The Minister for Levelling Up has confirmed that the Renters Reform Bill will soon have its third reading in the House of Commons. This is an attempt to reduce uncertainty in the private rented sector by delivering the bill as soon as possible.
The below improvements are to be brought forward at the upcoming Commons Report Stage:-
- Establishing a six-month minimum period for tenants when they take occupation of a property. The original proposal for the bill had allowed tenants to end a tenancy with two months’ notice at any point, as there would be no fixed term tenancies. Exemptions to the six-month minimum period will be considered, such as the death of a tenant, domestic abuse or significant hazards in the Property.
- Providing an assessment on the County Court possession system before abolishing Section 21 notices. The bill had originally proposed to abolish Section 21 notices once it became law, but the Lord Chancellor will now be required to publish an assessment on barriers to possession and the readiness of the Courts before abolishing Section 21 notices for existing tenancies.
- Expanding homelessness prevention duties. Currently, when a tenant is evicted using a Section 21 notice, the local authority owes them a homelessness prevention duty. So that renters are not left without the support they require to prevent them from being homeless when Section 21 is abolished, an amendment will be made to ensure that a homelessness prevention duty will be owed to all tenants served with a valid Section 8 notice.
- Undertaking a review of Local Authority licensing schemes. The original bill proposed to introduce a property portal for landlords that would hold required information about landlords and their properties, but landlords were concerned this would duplicate the existing licensing system. In light of this, a review of licensing will take place covering selective licensing and HMOs in order to reduce burdens on landlords.
- Broadening the ground for landlords to evict students after an academic year. The original proposal introduced a new mandatory possession ground allowing landlords to evict students living together in a HMO. This did not account for student households that do not meet the HMO definition. This ground will therefore be widened, ensuring it applies to any property let by students.
- Protecting the balance of long and short term lets. The original bill proposed to prevent landlords from marketing or re-letting a property for three months after they have used possession grounds to move into or sell their property. This will be amended to ensure landlords cannot turn properties into short term lets in this three-month period.
Please note that the above are only proposed amendments to the Renters Reform Bill. We shall have to wait for the bill to become law if the above are to be enacted. We will keep you updated on progress.
If you have any queries or would like to discuss any of your property needs please contact the management team on 01787 888694.
