Liz Gibbons of Acuity Law considers legislation to protect renters across England and Wales.

May 2023 saw more detail on the Government's much-anticipated proposals to transform the law on rented homes in England, with the introduction of the Renters (Reform) Bill to Parliament.

The keystone of the Bill is to abolish "no fault" evictions.

What is a "no fault" eviction?

Section 21 of the Housing Act 1988 allows a landlord in England to evict a tenant for any reason if the fixed-term tenancy is ending, or by giving two months' notice in a periodic tenancy. Renting privately is therefore fundamentally insecure, with renters at risk of losing their home unexpectedly, and the financial, employment and schooling difficulties that moving house entails.

Section 21 is sometimes exploited to force out tenants with genuine concerns about the quality of their housing, deterring them from confronting their landlord.

How is the law changing?

The Renters (Reform) Bill in its current state will abolish Section 21, setting prescribed reasons for evicting a tenant and the notice period necessary. Valid grounds include:

• The landlord wishes to move into the property

• The landlord wishes to sell the property

• The property has been used as student accommodation

• The landlord wishes to house an employee who is an agricultural worker

• The landlord wishes to redevelop the property and the changes cannot be made while the property is occupied

• The tenant is in serious or repeated rent arrears

• Anyone living or visiting the property has displayed severe anti-social behaviour.

More grounds for repossession exist, distinguishing between mandatory grounds, in which a court must allow eviction if the grounds are met, and discretionary grounds, in which a judge may allow repossession if they think it reasonable.

The Government touts the reform as a "once-in-a-generation overhaul of housing laws", promising to benefit 11 million tenants across England.

By broadening "the disruptive and harmful activities that can lead to eviction and making it quicker to evict a tenant acting anti-socially," it claims the Bill also strengthens the rights of compliant landlords, currently disadvantaged by a regime that complicates repossession where tenants are in substantial rent arrears or behaving badly.

The Bill creates a digital portal to help landlords and tenants to understand their obligations and terms. It also establishes a Private Rented Sector Ombudsman scheme, providing a free, impartial and binding outcome for tenants whose landlords have not resolved a legitimate issue.

Are these reforms unique to England?

Yes. However, to residents of Wales, they will sound familiar. The Renting Homes (Wales) Act 2016 (RHWA), in force since 2022, also boosts security for renters, outlining clear rights and responsibilities for all parties.

It tackled the issue of "no fault" evictions by stipulating that:

• Courts do not have to allow landlord possession arising from a "no fault" notice where the tenant has complained about poor standards

• Landlords must give at least six months' notice to end an "occupation contract" (formerly a tenancy agreement) providing the tenant has not broken any terms

• "No fault" notices cannot be issued for the first six months of occupancy

• If the landlord does not act to gain possession of a property following a "no fault" notice, they cannot issue another one for six months

• If a fixed-term-contract-holder stays beyond the fixed term, the contract will usually become a periodic standard contract, which the landlord can only terminate by issuing a six-month "no fault" notice

• Landlords must not include a break clause in a fixed-term standard contract of less than two years, and must wait until at least 18 months into the contract to serve notice in contracts of two years or more.

Are renters better protected in England and Wales?

Both the Renters (Reform) Bill and the RHWA encourage clarity in the rights and responsibilities of landlords and include further regulation that they must comply with.

Nevertheless, many commentators agree on the need to improve the experience of renters. Says Acuity Law Social Housing specialist Liz Gibbons:

"The reforms in the private rented sector in England and Wales certainly bring positive change. However, there is still much more to do. With private rents having risen by 4.2% in the 12 months leading up to 2022, should the introduction of rent caps in the private rental sector also be reconsidered?"

She adds:

"England and Wales face different challenges and there is no single solution to improving the tenant experience. It will be interesting to see what each nation can learn from the other."

For more information, please visit the web site - acuitylaw.com