Overview

The Renters (Reform) Bill aims to overhaul the private rented sector in England and Wales, primarily by abolishing fixed-term tenancies and assured shorthold tenancies, introducing a new, more secure periodic tenancy model. The bill also introduces new rights for renters, imposes stricter obligations on landlords, and establishes a national database of landlords.

Description

Tenancy Reform:

The bill replaces fixed-term and assured shorthold tenancies with a single, periodic tenancy, ending after a month’s notice. Landlords will have fewer grounds for eviction, requiring stronger justification for possession orders. New grounds are added for cases involving agricultural workers, supported accommodation, and sales, alongside changes to existing grounds. Rent increases will be subject to a statutory procedure and review by a tribunal.

Tenant Rights:

Tenants gain the right to request permission to keep a pet, with landlords prohibited from unreasonably refusing. Landlords must provide tenants with a written statement outlining tenancy terms. The bill also aims to prevent discrimination against tenants with children or those claiming benefits.

Landlord Obligations:

Landlords face increased responsibilities, including providing statements of terms and complying with new regulations. They will be subject to financial penalties and potential criminal charges for unlawful evictions or harassment, alongside non-compliance with new regulations. A new landlord redress scheme is introduced to handle tenant complaints.

Private Rented Sector Database:

A national database of landlords and properties will be created, providing a register of landlords and their properties. Landlords must register on the database, maintain accurate information, and face penalties for non-compliance. The database will also record banning orders and relevant offences against landlords.

Government Spending

The bill's impact on government spending is not explicitly detailed within the provided bill text. However, it's likely that there will be costs associated with establishing and maintaining the private rented sector database, the landlord redress scheme and enforcement functions. Additional funding may also be required for training and administrative tasks associated with the enforcement of the bill's provisions.

Groups Affected

• Private Tenants: Increased security of tenure, new rights (pets, less discrimination), and access to a landlord database.
• Landlords: Fewer grounds for eviction, increased responsibilities and potential penalties for non-compliance, mandatory membership of a redress scheme, registration on a national database.
• Local Housing Authorities: New enforcement duties, including imposing financial penalties and using the landlord database.
• Government Agencies: Responsibility for establishing and overseeing the landlord database and redress scheme.
• Legal Professionals: Increased demand for legal services related to the new tenancy legislation and dispute resolution.

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