What Now For The Renters Reform Bill? (As Committee Stage ends)

The Renters Reform Bill was to have been a cornerstone of change in the rental market. It initially promised radical reform to rental legislation to make the system fairer for both landlords and tenants. However various amendments, as well as resistance to some of its key measures, puts a question mark over what we will actually see pass as legislation and what that might mean for landlords and tenants. As the Committee Stage ends, we look at what happens next for the Renters (Reform) Bill and what risks a looming General Election could have on it passing into law.

What the Renters Reform Bill promised

The Renters Reform Bill was proposed to improve the rental system for both the 11 million renters and 2.3 million landlords in England. It followed a five-year consultation period with groups representing both sides.

It included the abolition of section 21, no-fault evictions and fixed term assured tenancies and assured shorthold tenancies, instead moving to periodic tenancies to help to improve the security of tenancy for those renting properties.

It also looked to deliver more comprehensive possession grounds for landlords looking to recover their property because of a breach in the tenancy agreement or because they want to change its use, such as if they want to sell, or if the tenant is behaving in an anti-social manner or not paying rent.

Other key features in the bill included a fairer system of rent appeals, a new Private Rented Sector Ombudsman and a Privately Rented Property Portal, designed to help landlords better understand legal obligations and prove their compliance.

Another proposal gives tenants the right to request a pet in the property and gives landlords less of an opportunity to say no, although they can require pet insurance to cover potential damage.

What stage is the Renters Reform Bill at now?

The 2022 Queen’s Speech had originally committed to the bill being passed in 2022-23 but changes in government meant that the Renters Reform Bill wasn’t introduced to Parliament until 17 May 2023, following the King’s Coronation. Its second reading took place on 23 October in the House of Commons. It opened for its committee stage on 14 November and completed that stage two weeks later with amendments made.

The bill is now in the Report stage, during which amendments and new clauses will be debated further. It will then go for a third reading in the House of Commons before repeating the same process in the House of Lords. After both houses have agreed on the final version the bill then receives Royal Assent, at which point it will become an act of Parliament, the Renters (Reform) Act.

However, this is still a lengthy process and Royal Assent is possible in spring 2024 at the earliest. It would then take at least another six months (October 2024) to come into force for new tenancies and 18 months after Royal Assent for existing tenancies. The latter date was also when the section 21 changes were to have been implemented. Government will be wanting to accelerate the process ahead of a general election since rental reform has been a key strategy of the Conservatives and not getting the bill through before the election could be seen as a failure.

What’s changed?

The early debates have already seen one of its biggest changes, the proposed abolishment of section 21, which has been put on ice until improvements have been made to a justice system that would support this process better. No timeline for when this might happen has been given.

What’s next?

The bill continues to attract debate, the latest objections including those from Propertymark which wants to see several changes. There are also warnings from the All-Party Parliamentary Group of the Private Rented Sector that more resources will be needed to support enforcement. For now, however, it’s a wait-and-see game as to how landlords and tenants will be impacted and when the Renters Reform Bill will finally come into force.

We Can Help

At Progressive Lets we are experts in the rental market in the Peterborough area and help landlords find and manage properties within a 50-mile radius. We work with landlords of all sizes, including those who are just starting out and who need advice on compliance issues or who want us to manage properties on their behalf. Get in touch to find out more.