Posted on Monday, March 25, 2024

Plans for abolishing section 21 evictions & end of fixed-term tenancies

The government's proposal for a ban on section 21 evictions and scrapping of fixed-terms tenancies are issuing concern for many landlords. The Renters Reform Bill that is planned to be introduced will result in fixed term tenancies, including both assured and non-assured shorthold tenancies will be replaced by periodic tenancies with no fixed end date. The Bill will also abolish section 21 evictions. 

This new law will make it simper for landlords to repossess properties from anti-social tenants, and tenants will be given the legal right to request to keep a pet in their home for the first time. For many years, tenants have felt insecure in rented accomodation due to factors such as no-fault evictions and spiralling costs.The bill will be designed to challenge this, giving tenants the opportunity to make their rental accomodation feel like home, rather than temporary housing. This has been looked upon negatively by landlords, who feel this has shifted the rental dynamic in a way that favours tenants instead of balancing their rights. 

The bill has introduced a Decent Homes Standard, meaning all properties must adequatley meet a minimum requirement of standard, this relates to their condition and state of repair. Tenants will also be able to challenge landlords that fail to provide a minimum standard, tenants will have greater power over the condition of properties they rent.

Landlord's will be unable to increase rent more than once a year, tenants will be able to save a greater amount of money. The increase of the rent increase notice period will rise to two months rather than one, allowing more time for tenants to find alternative accomodation if necessary. On the other hand, rental costs may increase to make up any money lost to keep the property within the Decent Homes Standard. This may also happen in cases where tenants request pets, as the landlord may request pet insurance but extra fees to facilitate this. 

With landlords in such opposition to the bill, there is a chance many individuals will sell their properties, instead of renting them out. This could lead to widespread implications for the housing market, such as driving up rental demand and causing a further spike in rental costs. 



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