What’s likely to happen with the Renters (Reform) Bill in 2024?
Read the potential outcomes of the Renters (Reform) Bill in 2024, shedding light on its likely impact on renters and the rental market
As it stands at mid-December 2023, the Bill has reached the Committee stage, where all the clauses and proposals for change are analysed by a select group of MPs, who also hear and take into account evidence from various interested parties.
Once the Committee has reported to Parliament, all proposed amendments will be debated until a final draft can be agreed.
The leading industry body, Propertymark, gave evidence at the recent Committee stage of the Bill’s progress through Parliament and says its members are concerned about the private rented sector becoming ‘increasingly hostile’ to landlords and agents.
The biggest issue is the proposed abolishing of Section 21 because landlords are simply not confident that the grounds for possession under Section 8 give them enough protection.
With many grounds remaining discretionary, the potential cost of evicting a tenant through the courts and length of time that could take are a major concern.
And 93% of letting agents surveyed by Propertymark said the removal of fixed-term tenancies would negatively affect landlords and agents – especially those in the student rental market, which relies on fixed-term agreements to keep the availability of properties in line with the academic year.
The next debate of the Bill is likely to take place early in 2024 and we expect it may take some time to achieve a final draft – one hurdle being that Michael Gove has already made it clear that the current government won’t move ahead with getting rid of Section 21 until the court system has been improved.
In contrast, Angela Rayner for the Labour Party has said that notwithstanding problems with the courts, they would be looking to remove Section 21 from their first day in office.
So, whatever happens over the next few months, with a general election imminent, everything could change and the Bill itself in its current form could even be scrapped.
To find out what’s currently included in the Bill and for all the latest developments, visit our dedicated Renters (Reform) Bill hub.
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In his Autumn Statement 2023, the Chancellor announced that Local Housing Allowance will be increased to cover the lowest 30% of local rents.
That will give around 1.6 million households an average of £800 a year in extra support from April 2024.
Other measures coming into effect in April to help tenants on the lowest incomes include:
Benefits in England and Wales will go up by 6.7%
The minimum wage will rise to £11.44 an hour for those aged 21 and over
And all workers should see a slight improvement in their take-home pay, as a result of cuts to National Insurance.
All these changes should help tenants, particularly those receiving benefits, to afford their rent and reduce the chance of landlords having to deal with arrears.
Read more about renting to tenants on Universal Credit and housing benefit.
