The ultimate guide to the new rental reform for landlords 

Are you in the know about the latest changes from the rental reform?  The UK government has announced a number of reforms to the rental market, which is set to come into effect from, well…now. 

These reforms are designed to make renting fairer and more secure for tenants. In addition, they have been drawn up to improve the quality of rented homes and to prevent any inadequate living conditions 

Before we jump in, let’s get a look at the larger picture of how many this new rental reform will affect.

How many landlords are there in the UK?

Surprisingly, there are some 383,600 landlords across the nation. Considering that there are this many landlords, it makes you realise just how many properties are under the management of landlords. 

How many landlords own more than one property in the UK?

43% of landlords own one rental property in the UK. Looking more closely at the 43%, this suggested that 20% of tenancies are represented by this majority.

So how many landlords own more than one rental property? 39% of landlords own between two and four rental properties representing 31% of tenancies and 18% of landlords own five or more. This upper bracket of landlords ultimately represents 48% of UK tenancies. 

Bearing in mind, the amount of autonomy UK landlords have over tenants’ habitable space, finance and tenancy agreement length, the government have rightly placed a firm foot in the door to bring tenants’ well-being into the frame more. 

What changes should landlords expect from the rental reform?

Getting ahead of any changes will be imperative to your understanding of how the rental reform will affect you this year and beyond. In fact, you may have already started to feel the impact of these changes and had to make adjustments yourself. 

We’ve pinpointed a few highlights that we think landlords, like yourself, would deem essential action points.

Ban on Section 21 evictions 

One such reform is the ban on Section 21 evictions, which previously allowed landlords to evict tenants without a reason. Instead, landlords are now required to provide a minimum of three months’ notice before evicting a tenant. 

New ombudsman service 

Additionally, a new ombudsman service has been established to help resolve disputes between landlords and tenants. 

Pets allowed 

Unless your property is deemed ‘unsuitable or unsafe’ for a pet, you won’t be able to refuse your tenant’s pet ownership. You will still be able to find a breach in their tenancy agreement if the pet is a danger to neighbours, causing destruction or violating noise levels.  

What does the abolishment of section 21 mean for landlords?

Section 21 has been the main antagonist in many tenants’ stories of housing nightmares. With landlords being able to enforce this section previously, many tenants have been left high and dry with little or no explanation as to why. 

What’s the problem with section 21 of the Housing Act 1988? 

Section 21 is a provision that grants private landlords the power to repossess their properties from assured shorthold tenants without having to prove fault on the part of the tenant. 

This is why it is commonly referred to as the ‘no-fault’ ground for eviction. However, private tenants, their representatives, and other professionals in the sector argue that this ability of landlords to end a tenancy at short notice has a negative impact on tenants’ well-being. 

Research has shown that tenants are often hesitant to assert their rights to secure repairs or challenge rent increases due to the ease with which landlords can evict them. 

Respondents to a 2018 consultation on overcoming the barriers to longer tenancies in the private rented sector reported feeling unable to plan for the future due to housing insecurity, which has knock-on effects on children’s education and residents’ mental health.

How does the new rental reform affect Section 21 evictions?

Section 21 evictions are currently the most common way for landlords to evict tenants. However, the government has announced that they will be banned from 2023. This means that landlords will no longer be able to evict tenants without a reason.

If a landlord wants to evict a tenant after 2023, they will need to have a valid reason for doing so. This could include rent arrears, anti-social behaviour, or if the tenant has broken the terms of their tenancy agreement.

Reasons landlords are able to evict tenants without the use of Section 21

• Nonpayment of rent. 
• Lease violations: If the tenant violates significant terms of the lease, such as subletting without permission, causing damage to the property, or engaging in illegal activities, the landlord may have the right to evict.
• Expired agreement: If the lease agreement has reached its specified end date, and the tenant has not renewed or entered into a new lease, the landlord can initiate eviction procedures.
• Illegal activities: If the rental property is used for illegal purposes, such as drug dealing or other criminal activities, the landlord may have grounds for eviction.
• Nuisance or disturbance: If their behaviour creates a nuisance or significantly disturbs other tenants or neighbours, the landlord may have the right to evict them.
• Failure to maintain the property: Neglecting the property’s maintenance responsibilities and causing significant damage or deterioration, the landlord may have grounds for eviction.
• Conversion of property use: If the tenant uses the rental property for a purpose other than what was agreed upon in the lease (e.g., turning a residential property into a commercial space), the landlord may be able to evict.

