The recently published Renters’ (Reform) Bill discloses the Government’s aim to eliminate “no-fault” evictions in England and bring in tougher rent controls.

The plans mark a significant overhaul of the private rental sector. Currently known as Section 21 evictions, these allow landlords to regain possession of their properties without providing a specific reason.

Housing Secretary Michael Gove has previously argued that this practice enables unscrupulous landlords to intimidate tenants into silence regarding disrepair issues.

In addition to the abolition of no-fault evictions, the Bill aims to establish a legal right for tenants to request permission to have pets in their homes.

Landlords will be obligated to consider these requests reasonably and refrain from unreasonably denying them.

The proposed measures will affect approximately 11 million tenants and two million landlords in England, according to the Department for Levelling Up, Housing and Communities (DLUHC).

Key measures introduced by the Bill include:

  • Elimination of no-fault evictions
  • Simplified eviction process for tenants displaying anti-social behaviour or repeatedly missing rent payments
  • Restriction of rent increases to once a year, with landlords required to provide two months’ notice
  • Mandatory consideration by landlords of all pet-related requests, with unreasonable refusals prohibited
  • Implementation of minimum housing standards in the private sector, ensuring accommodation is free from health and safety hazards and is well-maintained
  • Prohibition of blanket bans on benefit claimants or families with children
  • Introduction of an ombudsman overseeing all private landlords, equipped with the authority to enforce landlord apologies and award compensation up to £25,000
  • Establishment of an online property portal where landlords must demonstrate compliance with regulatory requirements

These upcoming changes, once enshrined in law, are likely to have a substantial impact on landlords and investors.

It is important that you understand the financial impact that these changes to the law may have on your plan, particularly your ability to set new rents throughout the year.

If you require further information on any matter relating to property management and investment, please speak to us.