The Renters (Reform) Bill, introduced on 17 May 2023, is now a year old and progressing through Parliament. Here’s what agents need to know to be prepared.

Following the government’s 2022 White Paper, “A Fairer Private Rented Sector,” the Renters (Reform) Bill was introduced on 17 May 2023, signaling significant changes for the private rental sector.

The bill has just passed its second reading in the House of Lords and is currently in committee stage, with no set date for becoming law. Letting agents should prepare now to avoid surprises when the bill is enacted.

1. How to Prepare for Section 21?

Section 21 has been a major focus for letting agents and landlords. With the House of Commons leaving it to the House of Lords to determine the court’s progress, understanding Section 21 is crucial.

Agents should familiarise themselves with Section 21 before the bill passes. The abolishment of Section 21 will significantly impact the private rental sector. Agents and landlords need to know how to evict tenants if the courts are reformed and understand the grounds for serving a Section 8 notice instead.

2. How to Prepare for Changes with Periodic Tenancies

The Renters (Reform) Bill proposes the elimination of fixed-term tenancies, necessitating a reevaluation of tenancy contracts.

While the new tenancy system won’t be implemented immediately after the bill passes, agents should understand its impact on agreements.

3. Renters (Reform) Bill Ready: Training

It is important that agents stay informed about the bill. With numerous amendments since its introduction, it’s vital for agents to be well-versed in the bill to benefit their business and landlords.

4. Renters (Reform) Bill Ready: The Decent Homes Standard

The Decent Homes Standard is already required for social landlords, but will soon apply to private landlords. Agents and landlords must understand and implement these new regulations to avoid penalties up to £30,000.

Understanding and meeting these standards, from up-to-date gas certificates to maintaining properties, is crucial.

5. Renters (Reform) Bill Ready: Pets in Lets

Traditionally, renting with pets has been challenging. The Renters (Reform) Bill will change this, making it easier for tenants with pets. It is essential that agents prepare for this change. With the end of ‘no pets’ policies (with some exceptions), agents must know how to handle the increase in pet-friendly tenancies.

The information in this post is valid to the best of our knowledge on the date of posting. It is advised that you seek independent advice based on your individual circumstances.

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