Renters Reform Bill: Who are the winners and losers?

By Liam On May 19, 2023

Renters Reform Bill brings the biggest changes to the housing market in 25 years… but who are the real winners and losers?

Bill launched this week will include major changes to stop no-fault evictions
It has led to arguments with landlords who say buying to rent will become unprofitable
We look at the measures in detail and wonder how effective the reforms will be

By Graham Norwood for The Daily Mail

published: 13:04 BST, 19 May 2023 | Updated: 13:24 BST, 19 May 2023

The term “revolutionary” is overused, but new government proposals for tenants and landlords are just that – and they promise to change the housing market forever.

With some 11 million tenants and two million landlords in the UK, any upheaval is big news. But measures in the Renters (Reform) Bill launched this week are the biggest changes in 25 years.

The plans have sparked a major row with landlords and some Conservative MPs say they risk forcing landlords to sell because buying to let will no longer be profitable.

Tenant groups and other MPs, meanwhile, say the bill – first pledged four years ago – is long overdue for those paying increasingly higher rents.

Here we take a look at what it all means.

Shake-up: Measures in the Renters (Reform) Bill launched this week are the biggest changes revealed in 25 years

1: Stop ‘no fault’ evictions

Tenants can now be evicted for no apparent reason, and some accuse landlords of using this power against tenants who complain or want repairs made.

No-fault evictions should be banned, but in return landlords will be given stronger powers to evict tenants who are anti-social or behind on rent.

It could mean that tenants are given a notice period of two weeks in the event of antisocial behaviour, while behavior that is ‘able’ to ’cause nuisance or annoyance’ can also lead to eviction.

Campaigning charity Shelter claims nearly 230,000 private tenants have been served eviction notices since April 2019.

2: More pets in rental

Landlords must consider all requests from tenants to keep pets and must not refuse on unreasonable grounds. In that case, the tenant can contest the decision.

If a pet is allowed, the tenant may be asked to take out appropriate insurance against damage to the property.

“It could dramatically reduce the number of dogs and cats being unnecessarily separated from their owners because of widespread restrictive pet policies,” says Michael Webb of Battersea, the animal protection organization.

3: Guard dog with bite

A new ombudsman will be able to mediate disputes between tenants and landlords about rent increases, pets or other issues.

Consumer advocate Martin Lewis, founder of Money Saving Expert, says: ‘We have long needed a legal single ombudsman for private rental properties.

Crucially, it will not be voluntary: all private landlords will be required to join and it will have the legal power to enforce apologies, take corrective action and pay damages.”

Dog Day: Landlords will soon be required to consider all requests from tenants to keep pets and should not refuse on unreasonable grounds. In that case, the tenant can contest the decision

4: Register of landlords

This will be managed by local councils, who can take action to ensure that properties meet the correct repair standards, are not overcrowded and have the correct permits.

Landlords are listed on a new real estate portal, which tenants can use for pre-rent checks.

5: Improved Standards

A strict Decent Homes Standard, which currently applies to housing from the municipality and housing associations, is also being extended to the private rental sector.

Last year, the government warned that the conditions of more than 500,000 private rental properties “pose an acute risk to the health and safety of tenants.”

6: End of general prohibitions

If the bill becomes law, it will be illegal for landlords or rental agents to enact a blanket ban on renting to families with children or people on benefits.

The government says households with dependent children make up 30 percent of the private rented sector, and those receiving housing benefit to help with rent payments make up 26 percent.

7: Powerful Enforcement

Municipalities will be required by law to report how many landlords they take action against and how successful they have been.

The government is promising a reformed court procedure whereby cases against rogue landlords or asocial tenants will be digitized to reduce delays.

How effective will reforms be?

Things are going well so far, but while the bill was only published on Wednesday, there are already concerns about how effective these reforms will be and whether they might have unintended consequences.

First, there is concern that there are no provisions for rent checks. Proponents point to data from Rightmove showing that average asking rent outside London has hit a record £1,190 a month and as much as £2,500 in the capital.

But opponents of rent controls insist landlords must meet demands for improved standards and new energy efficiency targets – while facing higher mortgage payments due to rate hikes.

Second, TV real estate expert Phil Spencer says there’s a problem with putting so much emphasis on councils overseeing the changes.

“Leaving everything to the local authorities means there is a total lack of consistency between tenants and landlords: as a result, we have a messy and disjointed private rental sector,” he says.

Third, there is concern about how long it may take for the changes to become law. The bill is complex and likely won’t become law until next year.

While that’s going on, there’s evidence that landlords are selling. Real estate firm Hamptons says there will be 35,000 more homes sold by landlords than bought by them by 2022 – reducing rental stock and risking rents rising even higher as demand outstrips supply.

The landlords that have quit blame higher costs, more taxes and stricter regulations to turn from pre-rent profitable to loss-making for many: fears are the Renters (Reform) Bill could lead more landlords to follow suit , thus exacerbating a crisis the measures were intended to solve.