More work needed on Renters Reform

May saw the publication of the Renters (Reform) Bill, following years of speculation. NRLA Chief Executive Ben Beadle reflects on the contents of the Bill – and what happens next.

Following years of pledges, statements and speculation the Government has finally published its Renters (Reform) Bill.

The headlines include:

• Abolish Section 21
• Abolish fixed term tenancies
• Make it easier for landlords to recover their properties from anti-social tenants
• Introduce a new digital Property Portal
• Establish a new Ombudsman to provide quicker and cheaper resolutions to disputes
• Give tenants the legal right to request permission to keep a pet, a request the landlord can reasonably refuse.

We know from our research the loss of Section 21 is likely to have an impact on landlord confidence, but, in the wake of the announcement we now need to take stock of the proposals and consider where we can continue to campaign for positive change.

The Government has offered some reassurance as regards possessions, pledging the Bill will protect the ‘vast majority of responsible landlords, making it easier for them to recover properties from anti-social tenants, or where tenants wilfully do not pay rent’.

It has also pledged to speed up the court process by digitising proceedings, something the NRLA has campaigned for and welcomes, but plans we need to know more about, something that is vital if landlords are to have confidence to remain in the sector and continue to invest.

Loss of the fixed term

The loss of the fixed term, which will see virtually all tenancies be periodic from day one is another concern for us and you, our members.

We have warned for some time that the loss of the fixed term is set to cause chaos in the student market – where it is a lynchpin of a business model based on an academic year.

Purpose Built Student Accommodation (PBSA) has been granted an exemption from the changes, and, with the Bill still to progress through the Commons and the Lords, we are continuing our campaign work for this to be extended to the rest of the student market. Indeed, we are attending a ministerial roundtable on 8 June.

In Scotland, where similar rules have been introduced some universities have already declared housing emergencies, with students unable to take up much sought after university places as they have nowhere to live, something we can’t allow to happen here.

Introducing open-ended tenancies will actually make life more difficult for students, and our campaign has widespread backing from universities and other stakeholders. You can read about the campaign in more detail in the Bulletin here. 

It also threatens to turn the PRS into Air BnB lite – and it is why we must see a general moratorium on tenants giving notice in the early stages of the tenancy – except where the property is uninhabitable. This would mirror what has been suggested for landlords who cannot give a ‘no fault’ reason during the first four months.

What happens next?

While we welcome the Government’s pledge to ensure landlords can swiftly recover properties from anti-social tenants and those failing to pay their rent, more detail is needed if the Bill is going to work, and we are to avoid worsening the existing housing crisis in the private rented sector.

Ministers need to develop a proper plan to improve the speed at which the courts process legitimate possession claims and increase staffing in the court system for this to work.

The Bill is not yet a fait accompli, with a number of hurdles to clear before it becomes law, so there is still time for change. We will continue to work with stakeholders to continue out work to ensure the Bill is fair to landlords while allowing the Government to uphold its commitment to tenants.

How can I find out more?

The NRLA has developed a suite of resources to keep members up-to-date with the Bill and is hosting a series of exclusive member only webinars to provide insights into the key proposals. Visit: nrla.org.uk/renters-reform for everything from the history of the Bill, up-to-the-minute news on its passage through Parliament, frequently asked questions and exclusive member webinars.

We would also advise you to keep a close eye on our news site and social media channels where we will provide regular updates on all the latest developments.