Introduction
On 11th September 2024, the Renters’ Reform Bill (formally called the Renters’ Reform Bill under the Conservative government) was introduced to Parliament by the Government and given its second reading.
At Bramsdon and Childs, we specialise in acting for landlords in landlord and tenant disputes, including possession proceedings. In order to assist our clients, we have summarised some of the key changes relevant to possession proceedings.
Please bear in mind that the current Bill is likely to change before it is made law.
Key Changes
- Principally, the Bill proposes to abolish “no fault” evictions using the current section 21 process.
- It aims to simplify the tenancy structure, and all new assured tenancies will be periodic tenancies, with tenancy periods not exceeding one month. This means no more fixed terms, which has become the norm in recent years.
- A tenancy will only retain its assured shorthold status if a section 21 notice has already been served when the Act becomes law.
- A new Private Rented Sector Landlord Ombudsman aims to provide quick, fair, impartial and binding resolution for tenants’ complaints about their landlord.
- There will also be changes to standards, enforcement, and setting of rents.
Possession Grounds
The no fault eviction process will be abolished entirely, requiring that the landlord will need to prove a ground.
The possession grounds will be changed to try to strike a balance between security for tenants and allowing landlords to recover their property when it is reasonable to do so.
Key Changes to Possession Grounds:
- Rent Arrears: Will require three months rent arrears and a four week notice, an extension from the current two week notice for two months arrears.
- New “Landlord Circumstance” Ground:
- Allows possession if the property needs to be sold (Ground 1A)
- Allows possession if the landlord or their family needs to move in (Ground 1)
- These grounds cannot be used in the first 12 months of tenancy
- Requires four months’ notice
Non-fault grounds that already exist will also require a four month notice period, extended from the current two month notice period.
Banning “No Pets”
The Bill aims to give tenants the right to keep pets and landlords will need a good reason to refuse. This, in its current drafting, appears ripe to cause disputes about what a “good reason” will be.
Impact
The changes aim to give tenants more security but may well lead to an increase in disputes. Key considerations:
- Landlords will be unable to use the current no fault eviction process
- Likely to see stricter conditions in tenancy agreements
- More scope for disputes when trying to achieve an eviction
- Hope for streamlined court procedures similar to the current accelerated process
- Need to reduce strain on the system when all evictions require a “robust ground”