Renters (Reform) Bill latest highlights
We’ll keep you updated on how the reforms will affect you as the details emerge
The long awaited Renters (Reform) Bill returned to Commons for its third reading (the report stage) on 24 April 2024, where MPs considered over 200 new amendments to the legislation from both sides of the house ahead of a final vote before it continued its passage to the House of Lords.
The Government accepted key amendments to the Bill, and it was voted through this final stage in the Commons, containing several new concessions to landlords.
Despite criticism from Shadow Housing Minister, Matthew Pennycook, that the Bill contained “numerous defects, deficiencies, omissions and loopholes”, Levelling Up Minister, Jacob Young, said the Bill
“will create a fairer private rented sector for both landlords and tenants.”
However, renters' groups criticised the amended Bill, arguing that protections for tenants had been watered down, and Renters’ Reform Coalition, a campaign group including Shelter, withdrew its support for the Bill.
Described by the NRLA as:
“a compromise, which allows the Government to deliver its policy of abolishing no-fault possessions, without destroying landlords’ confidence to invest [the Bill] seeks to deliver more security to tenants, whilst providing landlords with some additional options should things go wrong.”
In its heavily amended form, the Bill has now progressed to the House of Lords for further scrutiny, where it will go through a similar process to the Commons – a first and second reading, followed by a more detailed committee stage, before returning to the full Lords chamber for a third reading and the Commons for the final session.
In terms of the timetable for implementation, we don’t know for sure whether the Renters (Reform) Bill will make the statue book before the general election, which is currently expected to be in October or November.
Even if it does, implementation of parts of the Bill such as the scrapping of Section 21 will be delayed.
Commenting on next steps, Sean Hooker, Head of Redress at the Property Redress Scheme, which like Total Landlord is powered by Total Property, said:
It is still not certain whether the Bill will be passed. However, we have clear intent that this is now a government priority and they will do everything to get it through in some shape or form.
In this video, Sean summarises the key changes to the Bill and what happens next.
Responding to coverage of the Renters (Reform) Bill in the press following the third reading, the DLUHC stated that the Bill’s original measures continue in the amended version. The DLUHC maintains that the Bill will:
Stop landlords having blanket bans on renting to those with children or who are on benefits
Apply and enforce the Decent Homes Standard to the private rented sector for the first time, so that everyone has a safe and decent home
For the first time give tenants a legal right to ask to have their much-loved pets in their home
Give landlords strengthened grounds for possession if a tenant is in rent arrears or they want to sell their property – “we are investing in the county courts so that landlords can benefit from a modern, efficient possession system”
Mean that landlords are able to act more quickly to evict tenants who make others’ lives miserable through anti-social behaviour
Help resolve disputes between landlords and tenants more quickly, with a new private rented sector Landlord Ombudsman
The process of implementation is confusing following the amendments, so we recommend reading this detailed blog, ‘When exactly will Section 21 be abolished?’ by leading housing lawyer and Partner at JMW Solicitors, David Smith, who specialises in property rights.
Below is an overview of the key amendments that were added to the Renters (Reform) Bill by the House of Commons at the report stage on 24 April 2024. We are grateful to self-managing landlord and lawyer Suzanne Smith, aka ‘The Independent Landlord’, for her detailed summary of the amendments in her blog post ‘The latest news on the Renters Reform Bill’, which we found to be very informative and have drawn on in our overview.
The scrapping of Section 21 ‘no fault’ eviction notices has been central to the legislation since the Bill was first introduced.
This aspect of the Bill has dominated the press coverage, prompting the following statement from the Government:
Some coverage has inaccurately suggested we are watering down our commitments on abolishing Section 21 notices – or no-fault evictions. Abolishing Section 21 notices is a manifesto commitment and we have been very clear that we will end these no-fault evictions as soon as possible. We have always said that we will give six months’ notice before ending section 21 tenancies to give the sector some time to implement these changes. And we have now today committed to making sure the county court system had time to adjust to the new possession processes, with an assessment of the county courts to ensure they are ready for these changes.
