Rent reform bill

elsien

R200 said:

Courts used to be so backed up it was several months or even nine months to get the tenants out. After this it will be a year or more, and that only after the 4 months of stopped paying rents

And the evidence and reasoning on which this statement is based? 
Oh that's right, you haven't got any.

Grumpy_chap

Sea_Shell said:

I think there are going to be many "unforeseen circumstances" of these measures.    

If I were a tenant, I wouldn't be cheering just yet.  

To be fair, if the rules are going to work in a way that rental market continues to be viable, any change has to be balanced so that LL's don't all sell up or massively increase rents to cover the increased risk.  If the rules are sensible, neither Tenants or LLs will be able to cheer or unduly moan.

Zoe02 said:

• Landlords will no longer be able to unreasonably refuse tenants’ requests to keep pets. Tenants can request pet ownership, and landlords cannot refuse without a good reason.

Our BTL is leasehold and the headlease prohibits the keeping of pets.  Will that be a good reason for us to continue to prohibit pets?

Zoe02 said:

6. Banning Blanket Bans on Certain Tenants

• Landlords will be prevented from imposing blanket bans on renting to families with children, tenants on benefits, or other protected groups.

We always ensure that any new T is suitable to be accepted for ret income protection insurance.  The constraints about benefits etc. are imposed by the underwriter, not by us.
How will that pan out in the future?

We have had Ts with children - it's probably a good thing as becoming a parent tames even the wildest amongst us.

I have no knowledge whether Ts are in any other protected group or not as the question is simply never asked, not by me anyway.

Thank you @Zoe02 for putting together the summary of proposed changes.

[Deleted User]

Grumpy_chap said:

Sea_Shell said:

I think there are going to be many "unforeseen circumstances" of these measures.    

If I were a tenant, I wouldn't be cheering just yet.  

To be fair, if the rules are going to work in a way that rental market continues to be viable, any change has to be balanced so that LL's don't all sell up or massively increase rents to cover the increased risk.  If the rules are sensible, neither Tenants or LLs will be able to cheer or unduly moan.

Zoe02 said:

• Landlords will no longer be able to unreasonably refuse tenants’ requests to keep pets. Tenants can request pet ownership, and landlords cannot refuse without a good reason.

Our BTL is leasehold and the headlease prohibits the keeping of pets.  Will that be a good reason for us to continue to prohibit pets?

Zoe02 said:

6. Banning Blanket Bans on Certain Tenants

• Landlords will be prevented from imposing blanket bans on renting to families with children, tenants on benefits, or other protected groups.

We always ensure that any new T is suitable to be accepted for ret income protection insurance.  The constraints about benefits etc. are imposed by the underwriter, not by us.
How will that pan out in the future?

We have had Ts with children - it's probably a good thing as becoming a parent tames even the wildest amongst us.

I have no knowledge whether Ts are in any other protected group or not as the question is simply never asked, not by me anyway.

Thank you @Zoe02 for putting together the summary of proposed changes.

Personally, I prefer not to have pets due to my phobia of dogs. I own two flats: one on the ground floor and another on the second floor without a private garden. Therefore, I won’t be accepting pets, but I’ll need to gather more information first.

There are always ways to manage this, unless a tenant falsely claims they don’t have a pet when they actually do.

jimbog

R200 said:

Courts used to be so backed up it was several months or even nine months to get the tenants out. After this it will be a year or more, and that only after the 4 months of stopped paying rents

Foolish to pin hopes on this 

_Penny_Dreadful

Zoe02 said:

I have no plans to sell, and my current tenants are great. I issued a Section 21 notice in June of last year. Moving forward, I believe landlords will be more selective when choosing tenants.

Summary 

The UK Renters (Reform) Bill, introduced to Parliament in May 2023, aims to overhaul the private rental sector in England. It focuses on improving renters' rights, ensuring fairer tenancies, and making the rental system more transparent and secure. Below is a summary of its key features:

1. Abolition of Section 21 'No-Fault' Evictions

• Section 21 of the Housing Act 1988 allows landlords to evict tenants without giving a reason at the end of a fixed-term tenancy.
• The Renters Reform Bill seeks to abolish Section 21, giving tenants more security by ensuring landlords can only evict tenants with a valid reason under specified circumstances.

2. Stronger Grounds for Eviction Under Section 8

• The Bill strengthens Section 8, which allows landlords to evict tenants with a valid reason, such as rent arrears or anti-social behavior.
• It introduces new grounds for landlords to reclaim their property, such as if they want to sell the house or move in a family member.

3. Periodic Tenancies

• Fixed-term tenancies will be replaced by periodic tenancies, meaning that tenancies will automatically renew on a monthly basis.
• This change will make it easier for tenants to move without being locked into long-term contracts, giving them greater flexibility.

4. Rent Review Changes

• Rent increases will be limited to once a year, and landlords will have to provide two months’ notice before raising rent.
• Tenants will have the right to challenge unfair rent increases through the First-tier Tribunal.

5. Property Standards and Pets

• The Bill introduces a Private Rented Sector Ombudsman to help tenants resolve disputes with landlords more efficiently.
• Landlords will no longer be able to unreasonably refuse tenants’ requests to keep pets. Tenants can request pet ownership, and landlords cannot refuse without a good reason.
• It also strengthens rules around property maintenance to ensure homes meet decent home standards, covering things like repairs, safety, and energy efficiency.