Notice periods

The government has also announced that landlords will be required to give tenants a minimum of three months’ notice before evicting them. This is an increase from the current two months notice period.

The three-month notice period will apply to all tenancies, regardless of when they were started.

What do landlords need to do in response to the Renters Reform Bill? 

Action is better than reaction in the face of the new renter’s reform bill. Landlords, take a look at these three points for starters and see how you will need to adjust your practices accordingly. 

Before you start you feel like the new rental reform is targeted at demonising landlords, just remember that with better conditions and relationships with your tenants, you’re set to establish more quality and consistent tenancy agreements that leave you feeling secure and your tenants happy. 

 Some of the key measures in the Renters’ Reform Bill include:

• A ban on landlords using rent increases to make up for the cost of improvements.

• A requirement for landlords to provide a minimum of energy efficiency rating of E for all rented homes.

• A requirement for landlords to provide a copy of the gas safety certificate to tenants.

Check with your local council as to when these measures are being introduced. Each local council will have more authority over requirements and disputes between landlords and tenants. 

What do landlords need to do to protect themselves against rental reform changes?

We want you to feel secure with the new practices in place. Landlords need to be aware of the changes that are coming to the rental market, and they need to take steps to ensure that they are compliant with the new rules.

Some of the things that landlords can do to prepare for the new rental reform include:

• Review their tenancy agreements to ensure that they are compliant with the new rules.
• Start to build relationships with their tenants so that they can work together to resolve any problems that may arise.
• Get familiar with the new ombudsman service so that they know how to access it if they need to.

The new rental reform is likely to have a significant impact on landlords, but it is important that they understand their rights and responsibilities under the new system. 

By taking steps to prepare for the changes, landlords can ensure that they continue to provide good-quality homes for their tenants.

What does the new rental reform say about pets?

The new rental reform in England will make it easier for tenants to keep pets in rented homes. Under the new rules, landlords will be required to consider a tenant’s request to keep a pet, and they will only be able to refuse the request if they have a good reason.

Some of the reasons that a landlord may be able to refuse a request for a pet include:

• The pet is a dangerous breed.
• The pet is too large for the property.
• The property is not suitable for pets, for example, if it is a listed building.
• The tenant has a history of letting their pet cause damage to the property.

If a landlord refuses a request for a pet, they will need to provide the tenant with a written explanation of their reasons. The tenant will then be able to challenge the decision by making a complaint to the ombudsman.

The new rules are expected to come into effect in 2023.

Here are some additional things to keep in mind about pets and the new rental reform:

• Landlords will still be able to charge tenants a pet deposit, but the deposit will be capped at £250.
• Landlords will be able to require tenants to take out pet insurance, but they cannot charge tenants an additional fee for doing so.
• Tenants will be responsible for any damage caused by their pets, but landlords will be required to keep the property in a good state of repair.

The new rental reform is a positive step for tenants who want to keep pets. It will make it easier for tenants to find homes that allow pets, and it will give tenants more rights if their landlords refuse their requests for pets.

If you’re concerned about the pet in question, make sure you involve your local council from the get-go. As stated before, your local ombudsman will be able to offer advice and guidance if you feel the pet in question is not compliant with the list above. 

Keeping a clear trail of communication and evidence which can be taken during your six-month visits can be of great help when presenting your case to your local council. You must be able to prove that you’ve been reasonable with your requests as well as set deadlines that a tenant is able to meet. 

How can landlords prepare for the new rental reform?

Now is a good time to begin preparing as many of these changes are in place. Here are some tips on how landlords can prepare for the new rental reform:

• Review your tenancy agreements. Make sure that your tenancy agreements are compliant with the new rules. This may involve updating your agreements to include new clauses, such as the requirement to consider tenants’ requests for pets.
• Get familiar with the new ombudsman service. The new ombudsman service will be a valuable resource for landlords and tenants who need to resolve disputes. Make sure that you understand how to access the service and what it can do for you.

• Start to build relationships with your tenants. Good communication and a positive relationship with your tenants can help to resolve any problems that may arise. Get to know your tenants and their needs, and be responsive to their concerns.

• Make sure your properties are in good condition. The new rental reform will place a greater emphasis on landlords’ responsibilities to maintain their properties in a good state of repair. Make sure that your properties are up to standard and that any repairs are carried out promptly.

