Guidance

Guide to the Renters (Reform) Bill

Information relating to the Renters (Reform) Bill which was introduced to Parliament on 17 May 2023.

• From: Department for Levelling Up, Housing and Communities
• Published: 17 May 2023

Applies to England

Renters (Reform) Bill

The Renters (Reform) Bill will deliver on the government’s commitment to “bring in a better deal for renters”, including abolishing section 21 ‘no fault’ evictions and reforming landlord possession grounds. It will legislate for reforms set out in the private rented sector white paper published in June 2022.

Background

A healthy private rented sector is a vital part of our housing market - providing much-needed flexibility and in many cases serving as a stepping stone towards home ownership. The overall number of privately rented properties has doubled since 2004 - peaking in 2016 and remaining roughly stable since. For the most part, the sector works well for both landlords and tenants. However, some renters face a precarious lack of security as a result of section 21 evictions. Short notice moves worsen children’s educational outcomes, make it challenging to hold down stable employment, and prevent families putting down roots and investing in their local area.

Nearly a quarter of private rented homes do not meet basic decency standards. The tragic death of two-year-old Awaab Ishak shone a light on the unacceptable state of this damp, cold and dangerous housing - but these problems are not limited to the social rented sector. The government intends to tackle these issues in the private rented sector by legislating to apply a Decent Homes Standard. These dilapidated homes are costing the NHS an estimated £340 million per annum and are holding back local areas, making them less attractive places to live and work.

Responsible landlords face challenges too - including when evicting tenants who wilfully do not pay rent or exhibit anti-social behaviour. They also suffer by being undercut by a minority of criminal landlords. Reforms aim to celebrate the overwhelming majority of landlords who do a good job and give them peace of mind that they can repossess their property when a tenant is behaving badly, or their circumstances change.

Overview of Bill measures

The Renters (Reform) Bill will improve the system for both the 11 million private renters and 2.3 million landlords in England. Our reforms have been developed in consultation with landlord and tenant groups over the past five years. The Renters (Reform) Bill will:

• Abolish section 21 evictions and move to a simpler tenancy structure where all assured tenancies are periodic - providing more security for tenants and empowering them to challenge poor practice and unfair rent increases without fear of eviction;
• Introduce more comprehensive possession grounds so landlords can still recover their property (including where they wish to sell their property or move in close family) and to make it easier to repossess properties where tenants are at fault, for example in cases of anti-social behaviour and repeat rent arrears;
• Provide stronger protections against backdoor eviction by ensuring tenants are able to appeal excessively above-market rents which are purely designed to force them out. As now, landlords will still be able to increase rents to market price for their properties and an independent tribunal will make a judgement on this, if needed. To avoid fettering the freedom of the judiciary, the tribunal will continue to be able to determine the actual market rent of a property;
• Introduce a new Private Rented Sector Landlord Ombudsman that private landlords must join, which will provide fair, impartial, and binding resolution to many issues and prove quicker, cheaper, and less adversarial than the court system;
• Create a Privately Rented Property Portal to help landlords understand their legal obligations and demonstrate compliance (giving good landlords confidence in their position), alongside providing better information to tenants to make informed decisions when entering into a tenancy agreement. It will also support local councils - helping them target enforcement activity where it is needed most;
• Give tenants the right to request a pet in the property, which the landlord must consider and cannot unreasonably refuse. To support this, landlords will be able to require pet insurance to cover any damage to their property.
• Apply the Decent Homes Standard to the private rented sector to give renters safer, better value homes and remove the blight of poor-quality homes in local communities. This will help deliver the Government’s Levelling Up mission to halve the number of non-decent rented homes by 2030.
• Make it illegal for landlords and agents to have blanket bans on renting to tenants in receipt of benefits or with children - ensuring no one is unjustly discriminated against when looking for a place to live; and
• Strengthen local councils’ enforcement powers and introduce a new requirement for councils to report on enforcement activity.

Tenancy reform

The Renters (Reform) Bill will abolish section 21  evictions and deliver a simpler, more secure tenancy structure. This will provide tenants with greater security, supporting them to put down roots in their community, whilst ensuring landlords remain confident that they can regain their property where they need to. Renters will also feel empowered to challenge the small minority of landlords who provide poor quality housing without the worry of  eviction.

