In June, the long-awaited government White Paper, ‘A Fairer Private Rented Sector’, was finally released.
The paper sets out a 12 point action plan containing the Government’s proposals for a fairer private rented sector. As expected, amongst other changes, it confirms the abolition of Section 21.
This means that in the future, landlords will need to provide a reason for ending a tenancy, such to move back in or wanting to sell up.
Here is a summary of the proposed changes and what they mean:
- Abolishing Section 21 ‘no-fault’ evictions - all tenants will under assured or assured shorthold tenancies will be transitions to one system of periodic tenancies. This means that a tenant will be able to leave at any time by giving two months’ notice. A tenancy will only end if a tenant ends or a landlord has a valid reason, defined in law
- Strengthening mandatory grounds for eviction to ensure responsible landlords can gain possession of their properties efficiently from anti-social tenants and can sell their properties when they need to
- Outlawing blanket bans on renting to families with children or those in receipt of benefits, designed to support the most vulnerable.
Most crucially for landlords, the Government has committed to supporting landlords to take informed decisions on individual circumstances rather than relying on blanket bans. They plan to work with the insurance industry to address landlord and agent misconceptions that it is difficult to arrange insurance for properties where tenants are in receipt of benefits.
The Government is exploring improvements to welfare support information for both tenants and landlords and help ensure that those who are unable to manage their rent payments can arrange direct payments of housing costs to their landlord through their Universal Credit (Managed Payments). So that tenants can access the support they need and can secure accommodation in the Private Rented Sector, they will boost awareness of the range of local services available to help people who are living on a low wage or are receiving benefits.
- Apply the Decent Homes Standard to the PRS for the first time. This means homes must be free from serious health and safety hazards, and landlords must keep homes in a good state of repair so renters have clean, appropriate and useable facilities.
- Introduce a new Property Portal provide a single front door to help landlords to understand, and comply with, their obligations as well as giving councils and tenants the information they need to tackle rogue operators
- 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
- End the use of arbitrary rent review clauses, restricting tribunals from hiking up 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 if their homes are of unacceptable standard
- Allowing pets – Tenants will be given the right to request a pet in their house, which the landlord must consider and cannot unreasonably refuse
- Doubling notice periods for rent increases and giving tenants stronger powers to challenge them if they are unjustified