Renters Reform Bill: Who are the winners and losers?

Renters Reform Bill brings biggest housing market changes for 25 years… but who are the real winners and losers?

  • Bill launched this week will halt no-fault evictions, among other big changes
  • It has provoked row with landlords who say buy-to-let will become unprofitable 
  • We look at the measures in detail, and ask how effective reforms will be 

The term ‘revolutionary’ is overused, but new Government proposals for tenants and landlords are exactly that — and they promise to change the housing market for ever.

With some 11 million renters and two million landlords in the UK, any upheaval is big news. But measures in the Renters (Reform) Bill launched this week, are the biggest changes unveiled for 25 years.

The plans have provoked a major row with landlords and some Conservative MPs say they risk forcing landlords to sell because buy-to-let will no longer be profitable. 

Tenant groups and other MPs, meanwhile, say the Bill — first pledged four years ago — is long overdue for those paying ever higher rent.

Here we look at what it all means.

Shake-up: Measures in the Renters (Reform) Bill launched this week, are the biggest changes unveiled for 25 years 

1: Halt ‘no fault’ evictions

Tenants can be evicted now for no obvious reason and some accuse landlords of using this power against renters who complain or want repairs done.

‘No fault’ evictions are to be banned but, in return, landlords will have stronger powers to remove tenants who are anti-social or fall behind with rent.

It could mean renters being given a two-week notice period for anti-social behaviour evictions, while behaviour ‘capable’ of ‘causing nuisance or annoyance’ could also trigger eviction.

Campaigning charity Shelter claims nearly 230,000 private renters have been served with a no-fault eviction notice since April 2019.

2: More pets in lets

Landlords must consider all requests by tenants to keep pets, and won’t be allowed to unreasonably refuse. If they do so, the tenant can challenge the decision.

If a pet is allowed, the renter may be asked to take out the appropriate insurance against damage to the home.

‘It could dramatically reduce the number of dogs and cats needlessly separated from their owners due to widespread restrictive pet policies,’ says Michael Webb, of Battersea, the animal rescue charity.

3: Watchdog with bite

A new ombudsman will be able to arbitrate on disputes between tenants and landlords over rent rises, pets or other issues. 

Consumer champion Martin Lewis, founder of Money Saving Expert, says: ‘We have long needed a statutory single private rental Ombudsman. 

Crucially it won’t be voluntary: all private landlords will be required to join and it will have legal authority to compel apologies, take remedial action and pay compensation.’

Dog day: Landlords must soon consider all requests by tenants to keep pets, and won¿t be allowed to unreasonably refuse. If they do so, the tenant can challenge the decision

Dog day: Landlords must soon consider all requests by tenants to keep pets, and won’t be allowed to unreasonably refuse. If they do so, the tenant can challenge the decision

4: Landlords’ register

This will be run by local councils, which can take action to ensure properties conform with appropriate standards of repair, are not over-crowded and have the right licences.

Landlords will be listed on a new property portal, which tenants can use for checks before they rent.

5: Improved standards

A strict Decent Homes Standard, currently applying to council and housing association properties, will be extended to the private rental sector, too.

Last year, the Government warned that the conditions of more than 500,000 private rented homes posed ‘an imminent risk to tenants’ health and safety’.

6: End to blanket bans

If the Bill becomes law, it will be illegal for landlords or letting agents to have blanket bans on renting to families with children or those in receipt of benefits.

The Government says households with dependent children make up 30 per cent of the private rented sector, and those receiving housing benefit to help with rent payments form 26 per cent.

7: Strong enforcement

Local councils will be forced by law to report how many landlords they take action against and how successful they have been. 

The Government is pledging a reformed courts process with cases against rogue landlords or anti-social tenants to be digitised to reduce delays.

How effective will reforms be? 

So far so good, but even though the Bill was only published on Wednesday, there are already worries about how effective these reforms will be and whether they may have unintended consequences.

First, there’s concern that there are no provisions for rent controls. Advocates point to data from Rightmove showing the average asking rent outside London has hit a record £1,190 per month and a whopping £2,500 within the capital.

But opponents of rent controls insist landlords have to cope with demands for improved standards and new energy efficiency targets — while facing higher mortgage payments following rate rises.

Second, TV property expert Phil Spencer says putting so much emphasis on councils policing the changes is a problem.

‘Leaving it all to local authorities means there is a complete lack of consistency for renters and landlords: consequently, we have a messy and disjointed private rental sector,’ he says.

Third, there’s concern over how long it may take for the changes to become law. The Bill is complex and is unlikely to become law until at least next year.

While that is going on, there’s evidence of landlords selling up. Estate agency Hamptons says 35,000 more properties were sold by landlords in 2022 than were bought by them — reducing the rental stock and risking still higher rents as demand outstrips supply.

The landlords who quit blame higher costs, more tax and stricter rules for turning buy-to-let from profitable to loss-making for many: the fear is that the Renters (Reform) Bill may lead to more landlords following suit, worsening a crisis the measures were designed to solve.

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