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by Munro Research

Rented Homes Bill [HL]


Official Summary

A Bill to amend the Housing Act 1988 to abolish assured shorthold tenancies; to extend the grounds upon which landlords of residential housing may recover possession; and for connected purposes

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Overview

The Rented Homes Bill aims to abolish assured shorthold tenancies in England and expand the grounds on which landlords can regain possession of their properties. It introduces new reasons for eviction, including the landlord's intention to sell or refurbish, and adds requirements for providing evidence supporting these claims.

Description

This bill makes significant changes to the Housing Act 1988. Its key aspects are:

Abolition of Assured Shorthold Tenancies:

The bill abolishes assured shorthold tenancies (ASTs), a common type of rental agreement in England. Existing ASTs will be grandfathered in for three years, after which they will also be abolished.

Expanded Grounds for Possession:

The bill adds several new grounds for landlords to seek repossession:

  • Landlord or family member intending to live in the property (requiring a minimum 12-month occupation intention and substantial evidence).
  • Landlord intending to sell the property (requiring active marketing efforts and evidence of intent).
  • Landlord intending to refurbish the property (requiring evidence of the necessity and impracticality of tenant continued occupancy).
Existing grounds for possession are also amended to strengthen requirements for evidence and justification.

Transitional Provisions:

The bill includes transitional provisions to manage the changeover. Existing tenancies are protected for a period, with a three-year grace period before the abolition of ASTs for existing tenants. The Secretary of State has the power to create further regulations for transitional matters.

Government Spending

The bill doesn't directly specify government spending figures. However, there could be indirect costs associated with administering the new legislation, and potentially increased demand for social housing if evictions rise due to the changes in repossession grounds.

Groups Affected

  • Landlords: This bill significantly alters their ability to regain possession of their properties and may require more rigorous documentation.
  • Tenants: The abolishment of ASTs could offer increased security, but the expansion of eviction grounds could make them more vulnerable to repossession.
  • Courts: Courts will have an increased workload processing more complex eviction cases, requiring more scrutiny of evidence.
  • Social Housing Providers: Potentially increased demand for social housing if more tenants are evicted.
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