Landlords, Don’t Panic – Everything You Need to Know About Renters Reform

Over the past five years, the government has been considering changes to rental legislation, with a particular focus on section 21 of the Housing Act. The Housing Act 1988 established the framework for most private tenancies in England and Wales.

It introduced different tenancy types, including assured shorthold tenancies (ASTs) which are common today. The act aimed to balance the rights and responsibilities of landlords and tenants.

Section 21, is what currently permits landlords to evict tenants without giving a reason, often leading to what are known as “no-fault evictions.” However, with Rishi Sunak’s decision to call an early election, the bill will not be passed before the end of the current government’s term.

Despite this, both major political parties agree that the abolition of section 21 is imminent, whether under the current administration or the next. Here’s a breakdown of the proposed changes and what they might mean for both landlords and tenants.

More Security for Tenants, Stable Market for Everyone

The proposal aimed to abolish Section 21, making it harder for landlords to evict tenants without a valid reason. This would provide tenants with greater security in their homes and potentially lead to longer, more stable tenancies. Research on Goodlord.co suggests this could benefit the market as a whole, creating a more predictable environment for everyone.

Landlords Still Have Options

While Section 21 might be scrapped, landlords will still have grounds to repossess their properties. Section 8 notices, for example, can be used when a tenant breaches the tenancy agreement, such as by not paying rent or damaging the property. This means responsible evictions, where a tenant has broken the terms of the agreement, will still be possible.

Landlords, Don’t Panic!

Landlords concerned about getting stuck with bad tenants were presented with some reassurances in the proposal. The main reassurance is that if the property is needed back for personal use or sale, these situations would still be grounds for eviction.

Secondly, a large portion of tenancies ended because tenants chose to leave, not because landlords evicted them. Landlords could minimise the risk of problematic tenants by focusing on thorough tenant screening and clear tenancy agreements.

Also, if the proposals are passed in the future, there will be a grace period to allow landlords to adjust to the new system. This gave landlords time to adapt their practices and ensure they had strong tenancy agreements in place.

Focus on Good Relationships

Ultimately, the changes aimed to create a more balanced system where both parties have clear rights and responsibilities. Landlords with good tenants who pay rent are unlikely to want to evict them in the first place.

Understanding Section 8

Section 8 notices outline various grounds for repossession, including rent arrears, anti-social behaviour, damage to the property, or subletting without permission. For each reason, specific requirements regarding notice periods and evidence are needed to support the claim.

Landlords should familiarise themselves with the different grounds outlined in Section 8 to ensure they are following proper procedures if eviction becomes necessary.

Why a Letting Agent is Your Best Friend in Uncertain Times

The winds of change are blowing in the rental market, with potential reforms to Section 21. While the exact details and timeline remain unclear due to the recent election, one thing is certain: landlords need to be prepared. That’s where a qualified letting agent comes in.

Letting agents are your trusted navigators through the changing legal landscape of tenancies. They ensure proper tenant screening, draft iron-clad tenancy agreements, and advise on the best course of action if tenant issues arise – all crucial skills in an uncertain market.

Here’s why a letting agent is so vital:

• Legislation can be complex and ever-changing. A good letting agent keeps their finger on the pulse of industry updates, ensuring you’re compliant and protected, regardless of future reforms.
• Reputable letting agents excel at finding responsible tenants who respect the property and value a positive landlord relationship. This proactive approach minimises the risk of needing eviction under any Section, new or old.

The future of renting might be uncertain, but with a quality letting agent by your side, you can face it with confidence. They’ll help you navigate the legalities, find great tenants, and ensure a smooth and successful rental experience.

You can learn more about our services as trusted letting agents here.

A reputable letting agent will have experience identifying quality tenants who are more likely to uphold the tenancy agreement and maintain a positive relationship with the landlord. This proactive approach can minimise the risk of needing to resort to eviction under Section 8.