The industry has seen much uncertainty in the past month, with a new Prime Minister and a mini budget with many measures since reversed. Speculation around whether section 21 would be abolished led both the previous Prime Minister and Secretary of State for Levelling Up to confirm that this and the Renters’ Reform Bill were still on the government’s agenda. Despite the change in government leadership, the appointment of Michael Gove back into the position of housing secretary suggests that these proposals, at this stage, remain unchanged.
We’ve shared a reminder of these reform proposals below – and please don’t hesitate to get in touch if you have any questions or concerns about how this may affect your property investment.
A breakdown of the Renters’ Reform Bill proposals
The Renters’ Reform Bill and the abolition of section 21 are still expected to be brought forward “in the course of this Parliament”.
Here’s a recap of the main proposals, outlined in the A Fairer Private Rented Sector white paper:
- Section 21 will be abolished, and section 8 will be strengthened, with amended and new grounds to help landlords regain possession of their properties in certain circumstances
- Periodic tenancies will become standard, with tenants needing to give two months’ notice if they wish to leave
- The notice period that landlords will need to give for rent increases will double, to two months
- A new housing standard will be applied to the private rented sector for the first time, under the Decent Homes Standard
- Tenants will get more rights to keep pets – but the Tenant Fees Act 2019 will be amended to include a form of pet insurance as a permitted payment, to help offer landlords more protection
- Landlords will need to sign up for a new private renters’ ombudsman, to help mediate and settle tenancy disputes
- Property details will need to be registered in a new property portal to help tenants understand how compliant their landlords are – but also to help keep landlords informed on any new compliance obligations
For more information about these changes, you can visit gov.uk, or, as previously mentioned, feel free to get in touch with any questions.
All the best,
The Revive Property Sales and Lettings Limited team