A government white paper has recently been published, ‘A fairer private rented section’, setting out a range of proposals to reform the private rental sector through the ‘Renters Reform Bill’.
The white paper sets out a 12-point action plan, which aims to deliver “a fairer, more secure, higher quality private rented sector.” Amongst the plans is the intention to abolish section 21 evictions, which currently allows private landlords to repossess their properties from assured shorthold tenants without having to establish fault on the part of the tenant, commonly referred to as ‘no-fault’ evictions. The lack of having to show fault and the relatively short notice required has been criticised as providing little security for tenants, with potential knock-on effects on their mental health and wellbeing and preventing them from future planning.
The new ‘Renters Reform Bill’ would introduce more security for tenants, with landlords having to show a valid ground for possession. On the other side of the coin, the grounds for possession will be reformed, allowing landlords to gain possession of their properties when necessary. Existing grounds for possession around rent arrears and anti-social behaviour will be amended to strengthen landlords’ rights, and new grounds will be created to allow landlords to sell or move close family members into their properties.
The reforms set out in the June 2022 white paper will require legislation to be passed. The current roadmap would see the introduction of the Bill in the 2022-23 parliamentary session.
In addition to the above changes, the response to the government’s consultation on ‘the case for a housing court’ outlines plans to improve the efficiency and speed of court processes for possession cases.
The white paper has been described as “a game-changer” for private renters, whilst bodies representing landlords have expressed concerns that the reforms go too far in the favour of tenants.
There are also concerns that the already clogged-up court system will struggle to cope if every eviction requires a court hearing, something that is not usually required under the current ‘no fault’ regime. Despite the proposed strengthened grounds for evictions, it could take several months or longer for landlords to follow the new process and recover possession of their property. In the meantime, they could be racking up rental revenue losses into the thousands.
Landlords will no doubt have a keen eye on the new Prime Minister and any announcements on rental reforms to be made for the 2022-23 parliamentary session.
The Dispute Resolution & Litigation Team at O’Donnell Solicitors frequently advises both landlords and tenants. For advice on any property-related dispute, please contact Richard Dobson-Mason on 01457 761 320 or by email to richard@odonnellsolicitors.co.uk.
