The status of the Renters Reform Bill is that it could become law and be implemented sooner than expected, so landlord’s need to get organised quickly.
The second reading of the Renters Reform Bill in the House of Commons lured landlords into a false sense of security with Michael Gove announcing that section 21 no fault eviction notices, which are in place so landlords can get possession of their properties without having to give a reason, will still be allowed for the foreseeable future.
It was said that the government would not get rid of section 21 notices until the courts are in a position to cope with the new provisions that are being put in place.
This earned the government a lot of praise and here at Rocket we even made a comment commending the government for seeing sense after our initial criticism.
According to JMW Solicitors, however, this is all smoke and mirrors.
The government's real plan seems to be that they are telling us one thing, but in reality, they are going to try and rush through the Renters Reform Bill, so that ahead of the next general it can be ticked off as an accomplishment.
In terms of the act of parliament itself, they will be doing the basic outline of what will be happening and then the government minister will be allowed to introduce regulations, as well as deciding on implementation and timescale as per their preference.
It is expected that the new elements of the Renters Reform Bill will go through parliament in December, be enacted in spring 2024 and finally start applying to new tenancies from Autumn 2024.
As such, by this time next year, it may no longer be possible to serve a section 21 notice and the only way a landlord will be able to get their tenant to leave will be through a section 8 notice, which requires giving a reason, or to put up the rent with a section 13 notice.
There is also the issue that we can’t actually be sure who will be introducing this legislation.
From May through to October next year at any time there could be a general election and then it may well be the Labour Party implementing the Renters Reform Bill, which actually shouldn’t make a huge difference, but it adds to the uncertainty.
For landlords, this means you need to get prepared.
These preparations come down to three main things: Make sure you have good tenants, make sure they’re paying market rent and then aim to sign those tenants to long-term contracts.
After Autumn 2024, removing bad tenants and upping the rent could become a lot more difficult.
This may sound daunting for landlords, but as long as you plan ahead and you’re working with a competent agent then you will be fine and here at Rocket we’re making sure all of our landlords are in the best position possible to deal with the incoming changes.