So while the scrapping of ‘no-fault’ evictions has been retained, there is no definitive time frame.
The abolition of Section 21 won’t happen until court reform has taken place, despite Labour’s objections and contrary to previous assurances that this would happen before the next election.
Paul Shamplina, Founder of Landlord Action, which like Total Landlord is powered by Total Property, is in agreement that court reforms are necessary to make sure the system can effectively handle the increase in Section 8 proceedings that will result from the abolition of Section 21.
But he feels a clear commitment to when these reforms will be implemented is essential to provide both landlords and tenants with the certainty and confidence they need to navigate the evolving rental landscape.
A transparent roadmap outlining the steps and timeline for court reforms would provide much-needed clarity to all parties involved, allowing landlords to plan accordingly and making sure all parties have access to fair and efficient legal recourse.In essence, while I agree that court reforms are necessary to accommodate the almost certain increase in Section 8 proceedings - approximately another 30,000 hearings a year - a clear commitment to when these reforms will be implemented is essential to provide landlords and tenants alike with the certainty and confidence they need to navigate the evolving rental market landscape.
Paul highlights that the uncertainty surrounding the future of Section 21 has already led many landlords to sell their properties.
This trend ultimately impacts tenants by shrinking the pool of available rental properties, leading to increased competition and potentially higher rents.
In this context, a clear commitment to timely court reforms is not only crucial for landlords' peace of mind but also for maintaining a healthy rental market that serves the needs of both landlords and tenants.
Here, Paul Shamplina provides an update on the Renters (Reform) Bill and the delayed abolition of Section 21.
Find out more about what’s happening to evictions and Section 21.
A key amendment to the Bill will require tenants to give two months’ notice to leave a rental property, but only after they have been there for four months, effectively creating a minimum six month tenancy by default, as is already the case with most ASTs - the average tenancy currently lasts between four and four and a half years.
This amendment is a significant change to the previous draft of the Bill, which abolished fixed term tenancies, allowing tenants to serve a notice to quit at any time from day one of the tenancy, potentially turning long term tenancies into short term lets.
Commenting on this amendment, Brendan Geraghty, CEO of The Association for Rental Living (ARL), the representative body for rental living sector in the UK, said
From a landlord’s perspective it is very important that we have an effective six month assured tenancy as effectively tabled in the amendments at this stage. Without this we would likely see an exodus in investment in rental accommodation which would exacerbate the already evident housing crisis.
An amendment was suggested that landlords and tenants could mutually agree to enter into a fixed term tenancy on an individual basis.
This was not accepted for debate at the third reading in the Commons, but may come back at the next stage in the House of Lords.
Responding to this, Propertymark said:
We have long argued that a fixed term allows security of tenure for the tenant and a guarantee of rent payments for the landlord. For tenants with low income or poor credit history, the fixed term allows a guarantor to be confident about the length of time they are signing up to support them. The complete removal of this option is likely to impact more vulnerable tenants the most.
In addition, exemptions may be considered such as the death of a tenant, domestic abuse or significant hazards in the property.
Find out more about how rental tenancies are changing.
The original Bill, which proposed to abolish Assured Shorthold Tenancies (ASTs) and introduce a blanket two-month notice period for tenants, was heavily criticised for the impact it would have on landlords of student properties.
Currently, they can issue tenancy agreements for a 12-month fixed term, to make sure the property remains tenanted for the whole calendar year, not just the academic year.
An amendment to the Bill now means that if it's made clear at the start of a tenancy that all residents of a property are students, landlords will be able to ‘evict’ tenants in line with the academic year.
In her blog post, The latest news on the Renters Reform Bill, Suzanne Smith explains the key changes to Ground 4A:
“The existing draft of the Bill includes a specific Ground for Possession for HMO students. A new government amendment removes the requirement in the new ground for possession of a student house for the house to be an HMO. It is also no longer necessary for the students to be joint tenants.”
