The Renter’s (Reform) Bill
In one of the biggest shake-ups ever in the lettings industry, the new Rental (Reform) Bill has been published bringing in many substantial changes to the industry.
Here are the key points highlighting the changes being implemented.
ASSURED SHORTHOLD TENANCIES TO BE ABOLISHED
All tenancies will move to periodic tenancies.
This means tenancies will be rolling' with no end date. Tenants can end the tenancy with 2 months notice, and landlords can end the tenancy if they can provide evidence of valid grounds of possession.
SECTION 21 TO BE BANNED
This is to stop 'no-fault' evictions. Landlords can use the grounds of possessions as published on the gov.uk website.
Section 8 notices can be used, and the process will be similar to that of the current section 21 notice. Tenants will need to be served notice on the prescribed form and with the correct notice period. If a tenant does not leave at the end of the notice period, the landlord will need to go through the courts to get possession.
RENT INCREASES
Landlords can increase rent by completing a form from the gov.uk website (yet to be published), and serving it to the tenant. No other action is needed and the tenant must simply pay the new amount from the next rent period.
If the tenant wishes to appeal the new rental amount, they can dispute the rent increase to a first-tier tribunal if they think it's above market rate.
PROPERTY PORTAL
All landlords will be legally required to register themselves and their properties on a new, digital Property Portal, which will hold information about the property.
The goal is to increase transparency for tenants before they decide to rent a property by making certain information about the property public. Details of which information will be public is yet to be confirmed.
WHEN WILL THE REFORMS BE IMPLEMENTED?
The new system will come in to force in 2 stages. Six months notice will be given, and after this date, all new tenancies will become periodic tenancies.
All existing tenancies will move to the new system at the second stage. There will be at least a 12 month gap between the first and second stage.
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