RENTERS (REFORM) BILL 2023

Under the Renters (Reform) Bill, that was introduced to parliament last month, landlords will only be able to evict tenants in England under certain circumstances. This includes if they want to sell the property or a close family member to move in. If they do evict their tenants, landlords will not be able to re-let their property for three months. Breaching the new rules also carries a fine of up to £30,000.

The Local Government Association (LGA) has welcomed the changes but has said that the councils would struggle to police this property as it would be the councils that would be responsible for enforcement. Therefore, the councils would need more staff and funding to enforce the ban on no-fault evictions in England affectively, local authorities have warned. Darren Rodwell, the LGA’s housing spokesman has said that every council he is aware of has a shortage of environmental health officers and tenancy relation officers, who investigate potential offences related to private rented housing.

Further concerns have been raised regarding the lack of staff and funding. One of which includes Jo Smith, who is a private sector housing manager at Welwyn Hatfield Borough Council, she has said that councils are already stretched and did not have the recourses to enforce their current housing duties, even before they took on new enforcement responsibilities in the bill. Ms Smith is the only environmental health officer at her council responsible for housing, supported by a team of seven other staff.

The government has said that they would fully fund any additional costs for councils. A Department for Housing, Levelling Up and Communities spokesman said: "We will continue to support councils financially so they have the right resources to put tenants first, that includes fully funding any additional costs that may fall on councils as a result of our proposed reforms."

Disclaimer: the above is not meant to provide legal advice.

