The government says that under current legislation, some renters face "a precarious lack of security" especially in terms of Section 21 "no fault" evictions. Meanwhile, responsible landlords are facing issues by being "undercut by a minority of criminal landlords".
During the debates held so far, we’ve seen some concessions on issues that were giving landlords major concerns.
From a tenant's perspective, renters reform bills can be seen as crucial steps towards ensuring affordable, stable, and fair housing. Many believe that such legislation is necessary to protect tenants from unfair evictions, exorbitant rent increases, and substandard living conditions. They argue that everyone deserves safe and affordable housing, and renters reform bills help achieve this goal.
On the other hand, some landlords may have concerns about renters reform bills. They might worry that increased regulations and restrictions could limit their ability to manage their properties efficiently, adjust rents according to market conditions, or remove problem tenants. Some landlords argue that too much regulation can discourage investment in rental properties, leading to a decrease in the overall supply of rental housing.
In summary, opinions on renters reform bills can vary widely depending on one's perspective. It's a complex issue with valid points on both sides and finding a balanced approach that protects the interests of both tenants and landlords is crucial.
How will the Renters (Reform) Bill actually impact the private rented sector?
Right now, all the anecdotal evidence points to a rising number of landlords deciding to sell up. This, combined with a chronic lack of new rental homes being built, is creating a supply and demand issue that is driving up rental prices, creating despair for tenants seeking new homes, and resulting in market conditions which this Bill hasn’t been designed to fix.
The Government should not see this legislation as a job done. A healthy rental market requires empowered, protected tenants as well as fair-minded, incentivised landlords in order to function.
When will the Renters (Reform) Bill become law?
The Renters (Reform) Bill is one of the most significant pieces of legislation for private renters and landlords in the past 30 years. First introduced to parliament on 17 May 2023, the Bill is currently being debated in the House of Lords.
The Conservative Party has committed to passing the Renters (Reform) Bill into law before the date of the next General Election, which is widely expected to take place in the Autumn of 2024.
The Bill must pass through the House of Lords before achieving Royal Assent. This is when the King officially confirms that the bill will become law.
If and when the Renters (Reform) Bill does become law this year, this does not mean that all policies will come into effect on day one. In some cases, this will become law in stages.
For example, the transition to periodic tenancies will be applied for all new tenancies in stage '1', and all existing tenancies will transition on a set date, as part of stage '2'.
The exact timing of when the Ombudsman will come into force will likely be determined by future regulations set by the Secretary of State.
In addition, Section 21 will not be abolished until the courts have been reformed, the Government’s commitment to only abolish Section 21 once the courts are reformed should reassure worried landlords that Section 21 will remain in force for some time yet.
It's essential for landlords to stay informed about proposed renters reform bills, engage in public consultations or advocacy efforts, and adapt their business practices as needed to comply with new regulations.
Follow the Bill passage at the link bellow.