To achieve this, the Renters (Reform) Bill will end fixed-term tenancies and move to “rolling” periodic tenancies. This will provide greater security for tenants while retaining the important flexibility that privately rented accommodation offers. Tenants will be able to stay in their home until they decide to end the tenancy by giving 2 months’ notice or the landlord can evidence a valid ground for possession.

Tenants won’t be able to end a tenancy within the first six months, unless the landlord agrees they can. After this, they can end the tenancy at any point, enabling tenants to move more easily when their circumstances change, for example to take up a new job opportunity, or the landlord is not fulfilling their obligations. Landlords won’t be able to use grounds for moving in, selling or redevelopment for the first 6 months of the tenancy, meaning responsible renters will enjoy enhanced security after moving into a property.

In the absence of section 21, it is critical that landlords have the peace of mind that they can regain their property when their circumstances change or tenants do not fulfil their obligations. Currently, many landlords struggle to recover properties when faced with anti-social behaviour and wilful non-payment of rent, and struggle to navigate the legal landscape. The Bill will introduce comprehensive, fair and efficient grounds to ensure landlords have confidence they can regain possession when it is reasonable. We will expedite landlords’ ability to evict those who disrupt neighbourhoods through anti-social behaviour and introduce a new ground for persistent rent arrears. We will also ensure landlords are able to sell or move into their property if needed, and that the student market is protected through bespoke grounds

Once section 21 is abolished, we need to ensure tenants do not face backdoor evictions, including through egregious rent rises designed to force them out. Nothing, however, in the Bill restricts landlords from raising rents to market value during a tenancy. This will require a landlord to complete a simple form - which we will publish on gov.uk – and serve this to the tenant. Tenants who receive a rent increase that they feel is not representative of the market value will be able to challenge the increase in the First-tier Tribunal. We will issue guidance on this process to ensure that it is clear for everyone. As now, landlords will be allowed to increase rents to market price for their properties and an independent tribunal will make a judgement on this, if needed. To avoid fettering the freedom of the judiciary, the tribunal will continue to be able to determine the actual market rent of a property.

The grounds for possession

We have undertaken a full review of existing grounds for possession, informed by the government consultation, A new deal for renting, which received almost 20,000 responses and subsequent engagement with stakeholders. The grounds cover all circumstances under which a landlord might reasonably expect possession.  

In the small proportion of tenancies where court action is required, landlords will need to provide evidence to the judge that the selected ground is met. Grounds can be either mandatory or discretionary. For mandatory grounds, judges must award possession when a landlord can evidence the ground is met. Discretionary grounds allow a judge to consider whether it is reasonable to award possession, even where the ground is met.

We have introduced of new grounds to support vital, specialist sectors. These allow repossession where it is critical that supply is available for new tenants, such as in temporary accommodation and agriculture, or where it would not be safe or viable to.