On the 1st of December 2022, the Renting Home (Wales) Act 2016 changed the way that landlords must rent their properties out. This included changes to the way contracts are provided, the way homes are maintained and how tenants communicate with their landlords. By May 31st, all tenancies in Wales will automatically be replaced with an occupation contract. All landlords must give their tenants a written statement of the converted contract by the deadline, this will replace the original tenancy agreement. You must receive a written statement by May the 31st outlining your rights and responsibilities that includes the agreed terms of your tenancy and the required contractual terms. The process of communication has to be included. If a landlord fails to issue the written statement by the deadline of May the 31st then the tenants may be entitled to damages/compensation and the landlord may also be unable to issue a notice of possession. Some of the required terms set out in the previous tenancy contract will need to be replaced. For example, your landlord may need to give a greater notice of a rent increase and the landlord must now give tenants six months’ notice to end the contract (subject to the start date of the original contract); there are grounds for serving less than 6 months’ notice (e.g. serious rent arrears when 14 days’ notice can be provided and the landlord must commence court proceedings within 6 months of service and further, the court will determine whether it is reasonable for the Court to grant such an order).   The Renting Home (Wales) Act 2016 has also changed the law in relation to smoke alarms, every landlord must ensure that there is hard wired smoke alarms on each floor of your home and every landlord must also ensure that an electrical safety inspection is done at least every 5 years and have a valid electrical condition report in place. Of course there is the standard legislation with regards gas safety certificates and the handling of any deposit.  Any breach of the above may result in the Landlord being unable to recover possession. There are also changes in respect of joint tenants, and changes in relation to tenants ability to ask for pets at the property. Notices now have a time scale by which an application for a possession order must be applied for, there is also restrictions on how many notices can be served and withdrawn.  There is more stress on a Landlord to make sure that notices are valid and the Landlord is compliant. The law is (in our view) complex and can be considered challenging for landlords, especially for landlords who are not professional landlords.  If a Landlord breaches any of the regulations, the outcome can be serious.  It is more important than ever to build a relationship with an expert property lawyer who you can go to for advice and assistance when and if you encounter issues, and also, to put you on the right footing. Newbold has 7 lawyers working in our Landlord team, they are update, commercially aware and can provide a free 10 minute consultation. (written by Elisse Rickets and Catherine Watkins May 2023). Blogs are not meant to provide legal advice and should not be relied upon as such; if you have an issue with a property you should seek legal advice from a qualified practitioner who can discuss your specific needs. Multiple Dwellings
  rent repayment orders   Landlords that rent to students normally offer a 12-month fixed term contract, one that matches their academic year. This ensures that their properties are not left empty outside of term time. However, the Renters Reform Bill has just been introduced to Parliament which plans to abolish fixed-term tenancies in England.  This bill also plans to scrap “no fault evictions”, this means that landlords will only be able to evict tenants under certain circumstances. For example, if a landlord is selling the property. This means that all fixed term tenancies will be replaced with a rolling tenancy which means there is no fixed end date and rent is paid monthly or weekly. This change also means that tenants will only need to give two months’ notice to leave a property. Some landlords have stressed that landlords would not be able to guarantee that their properties would be available the following year and if a student left the tenancy early, this could lead to a loss of income if the property is left empty. Universities UK, that represents the sector, has also raised concerns on abolishing fixed term tenancies for students as it could undermine the stability of the sector and it could also reduce the amount of accommodation available to students. A landlord who rents her properties to students, Ms Black has said that she would consider selling her properties if the Bill is not resolved. The bill has not yet been debated by MPs and peers yet and some changes could be made before it is made law in England. It is said that the government is looking at making changes to the bill to make it easier for landlords to let out to students. Blog by Elisee Ricketts Newbold Solicitors [May 2023] The above does not constitute legal advice and any advice should be given by a solicitor taking into consideration your particular circumstances and changes in legislation.
Renters Reform Bill  Newbold Solicitors strive to keep up with the law and protect our clients. The Renters Reform Bill is a new piece of proposed legislation expected to be implemented later this year or early 2024. The Bill sets out to improve the private and social housing sector. The aim is to remove Section 21 orders, due to there being a lack of reasoning and it is seeing more and more people homeless. There is also a drive to protect social tenants against failing landlords by enforcing regular inspections. Though the bill focuses on the rights of contract holders, landlords’ rights are also in review. Private Renting – Private renters will have the opportunity to settle their disagreements with their landlord at a low cost and without going to court. UK Parliament is looking to establish new grounds for possession for private landlords who wish to sell their property, without the use of Section 21. Though the bill is being implemented mainly for contract holders, landlords will now be able to evict based on antisocial behavior with ease. Mandatory evictions for contract holders that have been in rent arrears more than 3 times in a year will be implemented. Social Housing - Social housing renters are also protected under the Social Housing Regulations Bill, both in combination are setting out to protect social housing tenants from being blamed for their houses falling into disrepair. Landlords will now have to make regular inspections and undergoing regular maintenance. The social renting sector may be more difficult to regulate as the governing authority must keep up with the new regime. There are around 90,000 social homes needed every year, it may be difficult for landlords to manage. Why it is needed - There was a report that 29% of those living on welfare are in “non-decent” homes, there is also a recorded average moving cost of 1400. The aim is to help contract holders during the cost-of-living crisis. Section 21 has been said to be exploited by landlords and it is suggested that short term contracts are increased for 6 months to 12. The abolishment of fixed term tenancies combined with that of section 21 is supposed to give contract holders more security in renting. All landlords will be governed by section 8 of 1988 act. Although, it has been recommended that fixed term contracts are used in the student private renting sector. If you have any issues regarding a tenanted property, please do not hesitate to get in touch with our housing team today by calling 0333 060 3407 or filling out the contact form.
    WHAT IS THE HOW TO RENT GUIDE? The How to Rent guide is a free government PDF document that provides information about privately renting in England. The guide details the rights and responsibilities of a tenant, as well as the legal obligations of landlords. When does a landlord need to provide a How to Rent Guide to their tenant? Every landlord must ensure their tenant receives a copy of the How to Rent guide and it is important that the most up-to-date version is provided. This should be provided at the commencement of the tenancy. If a new fixed term tenancy is entered into, or if a fixed term has lapsed and the agreement has subsequently continued by virtue of a statutory periodic tenancy, the landlord must re-serve the How to Rent guide if an updated version has been published. An updated How to Rent guide is set to be published by the Government on the 17th March 2023. If you are a landlord or agent who has served a How to Rent guide in advance of a tenancy starting after this date, it is recommended that the updated version is served after before the commencement of the tenancy. This will ensure that the most up-to-date version has been provided. What is updated in the new guide? The guide has not been updated since December 2020. The latest version of the guide has been updated to include a requirement for carbon monoxide alarms to be fitted in every room with a fixed fuel burning appliance and a requirement that Electrical Installation Condition Reports (EICR) must be provided to tenants. It also contains information on fitting smart meters and there is a section in the guide on ensuring the property is suitable if you have a disability. What are the implications for non-compliance? If a landlord or agent does not provide the correct How to Rent guide to a tenant, it will render any no-fault notice invalid until the correct versions of the guide are provided. To prevent the prospect of unnecessary and costly legal battles when beginning the possession process, it is strongly recommended that landlords ensure the correct How to Rent guide is provided to tenants. Here at NewBold Solicitors, we support and advise both landlords and tenants. If you seek advice regarding your situation, please contact the housing team at 01446 789359 and we can outline how you can be compliant and avoid any claims.