Renters (Reform) Bill 2023

The Renters (Reform) Bill of 2023 was introduced in Parliament on 17th May. This bill is anticipated to bring significant changes to the residential landlord and tenant sector, aiming to provide greater protection for tenants and establish a more balanced relationship between tenants and landlords.

One prominent change proposed by the bill is the scrapping of Section 21 "no-fault" evictions, which allow landlords to evict tenants without a reason. 

The main proposals in the bill include the following:- 

- The removal of Section 21 notices will require landlords to have valid reasons that comply with Section 8 legislation in order to evict tenants including selling their properties or moving back in; 

- The new tenancies created under the bill will no longer be Assured Shorthold Tenancies (ASTs). Future tenancies, once the legislation is implemented, will be periodic tenancies without fixed terms, which should provide more security for tenants.

- The tenants would also have the legal right to request a pet on the property subject to an additional premium payment or insurance to cover any pet damage. 

-- Rent increases would be limited to one per year and landlords would need to provide two-months' notice as opposed to the current requirement of one month.

- However, it should become easier for landlords to evict anti-social tenants whilst it will be illegal to refuse a tenancy to those with children on benefits. 

- Disputes between landlords and tenants can be referred to an Ombudsman rather than resolving disputes by courts which can be more time consuming and costly. 

- The landlords will need to ensure that the properties are in a satisfactory condition. 

The bill has received mixed reactions. According to critics, the measures may unfairly impact landlords, potentially leading to increased sales and evictions before the proposed changes become law. At the same time, supporters argue that these protections are long overdue and necessary, particularly as renters face financial challenges. 

It's important to note that the bill is still undergoing the formal parliamentary procedure and therefore nothing has been set in stone just yet and not expected until at least 2024. Until such time, things will continue to run in line with the current legislative framework.