Explained: What is happening with the Renters Reform Bill?

The Renters Reform Bill was introduced into Parliament in May 2023 and has just finished its third reading in the House of Commons. 

It will now make its way through the House of Lords, where it will face further scrutiny by peers. It is likely to see further changes before it is passed. 

But it has been beset by delays, and now has 200 amendments added to it.

 “[The bill] has been slowed down dramatically through all the stages of its process and by what we think of possible vested interests,” Policy and Public affairs manager at Generation Rent, Conor O’Shea, said. “It’s more like a landlord Bill of Rights than the renters reform bill [now]”.

“There have been more concessions to make things better for landlords, worse for tenants… to the point where we think that if the bill passed [right now], it would be a failure and would not sufficiently change the lives of tenants,” O’Shea continued. 

What has changed so far?

Tenant Notice

Previously, the bill allowed tenants to break their lease – with 2 months’ notice – from day one of the tenancy. Now, a tenant can now only give 2 months’ notice after living in a property for at least four months, meaning a minimum term of six months.

While this change is unlikely to affect the majority of tenants, it does affect those who are “in bad situations” – those who have been “mis-sold” a home, or those whose circumstances change part-way through the tenancy, O’Shea said.

“It’s another example of the government backing the landlord bottom line of profit over the real genuine danger circumstance the tenants might find themselves,” he continued. 

Review of Courts

The third reading suspended a decision on no-fault evictions. 

The original bill contained wording to abolish Section 21 no-fault evictions. If this is carried out, pressure on the courts will increase as landlords will serve more Section 8 eviction notices, which often go through courts. 

The third reading confirmed that a review of the court system will be carried prior to the abolition of Section 21 to ensure an “efficient” system, but postponed a decision to abolish the clause entirely.  

“The ending of a private rented tenancy is the most common reason for a household being at risk of homelessness,” a spokesperson for the Local Government Association said. “We are very concerned by the commencement clause that would allow the Secretary of State to delay the implementation of the ban, while the Government addresses court backlogs,” 

“Without a sufficient strategy and timescale to address the alleged backlogs, this delay could be indefinite,” the spokesperson added.

“Without a sufficient strategy and timescale to address the alleged backlogs, this delay could be indefinite.” a spokesperson for the Local Government Association

Student grounds for possession

Originally, the bill only allowed landlords who were letting purpose-built student accommodation to serve a Section 8 notice – eviction for a legal reason – on a tenant. Now, they are able to serve eviction notices on all students, including those in the private rented sector. 

Landlord licensing

Selective licensing and HMOs will be reviewed ahead of the creation of a Property Portal, which aims to be a ‘one-stop shop’ for landlords and tenants to access rental guidance. All landlords will be required to sign up to the portal.

Has the bill been watered down too much?

O’Shea argued that the changes have come from landlord vested interests, who have “too much power in the UK housing markets”. 

The bill was introduced to redress the imbalance between landlords and tenants, and was described by the Government as “the biggest shake-up of the private rented sector in 30 years” which would “bring in a better deal for renters”.

“Tenants need to have more power in order to not be exploited… but this bill has been weakened to the point where it doesn’t address that,” he said. “It’s an incredibly good time to be a landlord.”

“[Generation Rent] trust that the House of Lords will wield their power and redress some of the some of the concerns that we have,” O’Shea said.

The National Residential Landlords Association did not respond to a request for comment.