The Government included in the recent Queen’s Speech, a number of proposals that could see the biggest shake up in the private rented sector for a generation. The publishing of proposals for several reforms is anticipated in autumn of this year. We outline below what, according to reports, they are expected to include.
A white paper on the private rented sector will be publish that will serve as a precursor to legislative reform. The intention to implement The Renters’ Reform Bill was first announced back in 2019 but it almost inevitably met with delays due to the pandemic.
Amongst other measures, recommendations are likely to include:
- The requirement that all private landlords become members of “a redress scheme”, further changes to the enforcement system in the private renter sector will be considered and amendments to the courts handling of the possession processes.
- The Government also intends to respond to a consultation on the removal of Section 21 that abolished evictions. Measures should strengthen repossession grounds for landlords with a valid cause.
- Details regarding a new ‘lifetime’ tenancy deposit model will also be revealed.
Other contents of the speech that could prove relevant to landlords included steps to: overhaul of the existing antiquated planning system, the prevention of long residential leases that include charges of significant ground rents for no tangible service and the creation of a Building Safety Regulator that will support the removal of unsafe cladding in high rise buildings.
Despite the two year delay, the creation of the white paper will still require considerable consultation by Government with the relevant trade bodies and associations. Though this is no guarantee that the proposals will be suitably informed. It is hoped by all in the rental sector that the overhaul of legislation will provide a reasonable platform that is suitable for landlords and tenants alike.