Extra steps you should take to keep in the know about The Renters Reform Bill

Even though these new steps are currently in action, that doesn’t mean they aren’t subject to change or adjustment. 

Keeping ahead of any further changes will hold you in good stead. 

• Get professional advice. If you are unsure about how to comply with the new rules, it is a good idea to get professional advice from a solicitor or property manager.
• Stay up-to-date with the latest changes. The new rental reform is still being developed, so it is important to stay up-to-date with the latest changes. You can do this by subscribing to newsletters or following relevant news sources.
• Be proactive. Don’t wait until the new rules come into effect to start preparing. The sooner you start, the more time you will have to make any necessary changes.

What should a landlord change in the tenancy agreement to comply with the new rental reform?

Get your tenancy agreement up to speed with the new rental reform. Remember, you always have your local council to ask if you’re unsure of the changes you need to make. 

• Remove Section 21 evictions. Section 21 evictions are currently the most common way for landlords to evict tenants. However, the government has announced that they will be banned from 2023. This means that landlords will no longer be able to evict tenants without a reason.

If a landlord wants to evict a tenant after 2023, they will need to have a valid reason for doing so. This could include rent arrears, anti-social behaviour, or if the tenant has broken the terms of their tenancy agreement.

• Increase the notice period. The government has also announced that landlords will be required to give tenants a minimum of three months’ notice before evicting them. This is an increase from the current two months’ notice period.

The three-month notice period will apply to all tenancies, regardless of when they were started.

• Remove rent review clauses. Rent review clauses are clauses in tenancy agreements that allow landlords to increase rent at regular intervals. The government has announced that they will be banned from 2023. This means that landlords will no longer be able to increase rent automatically.

Landlords will still be able to increase rent, but they will need to negotiate with their tenants.

• Include a pet clause. The new rental reform will make it easier for tenants to keep pets in rented homes. Under the new rules, landlords will be required to consider a tenant’s request to keep a pet, and they will only be able to refuse the request if they have a good reason.

Some of these changes could help to protect landlords, while others could make it more difficult for them to rent out their properties.

Will the new rental reform help protect landlords?

Yes. With tenants receiving support from the new rental reform, so will landlords, as seen in the reforms highlighted below.

One of these reforms is an increase in the minimum notice period that landlords must give tenants before evicting them, from two months to three months. This change is expected to provide landlords with more time to find new tenants and avoid financial losses. 

Additionally, the rental reform will introduce a right-to-rent scheme, which will require landlords to check the immigration status of their tenants before renting to them. This will help to protect landlords from renting to tenants who are not legally allowed to live in the UK. 

Another significant change is the introduction of a new ombudsman service to help landlords and tenants resolve disputes effectively, avoiding costly and time-consuming legal action. 

Lastly, the rental reform will establish a new Decent Homes Standard, which will set minimum standards for the condition of rented homes. This will help to protect landlords from being held liable for damage caused by tenants and ensure that tenants have access to safe and habitable living conditions.

However, it might not all be roses. Let’s be realistic and take a glance at the challenges landlords may face with the new rental reform being put in place. 

What challenges will landlords face as a result of the new rental reform?

Unfortunately, some changes could make it more difficult for landlords to rent out their properties. Take a look at these points below and just keep them in the forefront of your mind and landlord practice as you continue on with your property business.

Abolition of Section 21 evictions will mean that tenants can only really carry out Section 9 evictions. This could make it more difficult for landlords to get rid of tenants who are not paying their rent or who are causing problems.

Look out for increased costs. The new rental reform could lead to increased costs for landlords. This could include the cost of repairs to bring their properties up to the new Decent Homes Standard, the cost of professional fees, and the cost of insurance.

How will insurance help landlords when the new rental reform measures come in?

Our insurance expert Jackie from CIA Landlords stated

“Landlords should always have the correct insurance and the reform will not change this.

When taking our insurance Landlords should always ensure that all the information provided when obtaining a quotation is correct and that the building and contents, if required, are insured for the correct amount. The Building Sum insured can be calculated using the BCIS website. We recommend calling CIA to discuss a quotation to ensure the policy will cover all the individual landlord needs”

Discuss your landlord insurance and landlord contents insurance policy with us today. We’re passionate about finding the right policy for you. Have peace of mind and request a callback today.