The Bill published by Parliament on 17 May 2023 makes provision changing the law about rented homes, including abolishing fixed term assured tenancies and assured shorthold tenancies and imposing obligations on landlords and others in relation to rented homes.

Fundamental and/or interesting changes introduced include:

• All tenancies will be periodic, with rental periods not to exceed 28 days. Rent must be paid monthly; thus landlords are prevented from taking large upfront payments covering extended rental periods. There is no minimum tenancy period and tenants can terminate their tenancy on providing two months’ notice.

• No fault evictions pursuant to section 21 of the Housing Act 1988 are abolished.

• The present grounds on which possession may be sought under Schedule 2 to the Housing Act 1988 are amended and expanded, to include new grounds for eviction based on: (1) repeated rent arrears; (2) possession by a superior landlord when the superior lease ends and (3) where a landlord intends to sell the property (pre-existing but expanded).

         Amendments also touch on the tenancy deposit rules.

• There is a right to request permission to keep a pet in a rented property and a landlord must not unreasonably refuse the same. Provision is made for pet insurance to cover any damage to the rented home.

• A landlord redress scheme is introduced which provides for complaints made, by or on behalf of a prospective, current or former residential tenant, against a member of the scheme to be independently investigated and determined by an independent individual. The Secretary of State may introduce separate regulations to make residential landlord’s members of the scheme and impose sanctions - in the form of hefty fines - if they fail to join, when required to do so.

• Provision is also made for a database of residential landlords and dwellings subject to residential tenancies and for information regarding those landlords who are subject to banning orders; financial penalties and/or have convictions.

Although the reforms on their face appear to weigh in favour of tenants, providing them with greater security to remain in their homes by abolishing section 21 no fault evictions, the existing no fault grounds for eviction pursuant to Schedule 2 of the Housing Act 1988 have nonetheless been expanded, such that landlords are not wholly prejudiced by the changes at the end of the day.

Further, unlike the stringent requirements attached to relying on section 21 notices to evict tenants, such as provision of up-to-date gas safety certificates, these are not provided for so far as section 8 notices are concerned (namely relying on the expanded and amended grounds in Schedule 2 to the Housing Act 1988). This is an unfortunate omission which could have provided greater protection to tenants.

Practically, section 21 evictions were always the quicker option for landlords seeking to obtain possession of their properties – if all paperwork was in order – as they could be accelerated and could not be stymied by any disrepair counterclaim. With the abolition of the same and despite the expansion of the Schedule 2 grounds, it is anticipated that the proposed reforms may deter landlords entering the rental market and could even stimulate an exodus. With the ensuing decrease in supply and increase in demand for rented accommodation this would only result in market rents increasing and ultimately, adversely impacting on tenants.

Rent caps were not introduced in the Bill, although contractual rent review clauses were disallowed in favour of the present statutory procedure. Perhaps a further oversight which may be considered before the Bill is finalised and/or passed into law.

LARA HICKS © 2023

BARRISTER

33 BEDFORD ROW

NOTICE: This article is provided free of charge for information purposes only; it does not constitute legal advice and should not be relied on as such. No responsibility for the accuracy and/or correctness of the information and commentary set out in the article, or for any consequences of relying on it, is assumed or accepted by the author, any member of Chambers or by Chambers as a whole. No attempt has been made to provide an exhaustive review/account of the law in this area.