Table 1: Reformed grounds for possession

Ground	Explanation	Notice period	Mandatory or discretionary
Moving in	The landlord or their close family member wishes to move into the property.	2 months	Mandatory
Selling	The landlord wishes to sell the property.	2 months	Mandatory
Selling (rent-to-buy)	The landlord is a private registered provider of social housing and there is a rent-to-buy agreement.	2 months	Mandatory
Mortgage repossession	The property is subject to a mortgage and the lender exercises a power of sale requiring vacant possession.	2 months	Mandatory
Superior lease ending	A social or agricultural landlord’s lease is under a superior tenancy that is terminated by the superior landlord.	2 months	Mandatory
Superior lease ending	The landlord’s lease is under a superior tenancy that is more than 21 years and is coming to an end	2 months	Mandatory
Possession by superior landlord	After a superior tenancy ends, the superior landlord of a social housing provider or agricultural tenant becomes the tenant’s direct landlord, and seeks to take possession.	2 months	Mandatory
Possession by superior landlord	After a superior lease of more than 21 years ends, the superior landlord becomes the tenant’s direct landlord and seeks possession	2 months	Mandatory
Student accommodation	In the 12 months prior to the start of the tenancy the property has been used to house students. This can be used by educational establishments and PBSA only.	2 weeks	Mandatory
Property occupied by students	A property is occupied by full time students and the landlord intends to relet the property to new students in line with the academic year.	2 months	Mandatory
Ministers of religion	The property is held for use by a minister of religion to perform the duties of their office and is required for occupation by a minister of religion.	2 months	Mandatory
Agricultural workers	The landlord requires possession to house someone who will be employed by them as an agricultural worker.	2 months	Mandatory
Employment criteria	The social landlord requires the dwelling to let to someone based on their employment eligibility (e.g., key workers).	2 months	Mandatory
Employment by landlord	The dwelling was let as a result of the tenant’s employment by landlord, and the employment has come to an end OR tenancy was not meant to last the duration of the employment and the dwelling is required by new employee.	2 months	Mandatory
End of employment related criteria	The social landlord must have granted the tenancy because of the tenant’s employment eligibility (e.g., key workers) and they no longer meet those criteria.	2 months	Mandatory
Used for supported accommodation	The provider requires possession from a non-supported accommodation resident to relet as supported accommodation.	4 weeks	Mandatory
Supported accommodation (mandatory)	The provider requires possession because support services or funding has ended or fallen away; the provision is no longer meeting the tenant’s needs; the placement was ‘move on’ accommodation.	4 weeks	Mandatory
Stepping Stone Accommodation	A social landlord or charity lets to a tenant meeting specified eligibility criteria (e.g. under a certain age) at a discounted rent, to help them access the PRS and/or transition to living independently	2 months	Mandatory
Temporary Accommodation	The landlord is ending a tenancy granted because the household is owed the homelessness duty.	4 weeks	Mandatory
Redevelopment	The landlord is seeking possession to redevelop at least 6 months after start of tenancy. Must demonstrate changes cannot be done with the tenant living there.	2 months	Mandatory
Enforcement action	The landlord is subject to enforcement action by Local Authority or banning order by First-tier Tribunal and needs to regain possession to become compliant. Refused/Revoked HMO licenses etc.	2 months	Mandatory
Death of tenant	The tenancy was passed on by will or intestacy. Possession proceedings must begin no later than 24 months after death.	2 months	Mandatory
Severe ASB/Criminal Behaviour	The tenant convicted of a criminal offence, breached an IPNA, breached a criminal behaviour order, or convicted of causing noise nuisance.	Landlords can make a possession claim immediately	Mandatory
No right to rent	At least one of the tenants has no right to rent under immigration law.	2 weeks	Mandatory
Serious rent arrears	The tenant is at least 2 months in arrears at the time notice is served and the court hearing. Exemption for outstanding benefit payments.	4 weeks	Mandatory
Repeated serious arrears	Three separate instances of at least 2 months of arrears over a 3 year period.	4 weeks	Mandatory
Suitable alternative accommodation	Suitable alternative accommodation is available for tenant.	2 months	Discretionary
Any rent arrears	The tenant is in any amount of arrears when notice is served and on the day of their court hearing.	4 weeks	Discretionary
Persistent arrears	The tenant has persistently delayed paying their rent.	4 weeks	Discretionary
Breach of tenancy	The tenant is guilty of breaching one of the terms of their tenancy agreement.	2 weeks	Discretionary
Deterioration of property	The tenant has caused the condition of the property to deteriorate.	2 weeks	Discretionary
Anti-social behaviour	The tenant or anyone living in or visiting the property has been guilty of causing nuisance or annoyance to the landlord or anyone living in, visiting or in the locality of the property, or has been convicted of using the premises for illegal/immoral purposes, or has been convicted of an indictable offense in the locality.	Landlords can make a possession claim immediately	Discretionary
Domestic Abuse	Social landlords only. Evict the perpetrator of domestic violence if the partner has left the property.	2 weeks	Discretionary
Rioting	The tenant or other adult living at the property has been convicted of an indictable offence which took place at a riot in the UK after 13 May 2014.	2 weeks	Discretionary
Deterioration of furniture	The tenant has caused the condition of the furniture to deteriorate.	2 weeks	Discretionary
False statement	The tenancy was granted due to false statement.	2 weeks	Discretionary
Supported Accommodation (discretionary)	The tenant has unreasonably refused to cooperate with the support service provided.	4 weeks	Discretionary

Tenancy reform: frequently asked questions

How does a private landlord currently evict a tenant? 

• Private tenancies are governed by the Housing Act 1988.
• Landlords must serve a legal notice to end a tenancy. If the tenant does not leave, the landlord must go to court, which can instruct bailiffs to enforce eviction.
• Currently, a landlord can evict a tenant without providing any reason – a  section 21 eviction. This requires the landlord to give the tenant two months’ notice. After this, it is always mandatory for the court to order eviction of the tenant if the tenant does not leave during the notice period.
• Landlords may also seek possession using section 8 grounds – a list of circumstances defined in law in which a landlord can evict a tenant, for example due to rent arrears. If a tenant does not leave during the notice period, a landlord must prove to a court that the ground applies.

