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The Future of Renting: How the Renters' Reform Bill Aims to Balance Tenant and Landlord Rights" - An analytical piece exploring the objectives and potential challenges of the proposed reforms

Writer's picture: Brendan SwannBrendan Swann
-by Nikita Naude
-by Nikita Naude

Reform – by definition, denotes the idea of improvement, a positive change in structure. Can this be said of the Renters’ Reform Bill, which has been said to deliver a ‘renting revolution’?

 

The Renters’ Reform Bill has as its main objective a balancing of rights between landlords and tenants.

 

How does it aim to do so? Some of the objectives includes ending "no-fault" evictions, making it easier for tenants to challenge poor living conditions, and strengthening the ability of landlords to regain possession of their property when needed. Overall, it aims to make the rental market fairer, safer, and more transparent for both parties.

 

The right to end a tenancy for rent arrears will be changed to include repeated late payments as a mandatory ground. The court must give possession in these circumstances rather than being able to exercise its discretion. This is a big change to the existing rules where a possession order can be avoided by reducing arrears to less than two months' rent on the day of the hearing.

 

The Bill introduces additional grounds allowing landlords to end tenancies if their circumstances change, like wanting to sell or develop the property. It also includes a provision to terminate tenancies if the local authority deems the property too small for the number of occupants. The aim is to crack down on rogue landlords by strengthening enforcement and imposing financial penalties on non-compliant or bad-faith landlords.

 

The Bill does not address the key issue of enforcing landlords' possession rights. The court system for evicting problem tenants remains inefficient, with significant delays in scheduling hearings. Allowing rent arrears to accumulate and issues like property damage or anti-social behaviour to persist.

 

The ending of section 21 'no-fault' evictions means that every case will require evidence to be presented, which can then be challenged. The system cannot cope with its current workload, and the proposed legislation will only add to it.

 

The entire eviction process needs reform, from filing a claim for possession to processing it through the courts and eventually carrying out evictions with a bailiff. There are delays at each stage, and addressing these issues will require substantial investment.

 

Landlords with small portfolios are already exiting the market due to rising interest rates, inflation, and the removal of mortgage interest as a tax-deductible expense. There is a real concern that the fear of increased regulation and the potential for fines from local authorities—without judicial oversight—could drive even more landlords out of the market.

 

For the bill’s success, there would need to be substantial investment in a modern, efficient court system to handle these cases. Without this, the proposed changes could lead to an imbalance that harms both landlords and tenants. Effective enforcement and continued dialogue between tenant and landlord associations will be crucial for achieving the intended reforms.

 

At Swann Property, we are eager to assist you to navigate and manage your concerns.

 

Swann Property provides Lettings and Management services to individuals, residential management companies and freeholders in the United Kingdom with a particular focus on leasehold developments.



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