When will the Renters Reform Bill become law?
The Renters Reform Bill had its first reading in the commons on 23 May 2023.
Whilst there is no date set as yet, it looks like it may come into law on 1 October 2024. However, this does not mean that everything will change on this date as it is expected to be introduced in stages across England, being:
- 6 months after royal assent for new tenancies
- 18 months after royal assent for existing tenancies
It has already been a long time in the making as the changes were announced in the Tenant Fees Act 2019, when the consultation ‘New Deal for Renting’ started. Fast forward to 2022 and the Queen’s speech when we all expected things to land in 2023 but it was delayed due to changes in Government and the King’s Coronation.
Why does it take so long?
Historically, bills take about a year to be passed into law because it has to go through the following process:
- First reading in the House of Commons
- Second reading
- Committee stage
- Report stage
- Third reading
- First reading in the House of Lords
- Second reading
- Committee stage
- Report stage
- Third reading
Then we get to the final stages when there is a consideration of amendments and then the Bill will receive royal assent.
Will the Renters Reform Bill kill buy to let?
No.
Due to the way the media are reporting, many landlords feel that it is very unfair, but as I always say, good headlines never make the news. The main reporting has headlines like:
‘Abolition of no-fault eviction – you will never be able to get rid of a bad tenant’.
This is so wrong and very misleading.
Yes, the so-called no-fault notice – Section 21 – to gain vacant possession, is very likely to disappear… but what is not made clear is that there is already another notice in place that can be used to gain vacant possession – the Section 8. This will be strengthened and you can find more details this in out last blog.
Also, you need to be aware that due to the local authority’s advice to a tenant who has received notice, it usually takes longer than two months to gain possession and you already need to go through the courts to get a court date to end the tenancy.
There will be a great deal of horse trading over the next year. Matched with the fact to make this all work the court process needs to be improved – particularly since the Bill says there will be a digital means of moving the notice period through. The National Residential Landlords Association, the Lettings Council and Propertymark, amongst other groups who have the governments ear, are canvassing on your behalf. Therefore, what is being suggested now may not be what the Bill looks like when we get to royal assent.
As we find out changes and suggestions you can rely on us to advise what is planned. As a final note, just be aware that due to a lack of supply, rents are going though the roof. So if you are concerned that you have an impending mortgage increase you may find that you are no worse off.