6. Banning Blanket Bans on Certain Tenants

• Landlords will be prevented from imposing blanket bans on renting to families with children, tenants on benefits, or other protected groups.

7. Creation of a New Ombudsman and Property Portal

• The Bill will establish a Private Rented Sector Ombudsman to handle tenant complaints more effectively.
• A Property Portal will be created to provide tenants with information on landlord compliance with legal obligations, increasing transparency in the rental market.

8. Notice Periods for Renters

• The Bill will increase tenants' notice periods from one to two months when they wish to vacate the property, helping landlords maintain better control over planning.

9. Greater Enforcement and Penalties

• The bill allows for greater enforcement powers to ensure compliance, including fines for landlords who do not adhere to these rules.

This is for the old Renters’ Reform Bill from the previous government. It’s the Renters’ Rights Bill, which I linked to on the first page, that has been introduced by Labour. There are some similarities but they are not the same. 

Kim_13

Grumpy_chap said:

Sea_Shell said:

I think there are going to be many "unforeseen circumstances" of these measures.    

If I were a tenant, I wouldn't be cheering just yet.  

To be fair, if the rules are going to work in a way that rental market continues to be viable, any change has to be balanced so that LL's don't all sell up or massively increase rents to cover the increased risk.  If the rules are sensible, neither Tenants or LLs will be able to cheer or unduly moan.

Zoe02 said:

• Landlords will no longer be able to unreasonably refuse tenants’ requests to keep pets. Tenants can request pet ownership, and landlords cannot refuse without a good reason.

Our BTL is leasehold and the headlease prohibits the keeping of pets.  Will that be a good reason for us to continue to prohibit pets?

Zoe02 said:

6. Banning Blanket Bans on Certain Tenants

• Landlords will be prevented from imposing blanket bans on renting to families with children, tenants on benefits, or other protected groups.

We always ensure that any new T is suitable to be accepted for ret income protection insurance.  The constraints about benefits etc. are imposed by the underwriter, not by us.
How will that pan out in the future?

We have had Ts with children - it's probably a good thing as becoming a parent tames even the wildest amongst us.

I have no knowledge whether Ts are in any other protected group or not as the question is simply never asked, not by me anyway.

Thank you @Zoe02 for putting together the summary of proposed changes.

Presumably you would need specify that the granting of a tenancy required the tenant to meet the conditions for rent protection insurance. Then if the insurer says no due to benefits, you’ve only declined due to being unable to get the insurance which isn’t a protected characteristic. Guessing you’d have to provide proof of approaching the insurer(s) about that particular individual or individuals for the cover prior to refusing the tenancy, and couldn’t just say they always refuse benefits so no point asking.

On your pets point, I can’t see any better reason than that. If the government wanted you to permit pets, they could declare that such conditions in leases were null and void.

ReadySteadyPop

Grumpy_chap said:

ReadySteadyPop said:

Government in Wales seems to agree.

AIUI, the Welsh Government has brought in a multiple of Council Tax charge for all properties that are second homes / holiday rentals.
This has prompted the increase in properties for sale.
Those properties were not a permanent residence for anybody, so their sale does effectively increase the availability of property for primary residence use.

I am not sure that the same metric will apply / work in the same way if BTLs are sold off by current owners.  The BTLs are occupied as permanent residence, so sale does not change the supply / demand equation in the same way.

Depends on the reason for sale, if a young person lost their job in a pub or shop and moved back with parents so they could live more cheaply there would just be an empty housing unit for sale, if someone who is presently a tenant buys it then there are two less tenants in the private rented sector.

ReadySteadyPop

ThorOdinson said:

ReadySteadyPop said:

ThorOdinson said:

BungalowBel said:

We have sold our flat because of this upcoming bill (because I am sure that this is only the first step ) and also the probable hike on Capital Gains tax.  We are not going to be the only ones.

The sale completes in a couple of days, then it is no longer our problem.

Hopefully that's right, there will be many landlords selling up. More property on the market means downward pressure on prices. The sooner you sell the better, probably.

Government in Wales seems to agree.

https://news.sky.com/story/council-tax-hike-on-second-homes-triggers-surge-in-sell-offs-and-mixed-emotions-13215310

"Despite the influx of listings, actual sales are at a record low."

Does this also apply to BTL?

That's because everyone is waiting to see how far prices fall, and what happens with interest rates.

The government has signalled measures to lower house prices, and hopefully economic stability will bring lower interest rates, so it would not be advisable to buy now. The measures may not work of course, but it sounds like the stuff to deal with landlords certainly is.

Landlords: if you want to sell up, consider selling to your tenants at a favourable price. Being already in there, it will reduce costs and hassle, and eliminate most end-of-tenancy issues relating to the condition of the property. The sooner you do it, the less money you are likely to lose as prices fall.

Maybe, not sure about the lower rates though, first sign of inflation they will be hiked again, U.S did this in the 90`s, and Japan is important, if they need to hike you could see bond markets reacting with higher mortgage rates even as BOE is trying to cut them.

R200

Interest rates will keep going up

jimbog

R200 said:

Interest rates will keep going up

I wouldn't make a financial decision that relied on this