The Renters (Reform) Bill, which received Royal Assent on 24 May 2024, is poised to reshape the landscape of private renting in England. While the full implementation will be phased, the government has now confirmed that the core tenancy reform measures will come into effect from 1 May 2026. This means that from this date, all new tenancies will be governed by the new rules, with existing tenancies transitioning 12 months later, from 1 May 2027.

What are the Key Changes?

Abolition of Section 21 'No-Fault' Evictions

Perhaps the most significant change is the abolition of Section 21 of the Housing Act 1988, which currently allows landlords to evict tenants without providing a reason, often referred to as 'no-fault' evictions. From 1 May 2026, landlords will need to rely on new or reformed Section 8 grounds for possession. This aims to provide greater security for tenants, ensuring they cannot be evicted arbitrarily.

Introduction of Periodic Tenancies

The Bill will move all assured shorthold tenancies to a single system of periodic tenancies. This means that tenancies will no longer have a fixed end date, offering tenants more flexibility and stability. Tenants will be able to give two months' notice to end a tenancy at any point, while landlords will only be able to regain possession under specific, legally defined circumstances.

Strengthened Grounds for Possession

To balance the abolition of Section 21, the Bill introduces new and strengthened grounds for possession under Section 8. These include:

• Landlord intends to sell the property: A new mandatory ground will allow landlords to regain possession if they genuinely intend to sell the property.
• Landlord or their close family member intends to move in: Another new mandatory ground will permit landlords to move into the property themselves or house a close family member.
• Repeated serious arrears: A new mandatory ground will apply where a tenant has been in at least two months' rent arrears three times within the previous three years, regardless of the arrears balance on the day of the hearing. This aims to address persistent non-payment issues.
• Student tenancies: A specific ground will be introduced for student accommodation, allowing landlords to regain possession at the end of the academic year to re-let to new students.

New Decent Homes Standard for the Private Rented Sector

The Bill extends the Decent Homes Standard, currently applicable to social housing, to the private rented sector. This will require privately rented homes to meet minimum standards for safety, repair, and facilities, ensuring tenants live in safe and habitable conditions. This will be a significant undertaking for many landlords and will require proactive maintenance and upgrades.

Prohibition of Blanket Bans on Tenants with Children or on Benefits

Landlords will be prohibited from imposing blanket bans on renting to tenants with children or those receiving benefits. This measure aims to make the rental market more inclusive and accessible for a wider range of prospective tenants.

Tenants' Right to Request to Keep a Pet

The Bill introduces a statutory right for tenants to request to keep a pet. Landlords cannot unreasonably refuse such a request and must respond within 28 days. They can, however, require tenants to have pet insurance to cover any potential damage to the property.

What Does This Mean for Estate Agents, Landlords, and Tenants?

For estate agents, these changes necessitate a thorough understanding of the new legal framework. Advising landlords and tenants accurately will be paramount, requiring updated knowledge of possession grounds, tenancy agreements, and compliance with the Decent Homes Standard.

Landlords will need to adapt their practices, moving away from Section 21 and familiarising themselves with the new Section 8 grounds. Proactive maintenance to meet the Decent Homes Standard will also be crucial. The changes aim to professionalise the sector further.

Tenants will benefit from increased security and improved living conditions, with greater protection against arbitrary evictions and a clearer framework for their rights.

Smeaton Homes' Commitment

At Smeaton Homes, we understand the significance of these reforms for the Plymouth property market. We are committed to ensuring our clients receive the most professional and up-to-date advice on these matters. Our team will be undertaking comprehensive training and workshops to get ahead of these changes, ensuring we are fully equipped to guide landlords and tenants through the transition seamlessly and compliantly.

We believe in providing honest, clear, and reassuring guidance, helping you navigate the evolving landscape of property legislation with confidence.

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