_The latest Renters (Reform) Bill update

The Renters (Reform) Bill was introduced into Parliament in May 2023 and had its third reading in the House of Commons on 24th April 2024. A reminder of what’s in the Bill, along with the complete list of grounds for possession, including when a landlord wishes to sell, move back in or in instances of rent arrears, can be found here.

Over 200 amendments were tabled, many of the government’s amendments have now been accepted, and the Bill will begin its journey through the House of Lords.

What does the Bill look like now?

Tenant notice

The Bill originally allowed tenants to serve 2 months’ notice to end their tenancy from day one. A tenant can now only give 2 months’ notice once living in a property for at least 4 months, thereby creating a minimum term of 6 months.

Student ground for possession

The Bill previously only allowed landlords letting purpose built student accommodation to serve a Section 8 notice on a student tenant. Now, if a property is let to students in the Private Rented Sector, landlords will also be able to use this ground.

Review of courts

At the third reading, it was confirmed that a review will be carried out on the current court system. With the abolishing of Section 21, there will be an increase in pressure on the courts, which needs to be considered to ensure it is more effective for both landlords and tenants. This review would be completed before Section 21 can be abolished.

Landlord licensing

A dispatch box promise was made to review selective licensing and HMOs, given the Bill will introduce a Property Portal, with the aim of making both licensing and the Property Portal effective alongside each other.

Fixed term tenancies

Despite recommendations to allow landlords and tenants to be able to agree a fixed term tenancy between themselves, this has been overlooked.

What’s next for the Renters Reform Bill?

This is our understanding of the main points from the third reading. The Bill will now follow the same process through the House of Lords, although a date for this is yet to be set. There will likely be more changes along the way before it receives Royal Assent.

It’s worth noting that the Renters (Reform) Bill only applies to Assured Shorthold Tenancies (AST), a tenancy is an AST when:

• the tenant is an individual (not a company, charity or trust)

• the property is the tenant’s only or main (principal) home

• the landlord is not a resident landlord, i.e. doesn’t live in any part of the property

• the rent does not exceed £100,000 per year

How can we support you?

As your Partners in Property, we will continue to keep you updated as this progresses. If you have any queries, please contact Beverley Kennard, Partner, Head of Lettings Operations or Gary Hall, Partner, Head of Lettings.