It has been a whirlwind of change and regulation and legislation in the last six years or so with so much coming in and so many threats but the longer awaited Renters Reform Bill has now been published.

The PRS (Private Rental Sector) has experienced significant changes in recent years, and the Renters Reform Bill, published and proposed in May 2023, will bring about further transformations. This bill aims to introduce a range of reforms that will impact landlords and their businesses models.

Below are some details to give you an oversight of what is going on, what is proposed and what it might mean.

Abolition of Section 21 Notices:
One of the most significantly discussed and impactful changes proposed is the abolition of Section 21, commonly known as “no-fault” evictions.

As you know, Section 21 allows landlords to regain possession of a property without providing a specific reason. The proposal aims to protect tenants from unfair evictions and provide them with greater security and stability.

Instead of Section 21 notices, landlords will be required to use Section 8 notices, which necessitate a legitimate reason for eviction, such as rent arrears or breach of tenancy agreement. This will need drastic consideration and as has been highlighted during many discussions with landlord associations, including the NRLA, there really does need to be an overhaul of the court system to manage such a major change.

The impact on landlords: The abolition of Section 21 notices means that landlords will need to ensure they have valid reasons for evicting tenants. This makes it crucial to maintain thorough records of any breaches of the tenancy agreement or non-payment of rent. In fact, meticulous record keeping is a major part of being a landlord today in order to protect your position. The reform aims to encourage responsible tenancy management and discourage indiscriminate evictions. However, landlords may face challenges in the event of problematic tenants who do not meet the criteria for eviction under Section 8.