The Renters’ Reform Bill aims to help 11 million tenants benefit from 'safer, fairer and higher quality homes'.
Changes include a ban on no-fault evictions and improving the rights of tenants to have pets.
Here, we explain what the major reforms mean for landlords and tenants.
'Landmark reforms' for renters and landlords
The wide-reaching reforms have been described by the government as a 'once-in-a-generation overhaul' of housing law.
Levelling Up and Housing Secretary Michael Gove said: 'Too many renters are living in damp, unsafe, cold homes, powerless to put things right, and with the threat of sudden eviction hanging over them.
'This government is determined to tackle these injustices by offering a new deal to those living in the private rented sector; one with quality, affordability, and fairness at its heart.'
Find out more:What's in the Renters' Reform Bill?
The bill includes a host of reforms, including the following:
Ban on no-fault evictions
The backbone of the bill is a ban on landlords evicting tenants who have done nothing wrong.
A long-running issue has seen landlords use Section 21 of the Housing Act to break contracts in order to bring in new tenants paying higher rent.
The government says the changes will 'empower renters to challenge poor landlords without fear of losing their home'.
Find out more:Repossessions for missed rent or anti-social behaviour
It is set to be made easier to evict tenants for anti-social behaviour and those who repeatedly miss their rent payments.
The bill will 'broaden' the disruptive and harmful activities that can lead to eviction and make it quicker to evict a tenant acting anti-socially.
Notice periods will be reduced where tenants have been irresponsible – for example breaching their tenancy agreement or causing damage to the property.
New repossession grounds are also set to be introduced for landlords who wish to sell their property, or want to move themselves or family members into it.
Find out more:Tenants given more rights to keep pets
Under the bill, tenants will have the right to request to keep a pet in their rented property.
Landlords will be expected to consider all requests and won't be allowed to unreasonably refuse them. If they do so, the tenant will be able to challenge the decision.
Tenants with pets may be required to take out suitable insurance to protect the landlord's property from damage.
New ombudsman to resolve disputes
The government plans to create a new ombudsman responsible for enforcing the sweeping policy changes and resolving low-level disputes between tenants and landlords at a faster rate, without the need to go to court.
Registering to a property portal
It should enable landlords to understand their legal obligations and help tenants make better decisions when signing a new tenancy agreement.
Find out more:
What's set to come later on?
Further legislation is due to be added to the bill later down the line, including the following:
Better standard of homes
Legislation on making rented homes abide by the Decent Homes Standard is not part of the bill, but is expected to be brought forward soon.
The standard - which stipulates how properties must be free from serious health and safety hazards - only currently applies to the social housing sector.
Increased rights for families with children and those on benefits
The government hopes to make it illegal for landlords or letting agents to have blanket bans on renting to families with children or those in receipt of benefits.
Listings advertised as 'no DSS' - which prevent anyone on universal credit, housing benefit, disability benefits or tax credits from applying - are currently common. The government says everyone should have access to safe and secure housing, regardless of whether they are receiving benefits.
Households with dependent children make up 30% of the private rented sector, and 26% of those receive housing benefit to help with rent payments.
Greater enforcement powers
The government also plans to strengthen councils’ enforcement powers and introduce a new requirement for local authorities to report on enforcement activity. This is hoped to crack down on criminal landlords.
What's not included in the Renters' Reform Bill?
While the government plans to make substantial changes to renting rules, there are omissions from the white paper published last June:
A simpler tenancy structure
A bid to abolish fixed term contracts and replace them solely with rolling, periodic tenancies has seemingly been kicked into the long grass.
The introduction of a 'simpler system' was hoped to help both landlords and tenants 'better understand their rights and responsibilities'. However, the plans to make all tenancies periodic are not included in the bill.
Find out more:Rent review clause ban
Last year's white paper outlined plans to end the use of rent review clauses, however, the proposals have not been brought forward in the bill.
What happens next?
The bill will need to pass through parliament before becoming law.
With the government's proposals now revealed, it will start its journey through the House of Commons and House of Lords, before receiving Royal Assent which is when it formally passes into law.
This process will likely take months, so the reforms may not implemented until 2024.
source https://www.which.co.uk/news/article/renters-reform-bill-introduces-big-changes-for-tenants-and-landlords-a1EJe4G2iU0w