Seven important changes rental reforms will bring for tenants
Millions of tenants across the UK are preparing for new protections against unfair evictions and unfair rent increases.
The changes come as part of the government’s major reforms under the Tenants’ Rights Act.
They aim to change the balance of power between landlords and tenants to make renting fairer, more affordable and to improve standards.
But there are warnings that the reforms could increase the burden of renting property, leading to landlords withdrawing from the industry and ultimately rents rising due to reduced supply.
Ministers will outline how the reforms will be rolled out in the coming weeks, but here’s what the government’s rent reforms mean for tenants.
The end of perfect evacuations
Previously, landlords could evict tenants without cause, known as a ‘no fault’ eviction, by simply serving a section 21 notice and giving the tenant two months to leave.
This has created uncertainty for tenants, but the new laws will remove section 21 evictions and landlords will have to provide a valid reason through the courts to evict a tenant, for example for unpaid rent or anti-social behaviour.
Sarah Elliott, chief executive of housing charity Shelter, said: “Once introduced, 11 million renters in England will finally be spared the massive injustice of no-fault evictions, which have left thousands homeless.”
More flexible tenancies
Tenants will have more flexibility if they want or need to leave a property, as leases will no longer be a fixed term.
Fixed tenancies will be replaced with permanent tenants that renew every month, and landlords will only be able to change the rent once a year.
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Nye Jones, campaign manager at Generation Rent, said: “This change gives tenants much more flexibility, meaning you can leave the property at any time with two months’ notice while still having new eviction protections.”
homeowner regulation
The legislation aims to make landlords more professional and responsible.
A landlord database will be created so tenants can access information about who they are renting the property from.
There will also be a new Private Rented Sector Landlord Ombudsman to consider tenants’ complaints about their landlords.
Local authorities will be given greater powers to investigate the situation of rental properties and poor landlords.
Councils will also be given greater power to issue rent repayment orders, ordering landlords to repay rent if they breach laws such as harassment or fail to comply with an improvement order on a property.
pet powers
Major change in tenancy reforms gives tenants greater rights to request pets in their properties.
Under the new law, landlords must consider the request and cannot unreasonably refuse.
Owen Sharp, chief executive of the Dogs Trust, said: “These new pet-friendly tenant rights mean the benefits of pet ownership are no longer exclusive to landlords, something we have been campaigning for for many years.
“This is a game-changer for pet-loving tenants.”
Minimum household standards
The law aims to improve the standards of rental properties so that tenants can live in better conditions.
Homes must comply with health and safety regulations, plus kitchens must be under 20 years old and bathrooms under 30 years old.
Additionally, under the Awaab Act for the sector, landlords in the private rented sector must take action to make homes that present serious hazards safe.
no discrimination
Previously, landlords and rental agencies could exclude certain types of tenants.
Past property listings may have stated that there were no claimants or children.
But the new law makes it illegal for landlords and agents to discriminate against prospective tenants.
Power over rent is increasing
Tenants previously had little control over the rent they paid, and a lack of supply and high levels of demand often meant that prices could be high, well outpacing inflation.
But tenants will benefit from new protections that put some limits on how high rents can be.
Rent bidding wars will be banned, so landlords and agents will be required to publish a statement demanding rent for their property, and it will be illegal to accept offers made above that rate.
Once a property is rented, the landlord will only be able to increase the rent once a year, and above-market increases can be appealed through the new Ombudsman.
Will rents increase or decrease?
The government and campaigners hope the changes will make renting more affordable by limiting how much rents can rise.
But homeowners have faced restrictions on mortgage relief and rising stamp duty costs in recent years; So there are fears that the latest changes could lead to some selling off, which could mean tenants paying more as supply dwindles.
Landlords requested at least six months to prepare for the changes.
Ben Beadle, chief executive of the National Residential Landlords Association (NRLA), said: “The Government must also recognize the vital importance of a thriving private rented sector, not only to meet tenant demand but also to the national economy.
“It is crucial that the government’s reforms do not worsen the supply crisis by discouraging long-term investment in rental homes, which many people rely on.”
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