What problems are the reforms intended to solve? 

• Section 21 means a landlord can evict a tenant in any circumstance. This makes some tenants feel insecure in their homes, with unexpected evictions causing financial difficulty and interrupting employment and schooling.
• Evidence shows that some rogue landlords use section 21 to evict tenants who complain about legitimate problems with a property they are renting. This means many tenants do not raise issues for fear of eviction through a section 21 order.
• The existing system does not work for responsible landlords either. Many struggle to recover properties when faced with anti-social behaviour and wilful non-payment of rent and struggle to navigate the legal landscape.

How will a landlord end a tenancy in the future? 

• The Renters (Reform) Bill will remove section 21 evictions, while strengthening landlords’ other rights of possession.
• Landlords will be able to end a tenancy in specific circumstances defined in law. The grounds for possession are outlined in Table 1 above and cover all circumstances a landlord might reasonably expect possession.
• Where a landlord seeks possession using section 8 grounds, the process to end a tenancy will be similar to the current process of using section 21. Landlords will need to serve the notice on the prescribed form to their tenant with the required notice period. Landlords will need to go to court if a tenant does not leave and provide evidence that the ground applies.

Will the county courts be ready for these reforms?

• We will ensure that the necessary changes to court processes and systems are made, so that they are prepared for our reforms.
• These are the biggest change to the sector in 30 years. We are phasing implementation so that the courts have time to adjust, and users can benefit from a new possession system.
• We have already invested £1.2 million for HMCTS to deliver a new end-to end online possession process.
• We are also improving bailiff enforcement by enhancing recruitment and retention practices and ensuring the court system has the capacity to handle new possession cases.
• We are exploring whether serious cases, such as anti-social behaviour, can be prioritised in court listings and we will consult on options following Royal Assent.

How will a tenant end a tenancy once the reforms are implemented?

• A tenant will be able to end a tenancy by giving 2 months’ notice. The end date of the tenancy will need to align with the end of a rent period.
• A tenant will not be able to end a tenancy in the first 6 months, unless the landlord has agreed they can.
• After the first 6 months, a tenant can end the tenancy at any point, as long as they serve the 2 months’ notice.

What evidence will a landlord need to provide? 

• If a tenant does not leave when an eviction notice is served, a landlord will need to prove to a court that they are seeking possession for one of the reasons specified in legislation. We will issue guidance to support landlords in this.
• To ensure maximum flexibility for landlords, we will not mandate what evidence is needed. As an example, a landlord might show they have instructed an estate agent and solicitor if they wished to prove they were selling a property.

Will a landlord be able to increase rents in the new system?

• Yes. In the new system, all rent increases will be via one mechanism which replicates the existing section 13 process. This will require a landlord to complete a simple form, which we will publish on GOV.UK, and serve this to the tenant.
• Once the form is served, the landlord will not have to take further action. If the tenant accepts the proposed rent increase, they simply need to pay the new amount on the next rent day.
• A tenant can dispute the increase through referring a case to the First-tier Tribunal, if they think it is above market rate. This must be before the starting date of the proposed new rent and tenants should notify their landlord that they are doing so.

In what circumstances will a tenant be able to challenge excessive rent increases?

• Tenants will be able to dispute rent increases that they think are above the market value by referring a case to the First-tier Tribunal.  This must be before the starting date of the proposed new rent and tenants should notify their landlord that they are doing so.

When will the tenancy reforms be implemented?

• We will implement the new system in two stages to ensure all stakeholders have sufficient notice to implement the necessary changes.
• We will provide at least 6 months’ notice of our first implementation date after which all new tenancies will be periodic and governed by the new rules. The date of this will be dependent on when Royal Assent is received, and when the court system is ready to implement the new system.
• To avoid a two-tier rental sector and to make sure landlords and tenants are clear on their rights, all existing tenancies will transition to a new system on the second implementation date. After this point, all tenants will be protected from section 21 eviction and landlords will have access to a full range of strengthened grounds. We will allow at least twelve months between the first and second date.

Will these reforms apply to students?

• We recognise that the student market operates differently to other parts of the private rented sector. We will introduce a new ground for possession which will allow landlords renting to students to seek possession ahead of each new academic year, facilitating the yearly cycle of short-term student tenancies. This will mean students can sign up to a property in advance, safe in the knowledge they will have somewhere to live while studying.
• We will exempt private purpose-built student accommodation (PBSA) who have joined government approved codes from our tenancy regime, with tenancies governed by the Protection from Eviction Act 1977 instead, as with university-owned accommodation.

