.”
Bright future?
Recent press reports suggest that the North East is becoming the ‘buy-to-let capital of Britain’ as a result of the promise of low property prices and high rental yields. Property sales are up by 7%, compared to a fall of 7.5% nationally and, in the past year, over a quarter of purchases in the North East were made by buy-to-let investors. The average rental yield in the region is reported to have topped 8%, significantly above the average in London and the South East of around 5.5%.
Expert team
Sweeney Miller Law has dedicated Buy-to-let and Landlord and Tenant teams dealing with all aspects of rental property for clients across the North East and nationally, working with established landlords with an extensive portfolio, through to first time property investors, such as those looking to top up their retirement income or provide accommodation for their children at University.
Alongside other prominent regional businesses, Sweeney Miller Law is also part of the North East Landlords network, offering regular events, support and updates to landlords in the local area from industry experts.
For any questions or advice about the impact of the Renters’ (Reform) Bill, or any other rental property queries, get in touch with Sweeney Miller Law on 0345 900 5401 or email enquiries@sweeneymiller.co.uk or visit www.sweeneymiller.co.uk