This amendment would mean that the ground for possession for student properties could also be used for properties occupied by just one or two students, which would not otherwise be considered as HMOs, so long as they meet existing requirements. In her blog, Suzanne explains that these stay the same, as follows:
The tenants must be full-time students, or the landlord needs to have reasonable grounds to believe they would become a full-time student during the tenancy
The landlord must give at least two months’ notice, with the notice to expire between 1 June and 30 September
The landlord must intend to let the property to full-time students or those who the landlord believes will become full-time students during the tenancy
For students in England and Wales, the student must be studying a full time higher education course
An amendment concerning the ‘rent-to-rent’ sector also made it through. MPs agreed that the Housing Act 2004 would be altered so that ‘superior’ landlords as well as rent-to-rent companies (the ‘immediate’ landlord) are both covered when served with improvement notices and could be liable for rent repayment orders (RROs).
This is a major shift in policy, expanding the range of offences for which landlords can be held accountable.
Here, Paul Shamplina provides an update on the changes to RROs following the third reading of the Bill.
See our ultimate guide to rent repayment orders for more information on RROs.
During the debate, the minister also explained the distinction between the role of selective licensing and the new property portal, committing to a review and looking to reduce burdens on landlords.
He said:
The portal will be a resource for local authorities and to help landlords understand their legal obligations, while selective licensing gives councils powers to license properties to address issues such as poor housing and crime. There will be overlap with data. We don’t want to see selective licensing abolished but want to ensure the processes are streamlined – that’s why we’re committing to a review of selective licensing and HMOs.
The minister also committed to aligning the ombudsman with the property Portal, to avoid landlords having to input their details more than once.
In this brief video, Paul Shamplina provides a little more information on the Property Portal.
See Hansard for the full Renters (Reform) Bill debate of 24 April 2024, and subscribe to LandlordZONE for regular updates and breaking news on the Bill and other private rented sector news and comment. We also recommend visiting the Independent Landlord Renters Reform Bill resources page, which Suzanne updates regularly.
The Bill now continues its journey to the House of Lords, where Labour intends to press for some of the amendments they tabled in the Commons which were rejected by the Government. These include:
Extending Awaabs law, which will force social landlords to fix damp and mould within strict time limits, to the private rented sector
Prohibiting bidding wars for rental properties
Increasing the minimum notice period from two to four months for no-fault possession grounds
Removing ground 8a for repeated rent arrears
We will continue to keep you updated. Read on to find out what happened at the second reading in October 2023, and for more background on the Renters (Reform) Bill and its journey so far.
Note: this section was updated following the second reading of the Bill
After a significant delay, the second reading of the Renters (Reform) Bill), which was introduced to Parliament on 17 May 2023, took place on Monday 23 October 2023.
In a statement following the second reading, the NRLA said:
It is likely that we will witness significant alterations to the Bill during Committee Stage. The NRLA will provide evidence to ensure that changes proposed do not undermine landlord confidence further and that the Bill as amended supports responsible landlords.
Introducing the second reading of his Bill in his statement to the House, the Secretary of State, Michael Gove, reiterated the Government's commitment to reform the private rented sector and the requirement to balance the needs of tenants and landlords.
A few points stood out from the second reading which made it clear that there would be a lot of changes to the Bill during this next stage. Here is a summary of the changes that were anticipated.
Michael Gove acknowledged issues that would affect the student market with the original draft of the Bill and committed to proposing a new ground for possession for student landlords.
The current proposal to abolish Assured Shorthold Tenancies (ASTs) and introduce blanket two-month notice periods for tenants is a sticking point for landlords of student properties, who can currently issue tenancy agreements for a 12-month fixed term, to make sure the property remains tenanted for the whole calendar year, not just the academic year.
A proposed ban on fixed-term tenancies could penalise students amid an already heightened rental crisis in many cities, so it is reassuring that this proposal will be reviewed.
Gove also confirmed the need for improvements to the courts before Section 21 is abolished.
However, he emphasised that the Government remains committed to the removal of Section 21, while strengthening provisions under Section 8.
So, although it has been widely reported that the abolition of Section 21 is on hold, it is not yet clear how improvements will be measured or what the timing might be.
