Critical changes proposed to the Renters (Reform) Bill
Following the publication of further amendments to the Renters (Reform) Bill, Senior Campaigns and Public Affairs Officer, Eleanor Bateman, takes a more detailed look at the changes to understand how they are likely to impact landlords, if accepted.
Ahead of the Renters (Reform) Bill’s progression to report stage (a date for which is still yet to be confirmed), a number of amendments to the bill have been proposed by MPs.
If these amendments are accepted, they could be beneficial for landlords (and tenants), but how exactly?
Improving certainty and security of tenure
One of the key amendments would restrict the point at which a tenant can serve notice. The Bill as drafted will eradicate fixed terms and enable a tenant to serve notice at any time, giving no certainty of a minimum term for landlords beyond the two-month notice period.
The NRLA has called for a moratorium period at the start of a tenancy, during which a tenant cannot serve notice to end a tenancy (provided the landlord is meeting all legal obligations).
Once the moratorium period has expired, a tenant could end a tenancy by giving two months’ notice whenever they wish. This would provide a landlord with a degree of confidence that a minimum tenancy term exists and reduce the risk of frequent re-letting costs.
The amendment takes forward the recommendations of the Levelling Up, Housing and Communities (LUHC) Committee, proposing an initial four-month period providing for an effective minimum six-month tenancy (the moratorium period plus two months’ notice).
Whilst this does not fully replicate the security provided by a fixed term, it does afford certainty that a tenancy will continue beyond what will otherwise be an effective minimum term of just two months.
Sustaining a supply of student housing
The student private rented sector is likely to be particularly affected by the reforms through the loss of fixed terms and Section 21, which have provided a solid foundation upon which to operate on cyclical basis.
Coupled with the moratorium on a tenant serving notice, the NRLA has campaigned forcefully for a ground for possession to ensure that student landlords can ensure homes are available at the start of the academic year for incoming tenants.
At committee stage, the Government introduced an amendment to enable student landlords to end tenancy for the purposes of re-letting to incoming students, but limited its application to student landlords of Houses in Multiple Occupation (HMOs).
A further amendment has now been proposed to broaden the ground’s application to landlords of one- and two-bedroom student properties (which do not fall under the HMO classification), to ensure that the entire student private rented sector can continue to function.
Preventing duplication of bureaucracy
A further amendment would see selective licensing abolished once the proposed Property Portal is up and running. The Government intends the Portal to be a ‘one-stop shop’ for landlords, enabling them to access guidance and demonstrate compliance.
The NRLA has questioned the need for selective licensing to continue alongside the Portal, given the Portal is set to contain details of landlords and their properties.
The proposed amendment would remove the ability of local authorities to designate areas for selective licensing, freeing landlords from any requirement and its associated costs.
Tackling anti-social behaviour
The NRLA continues to highlight the problems landlords face when dealing with anti-social behaviour and the limited powers and support they have with which to tackle it.
The Bill will modify the wording of ground 14 from “likely to” to “capable of” causing nuisance, which could make proving anti-social behaviour is taking place easier.
Another change to the Bill could mean that landlords can rely on evidence like text messages or emails from neighbours when seeking possession using the anti-social behaviour grounds. At the moment this ‘hearsay’ evidence does not have to be taken into account by the courts.
What happens now…
MPs will debate the suggested amendments at the Bill’s report stage, which is the last opportunity for them to influence it. You can find out more about report stage and how you can highlight the vital need for these amendments to your MP here: Write to your MP ahead of report stage.
For more detail on the Bill’s progression through parliament and what happens once it is passed to the House of Lords, have a look at our Renters (Reform) Bill tracker.
