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Proposed legislation has implications for residential landlords

Proposed rental reform legislation to improve the rights of renters, could have implications for landlords.

In June 2022, the Government published a White Paper entitled A Fairer Private Rented Sector, outlining its broad aims for future legislation.

Although the White Paper is still to make its way through Parliament, reforms are widely expected to happen at some point in 2023, bringing in significant changes for tenants and their landlords.

The two key amendments are expected to affect rent review clauses and also bring to an end ‘no-fault’ Section 21 evictions.

If the new legislation is brought in, the use of rent review clauses will be ended. Increases to rent will be allowed annually and challengeable through the First-tier Tribunal where considered disproportionate.

This will see the end of the current numerous contractual review clauses and is in line with the Government’s overarching aim of preventing unaffordable rent rises.

The end of ‘no-fault’ evictions would mean landlords will have to present evidence of tenants defaulting on their rental payments or show sufficient alternative reasons for obtaining possession of the property which will need to be presented at court.

Grounds of possession will be reformed striking a balance between protecting tenants’ security and landlords’ right to manage their property.

As part of this planned legislative amendment, contractual breaks in the tenancy will also be banned. This, in essence, means that tenants who continue to meet the terms of their tenancy agreement would in most cases maintain a tenancy for life.

If you think you could be affected by the issues arising from the proposed legislation, please get in touch with our expert team.