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Reform Bill

Renters (Reform) Bill - what's next?

The Renters (Reform) Bill was the Government's plan to transform the private rented sector, promising more security for tenants; including controversial plans to abolish section 21, get rid of fixed term tenancies and introduce a new registration scheme for landlords.

Years of debate about what the Bill should look like followed the 2019 announcement, with the proposed legislation finally presented to Parliament in May 2023. This means even greater uncertainty for landlords who have already been waiting for five years for answers on how they must run their businesses going forward. The repercussions could be far- reaching - for landlords and tenants.

Once the election has taken place the new Government will decide how to progress with plans to reform the private rented sector.

This Bill is highly likely to be passed in 2025

What to expect:

The best we can hope for is the Section 21 remains in force. The greatest reason why the Bill shall be introduced is not because of the Section 21 Notice but the Landlord and Property Registration enables the HMRC to have total control and identify all rental incomes - the penalty for landlords with no landlord or property licence means no rent lawfully due and you cannot remove the tenant.

All tenancies shall become Assured Tenancies - The tenant shall have security of tenure until they leave voluntarily, or a landlord can satisfy a court that the tenant should be ordered to leave because the Landlords needs outweigh the Tenants (reasonable circumstances, which will be defined in law).

Abolish a landlord's mandatory right to regain possession of their property, so, the Section 21 shall cease to exist and be replaced with New Grounds under a fault-based eviction using the Section 8 Notice. Landlords court fees shall rocket, and eviction timeframes shall increase.

There shall be greater compliance, punitive rent repayment orders and mandatory court hearings for every tenant who will not vacate when asked to.

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