What's happening with the Renters Reform Bill?

The long-awaited Renters Reform Bill is to be watered down, with a ban on no-fault evictions getting put on hold indefinitely by the government.

Other law changes are still set to be part of the Bill, but with the pledged shake-up having rumbled on for years, both tenants and landlords continue to hold their breath.

Here, we look at what's happening with the Bill and how the recent U-turn on net-zero policies impacts landlords.

No-fault eviction ban put on hold

The government envisaged scrapping Section 12 of the Housing Act, which allows landlords to break tenants' contracts without reason. Fixed-term contracts would also be abolished in favour of rolling tenancies with no end date.

But Housing Secretary Michael Gove announced last week, that the government would be delaying the no-fault eviction ban without committing to a future timeline.

The move has split opinion, with landlords mostly welcoming the move, while rent campaigners and opposition parties have hit out at the decision.

'Courts must be improved'

The delay has been put down to the court system, which the government says is not yet fit for purpose as landlords will use the courts as a way to reclaim possession of their homes.

In a report, the government stated: ''We are working closely with the Ministry of Justice and HM Courts and Tribunal Service to drive forward improvements to the court possession process so that users have a modern, digital service that will align with the reforms to tenancy law.

'Implementation of the new system will not take place until we judge sufficient progress has been made to improve the courts. That means we will not proceed with the abolition of Section 21, until reforms to the justice system are in place.'

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What else is included in the Bill?

A ban on no-fault evictions is set to still be included in the long term, but it has been pushed further down the road. However, other aspects of the Bill could be implemented beforehand, including:

Rent increase regulation

Tenants fighting excessive increases not in line with market prices will be able to take the issue to a tribunal.

Increased powers to evict nuisance tenants

It is set to be made easier to evict tenants for anti-social behaviour and those who repeatedly miss their rent payments.

New repossession grounds are also due to be introduced for landlords who wish to sell their property, or want to move themselves or family members into it. 

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More rights to keep pets

Tenants will have the right to request to keep a pet in their rented property, and landlords will not be able to issue blanket bans on animals.

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. 

The government says a refusal could be reasonable if a pet is 'clearly too large for a small property' or if another tenant has a pet allergy. 

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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. 

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When will the Renters Reform Bill become law?

The Bill has been in the pipeline for four years, but was only published in May. It received its second reading in parliament on Monday 23 October, and passed without a vote due to the cross-party support.

It will now be carried over into the next Parliamentary session after the King’s Speech in November. Aspects of the Bill could become law next year, but there is no guarantee.

The abolition of no-fault evictions and fixed-term tenancies has been delayed indefinitely.

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Energy performance changes scrapped

Away from the Renters Reform Bill, the government recently made a U-turn on green policies for landlords.

Downing Street was expected to make big changes to Energy Performance Certificate (EPC) regulations - but the proposed policy was scrapped last month.

An EPC rating goes from A (most efficient) to G (least efficient) - with the score highlighting a property's energy efficiency.

From 2025, landlords were going to have to achieve an EPC rating of C for new lets. For existing tenancies, the deadline was primed to be 2028.

However,  Rishi Sunak confirmed last month that both deadlines will be scrapped and no landlord will be forced to improve their EPC rating.

The Prime Minister stressed that the costs of upgrading homes were huge and likely to be passed on as higher rents to tenants.

80% of landlords were ready for new EPC laws

The uncertainty over energy efficiency has been playing on the minds of landlords for years, with a number spending thousands of pounds to upgrade their portfolio.

However, research by Shawbrook Bank found that 80% of landlords were already prepared for the 2025 deadline before it was scrapped.

Overall, 16% said EPC regulations were a concern prior to being axed, while 29% said they would progress with their improvement plans regardless. 

While the rule changes have been thrown out by the Conservatives, they could potentially return should there be a change of government after next year's general election.

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source https://www.which.co.uk/news/article/whats-happening-with-the-renters-reform-bill-aIjzC7p1N8ae
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