A Look into the Future of the Private Rented Sector - The Publication of theWhite Paper & Renters Reform
After a lot of back and forth, the Government finally published the fairer private rented sector white paper on the 16th of June 2022 which outlines what will ensure millions of families benefit from living in decent, well looked-after homes as part of the biggest shake up of the private rented sector in 30 years.
A new blueprint for renters reform will end the injustice of properties which are unfit for Human Habitation and help protect renters from rising cost of living. The changes are pivotal and significant, and include:-
The removal of the section 21 notice (Form 6A. So-called ‘no fault’ section 21 evictions (which for clarity, NOT EVICTIONS) that allow landlords to terminate tenancies without giving any reason – will no longer be possible.
Extending the Decent Homes Standard within the Private Rented Sector
The end to arbitrary rent review clauses, which will give tenants stronger powers to challenge poor practice, unjustified rent increases and enable tenants to be repaid rent for non-decent homes (RROs)
A blanket ban on refusing to rent to families with children or tenants in receipt of benefits
Making it easier for tenants to share their homes with much-loved pets
The white paper marks a generational shift that will redress the balance between landlords and 4.4 million private rented tenants.
Other measures also published yesterday include:
For the first time, ending the use of arbitrary rent review clauses, restricting tribunals from increasing rent and enabling tenants to be repaid rent for non-decent homes . This will make sure tenants can take their landlord to court to seek repayment of rent (ROOs) if their homes are of unacceptable standard
Making it easier for tenants to have much-loved pets in their homes by giving all tenants the right to request a pet in their house, which the landlord must consider and cannot unreasonably refuse
All tenants to be moved on to a single system of periodic tenancies, meaning they can leave poor quality housing without remaining liable for the rent or move more easily when their circumstances change. A tenancy will only end if a tenant ends or a landlord has a valid reason, defined in law. The likelihood is that this will require serving a New Section 8 Notice with modified Grounds.
Doubling notice periods for rent increases and giving tenants stronger powers to challenge them if they are unjustified
Giving councils stronger powers to tackle the worst offenders, backed by enforcement pilots, and increasing fines for serious offences
Landlords will also have additional clarity and support through the following measures:
A new Private Renters’ Ombudsman will be created to enable disputes between private renters and landlords to be settled quickly, at low cost, and without going to court, relying instead an Alternative Dispute Resolution
Ensuring responsible landlords can gain possession of their properties efficiently from anti-social tenants and can sell their properties when they need to
Introducing a new property portal that will provide a single front door to help landlords to understand, and comply with, their responsibilities as well as giving councils and tenants the information they need to tackle rogue operators
These reforms will help to ease the cost of living pressures renters are facing, saving families from unnecessarily moving from one privately rented home to another hundreds of pounds in moving costs.
The measures will form part of the Renters Reform Bill as announced in the Queen’s Speech, to be introduced in this parliamentary session. This will deliver on our commitment to give renters a better deal and make the private rented sector fit for the 21st century with safer, more secure and higher quality homes.
Levelling Up and Housing Secretary Michael Gove said:
For too long many private renters have been at the mercy of unscrupulous landlords who fail to repair homes and let families live in damp, unsafe and cold properties, with the threat of unfair ‘no fault’ evictions orders hanging over them.
Our New Deal for renters will help to end this injustice by improving the rights and conditions for millions of renters as we level up across the country and deliver on the people’s priorities.
It is important to understand that whilst these announcements will be a major shift in power between tenants and landlords, the changes are not imminent. They provide an idea, an outline of what the landscape within the Private Rented Sector will look like a year or 18 months from now.