A response to the call for evidence on the Renters' Reform Bill A Fairer Private Rented Sector white paper proposals has been published, informed by the opinions of a wide range of industry representatives - including Goodlord.
The Reforming the Private Rented Sector report outlines a list of recommendations to the government by the cross-party Levelling Up, Housing and Communities (LUHC) Committee for amending the existing proposals.
This guide answers the following questions, according to the committee's response:
The original white paper proposed that tenants give two months' notice to leave a property, once all Assured Tenancy or Assured Shorthold Tenancy move onto a single system of periodic tenancies.
The call for evidence response recommends adding the requirement for tenants to wait at least four months before they can give the two months' notice, to give landlords the "legal certainty" of at least six months' rent at the outset of the tenancy.
For students, the call for evidence committee proposes that:
The white paper outlines how certain section 8 grounds will be strengthened, yet the call for evidence response suggests making the ground addressing the sale or occupation of the property more stringent.
It proposes:
Ground 14 addressing antisocial behaviour would also become mandatory, with more guidance to define "antisocial behaviour" and the circumstances where possession would be granted.
While the white paper highlights the need to introduce "wide-ranging court reforms" to speed up proceedings, the call for evidence response recommends creating a specialist housing court to unblock the process - and to consider better prioritising and fast-tracking claims for rent arrears and antisocial behaviour.
The response also suggests working with landlords on adapting the court process before abolishing section 21, to make sure that landlords have "confidence in the system."
The committee members support introducing the Decent Homes Standard to the private rented sector (PRS).
The response suggests including the Minimum Energy efficiency standards within the framework of the Decent Homes Standard under Criterion D, which requires homes to offer a "reasonable degree of thermal comfort".
It also recommends that the government invests in new financing solutions to support landlords that have to pay out more than £10,000 on improvements works, as well as reviewing the properties currently exempt from the requirements to understand the "merits of legislating to revoke this exemption."
More detail about what should be uploaded to the property portal - which will create a "single front door" to help landlords understand and meet their compliance obligations -has also been revealed, including:
The response also highlights the need for the government to digitise the relevant documents now to make it easier to search, verify, and monitor the information.
Financial penalties for false or misleading information would also be introduced under the recommendations, and the existing proposal to include a rogue landlord database in the portal received the committee's backing.
The white paper says that "any attempts to evict tenants through unjustifiable rent increases are unacceptable". The committee has therefore suggested clarifying what would be a "justified rent increase", with the use of the property portal to declare rent levels.
It also recommends that rent review clauses still be allowed, but that tenancy contracts outline how much rents would increase by. It also suggests including a break period during which tenants can appeal if they think the increase puts their rents above local market rates.
The committee proposes that the government "replaces the existing letting agent schemes with a single ombudsman covering all letting agents and landlords", to avoid confusion and to streamline the dispute process.
The committee calls for the government to explain how it will stop landlords from banning tenants on benefits, as well as upping the benefit rates so that housing benefit covers the cost of renting.
The response suggests abandoning plans to legislate so that landlords can't "unreasonable withhold consent" for a tenant to have a pet in their rental property - or more clearly define "unreasonably" and when a landlord would have to accept a pet.
The tenants' "How to rent" guide should be updated, the committee shares, to include more information about tenant and landlord rights and responsibilities.
It also suggests increasing awareness around the existence of this document, and making it easier for tenants to complain to the new ombudsman and receive compensation if they don't receive it.
A consultation to discover what short-term funding local authorities may require and agree training requirements of the necessary staffing of enforcement and environmental officers has been recommended in the response.
A review of the civil penalties regime in collaboration with local authorities has also been suggested, with local authorities having the power to set up a selective licencing scheme in its area, and to decide how best to enforce standards.
The response also asks for clarity on whether landlords can transfer ownership of their property before a court hearing to avoid prosecution for housing offences - and recommends a consultation on how to avoid this scenario if this is indeed possible.
Recognising the current issues with affordability of rents in the PRS, the committee also recommends a review of the current tax regime for landlords in the buy-to-let sector, with the goal of making investing in the sector more "financially attractive" to small landlords.
The response additionally suggests:
This article is intended as a guide only and does not constitute legal advice. For more information, visit gov.uk.