A wave of rental reform passing through Parliament: What does it mean for landlords and tenants?

Since the implementation of housing legislation over 35 years ago, residential landlords in England have been entitled to evict their tenants based on no fault by their tenant. Under the procedure, landlords can commence an eviction by giving two months' notice for their tenant to vacate. This has long prompted calls for legislative reform. Reform has, however, proven difficult to implement, not least given the vastness of a market involving 11 million renters and 2.3 million landlords.

Legislation Reform

In the King's Speech on 17 July 2024, the new government set out its priorities including, amongst other things, a wave of reform in the residential rental sector, including:

• Abolition of no-fault evictions;
• strengthening tenants' rights and protections;
• banning rental bidding wars;
• extending 'Awaab's Law' to private sector tenancies, requiring landlords to investigate and remedy reported health hazards within specified timeframes;
• strengthening the power of local councils to force rogue landlords out of the sector; and
• preventing landlords from discriminating against tenants who receive benefits or have children.

On 11 September 2024, the Renters' Rights Bill (Bill) was introduced to Parliament to implement these changes (and many more) about rented homes, including provision abolishing fixed term assured tenancies and assured shorthold tenancies, imposing obligations on landlords and others in relation to rented homes and temporary and supported accommodation.

Alternative Evictions Process

The abolition of no-fault evictions means that landlords wishing to regain possession their property will be required to use the existing fault-based procedure. This requires landlords to prove specific grounds, which range from rent arrears to tenant anti-social behaviour. The Bill proposes to amend current legislation to include relevant factors when termination is for anti-social behaviour. A landlord must prove its ground for repossession.

In practice, this often translates into higher legal costs and uncertainty to both parties, without any guarantee of obtaining a possession order when the case reaches court.

If you are a residential landlord or tenant and would like further advice on dealing with repossession, etc. under the new regime, or if you have any questions about how these legislative changes may affect you or your business, please do not hesitate to get in touch with our Real Estate Disputes Team or, your usual Brodies' contact.