Landlords could ‘lose control’ of properties

Labour’s proposed Renters’ Rights Bill could significantly impact the level of control landlords have over their rental properties, one leading law firm says.

Osborne Clarke says landlords need more clarity about the proposed Bill which offers tenants increased security but will reshape the private rental sector.

The removal of Section 21 ‘no-fault’ evictions will mean landlords having to adapt to stricter possession grounds under Section 8 of the Housing Act.

Eliminating Section 21, particularly accelerated possession claims, is likely to prolong the process of regaining possession for landlords.

The law firm says that coupled with the complexities of navigating new procedures, this could exacerbate existing court backlogs, especially for cases that cannot be resolved without a full hearing.

Previous government’s Renters (Reform) Bill

Osborne Clarke points out that the Bill will build on the foundations of the previous government’s Renters (Reform) Bill to enhance tenant protections and improve the overall rental experience.

A key provision is the abolition of Section 21 ‘no-fault’ evictions, and it introduces stricter grounds for landlords to regain possession of properties through Section 8 of the Housing Act.

The law will also mandate a ‘decent homes standard’ for all private rented sector (PRS) accommodation.

Disputes between landlords and tenants

There’s also an ombudsman scheme being proposed that will mediate disputes between landlords and tenants, reducing the need for court involvement.

The Bill also prohibits discrimination against tenants receiving benefits or with children, ensuring fairer access to rental properties.

Further measures include granting tenants the right to keep pets, subject to reasonable conditions, and creating a centralised database for landlords, tenants, and councils.

However, the law firm says the government needs to offer clarity because there is a ‘minimal amount of information’ being shared.

Give the industry greater clarity

A spokesperson for Osborne Clarke said: “The publication of the draft bill is likely to give the industry greater clarity and that it will include measures to manage or mitigate delays for landlords seeking to recover possession.

“Clearly, the rental market is poised for significant change, however.

“Landlords, while they await further details of the reforms, should monitor any updates as the Renters’ Rights Bill progresses through Parliament, so that they are best positioned to comply with and not to fall foul of the new requirements as they come in to force.

“Moreover, the government will need to be mindful to ensure they do not spark a slew of evictions under any transitional provisions.”

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