The white paper was released on 16th June 2022 and lays out what the government plans to do to transform the private rented sector. Their aim is to deliver a fairer, more secure and higher quality private rented sector. The aim is to halve the number of non-decent rented homes by 2030 and require privately rented homes to meet a Decent Homes Standard for the first time.
So, what are some of the main proposals?
Abolishment of Section 21 notices
‘No fault’ Section 21 evictions that allow a landlord to terminate tenancies without reason will be banned. Landlords will only be able to regain possession of their property by serving a section 8 notice with a stated ground. The government intends to modify existing grounds and introduce new grounds to cover for the loss of section 21. Grounds likely to be added would include a ground for landlords who wish to sell their property or allow close family members to move in and a mandatory ground for repeated serious arrears where a tenant has been in at least two months’ rent arrears three times within the previous three years, regardless of the balance at hearing. Notice periods will be reviewed to ensure landlords and tenants are supported fairly.
All tenancies to become periodic
All tenants will be moved onto a single system of periodic tenancies which gives them greater flexibility to move more easily if their circumstances change or if their housing is poor quality
Rent Increases
Rent review clauses in tenancy agreements will be banned. Landlords will only be able to increase the rent for a tenancy once a year and by serving a formal Section 13 notice which will make the required notice for a rent increase two months instead of one. Tenants will still have the option to challenge a rent increase through the First Tier Tribunal
No ban for renting with pets
Tenants will be given the right to request a pet which the landlord cannot unreasonably refuse, subject to the obligations of any headlease restrictions. The Tenant Fees Act 2019 would be amended to include pet insurance as a permitted payment to give landlords greater comfort in accepting pets.
Discrimination against families with children and those on benefits
It will be illegal for landlords and agents to refuse to rent to families with children or those receiving benefits
New Ombudsman
A new ombudsman will be created to enable disputes between tenants and landlords to be settled quickly, at low cost and without going to court. The ombudsman will have powers to issue apologies, take remedial action and pay compensation.
Landlord portal
All landlords must register on a new portal to ensure tenants, landlords and local councils have the information they need. This will be enforced by local authorities and subject to consultation, will incorporate the Database of Rogue Landlords and Agents which will be made public
The above are just a few key proposals that the government are looking to put in into place. At the moment the paper is a long way off becoming a bill but if the reform is put into law it is likely to come into effect by the end of 2023 at the earliest. The government have said it will provide six months’ notice before the changes come into effect for new tenancies and 12 months before they apply to existing tenancies.
The full white paper with further information on the government’s 12-point plan can be found here