What’s more, if Labour win the election, they could prioritise the abolition of Section 21 if the current government has not made any changes before the end of its term.
The Government confirmed its commitment to the Decent Homes Standard, which was a glaring omission from the Bill, and something the Shadow Housing Secretary at the time, Angela Rayner MP, called for during the second reading.
The Government also committed to introducing the Property Portal and the Property Ombudsman, the latter of which (potentially along with the relevant local council), would be responsible for making sure landlords do not discriminate against tenants with children or those who are in receipt of benefits.
Since the Tenant Fees Act 2019 came into force, with its cap on tenancy deposits of five weeks’ rent and a ban on tenant fees, many landlords in England have been put off accepting tenants with pets, as they have been worried about covering costs of any damage caused.
The proposal in the Bill that tenants would have the right to request a pet and should be able to challenge a landlord’s decision to withhold consent for having a pet, had therefore worried some landlords.
But the Government confirmed that the Act will be amended to allow for landlords to charge tenants for the cost of obtaining pet insurance.
In addition, tenants will not have an automatic right to keep a pet in the property if the landlord initially refuses, as some had feared, unless ruled that the landlord has acted unreasonably.
Labour has previously made it clear that it will push for additional measures not currently included in the existing Bill, such as the expansion of rent repayment orders, amending possession grounds to protect tenants against ‘no fault’ evictions, and putting a stop to blanket bans on landlords accepting tenants with children or tenants who are in receipt of benefits.
Read on for more background to the current proposals in the Renters (Reform) Bill.
Note: this section was published following the introduction of the Bill to Parliament on 17 May 2023
For the past four years the Government has been promising a radical set of reforms for the private rented sector which, until now, were just proposals.
The measures within the newly introduced Renters (Reform) Bill are now out and could significantly alter the way landlords and letting agents in England operate rented homes.
The Renters (Reform) Bill, which was introduced to Parliament on 17 May 2023, represents perhaps the biggest shake-up to the private rented sector for over 30 years.
The Bill sets out the Government’s plans to ‘redress the balance’ between landlords and tenants by fundamentally reforming the private rented sector and levelling up housing quality.
Referring to the Bill on the day of its launch, Michael Gove said:
Our new laws introduced to Parliament today will support the vast majority of responsible landlords who provide quality homes to their tenants, while delivering our manifesto commitment to abolish Section 21 ‘no fault’ evictions.
The changes being swept in by the Renters (Reform) Bill should not be under-estimated.
There is a way to go before the Bill becomes law. And it is likely that some of the measures within the Bill will be diluted or subject to amendments during its passage through Parliament, as noted in our updates earlier in this chapter, following the second reading on 23 October 2023 and the third reading on 24 April 2024. So it will be a while before it makes a difference to tenants and landlords.
But it will nevertheless impact how evictions, tenancies, property standards, redress, property marketing and general admin operate for millions of landlords, agents and tenants.
To hear the experts’ initial verdict on whether the Renters (Reform) Bill will deliver what tenants need, listen to this bonus episode of The Property Cast with Sean Hooker, Head of Redress at the Property Redress Scheme, and leading property expert, Kate Faulkner.
To find out what elements of the original proposals landlords need to be concerned about and what’s really not going to make much difference in practice, read our article, 'Renters (Reform) Bill: should landlords be concerned?'
The Bill, once it gains royal assent from the King, has been much anticipated and hotly debated after the initial Fairer private rented sector white paper was published in 2022 (after the reforms were first revealed and consulted upon in April 2019).
As suspected, the proposals do not contain any huge surprises and the direction of travel is broadly where most informed commentators believed it was going. Yes, there were some glaring omissions, for example there is absolutely no mention of Decent Home Standards, however I have been reassured that this will be introduced, but how and when is to be decided. There is a huge amount of work to do, and I hope and anticipate that the Government will press on with these plans as soon as possible after this becomes law and we can get on with the job!
We will keep you updated as the details emerge and we encourage landlords to subscribe to LandlordZONE to make sure you’re up to speed with the breaking news.