How will non-PRS sectors be affected by the new system?

• This tenancy system is used by landlords outside the PRS – including private registered providers (PRPs) of social housing (typically housing associations) and providers of supported accommodation, as well as landlords providing temporary accommodation to homeless households.
• These reforms have taken into consideration the impact on these critical sectors. We have balanced providing maximum security to all tenants with ensuring specialist sectors can continue to house some of the most vulnerable households.
• Tenancies offered by PRPs will follow the same rules as private landlords, to ensure social tenants benefit from the same protections and flexibilities as their private counterparts.
• However, the supported accommodation sector may need to take back possession for a range of important reasons, such as funding ending or unexpectedly dropping away, or where a tenant’s care needs have changed. We are therefore introducing new grounds to enable the sector to provide safe tenancies and to make best use of their placements.
• Landlords will also be able to take back possession where they have been working with local councils to give tenancies to households are statutorily homeless.  This will ensure temporary accommodation remains available to those who most need it.

Private Rented Sector Landlord Ombudsman

Through the Renters (Reform) Bill, the government will introduce a new Private Rented Sector Landlord Ombudsman Service, which will be mandatory for nearly all private landlords. Landlords with assured and regulated tenancies will be required to join, including those who use a managing agent. The new Ombudsman will give tenants the tools to challenge their landlord without the need to go to court and will provide private tenants the same access to redress as is the case in other essential services and markets.

The Ombudsman will allow tenants to seek redress for free, where their landlord has failed to deal with a legitimate complaint about their tenancy. This could include complaints about the behaviour of the landlord, the standards of the property or where repairs have not been completed within a reasonable timeframe. The Ombudsman will have powers to put things right, including compelling landlords to issue an apology, provide information, take remedial action, and/or pay compensation of up to £25,000.

Landlords will benefit from the Ombudsman through having access to an impartial decision-maker who can resolve complaints in the quickest and most cost-effective way possible. This will help maintain tenant-landlord relationships and ultimately sustain tenancies. Landlords will also have access to training, guidance, and support from the Ombudsman to help them improve their services and complaint handling practices.

As well as resolving individual disputes, the Ombudsman will tackle the root cause of problems, address systemic issues, provide feedback and education to members and consumers, and offer support for vulnerable consumers.

Membership of the Ombudsman will be mandatory for private landlords. Local councils will be able to take enforcement action against those who fail to join. This will range from a civil penalty of up to £5,000, through to a £30,000 fine or criminal prosecution and the potential for a Banning Order for repeat offenders.

In keeping with standard practice, it will also be mandatory for landlords to comply with any decision of the Ombudsman, should the complainant accept the final determination. Failure to comply with a decision may result in a landlord being expelled from the Ombudsman until they do so. If they continue to act as a landlord, this will make them eligible for enforcement action from their local council.

Private Rented Sector Landlord Ombudsman: frequently asked questions

When will the Ombudsman be introduced and landlords be expected to sign-up? 

• The Ombudsman will be introduced as soon as possible after Royal Assent.
• Landlords will be given plenty of notice of the date by which they will be required to sign up to the Ombudsman and sufficient time to make appropriate arrangements.

How will a tenant challenge their landlord using the Ombudsman and what powers will the Ombudsman have to help tenants resolve their complaints?

• Tenants will usually be expected to raise any complaint with their landlord in the first instance, giving them reasonable time to correct an issue or concern.
• If the tenant is unhappy with the way the landlord has handled their complaint, they can escalate this to the Ombudsman, either online or by telephone, who will independently and impartially investigate and have the final say.
• Should the Ombudsman agree with the tenant that the landlord acted unreasonably or unprofessionally in handling their complaint, the Ombudsman will be able to tell a landlord to take or cease taking an action, issue an apology or explanation, and / or award compensation to put things right.

What types of complaint will the Ombudsman consider?

• Broadly, the Ombudsman will consider complaints from tenants regarding actions, inactions or behaviours of a landlord which has caused harm or inconvenience.
• The types of complaint that the Ombudsman will consider are not included on the face of the Renters (Reform) Bill as this will allow the Ombudsman sufficient discretion to take into account the individual circumstances of each complaint.

Will landlords be able to complain to the Ombudsman about their tenants?

• No. Ombudsman schemes provide a free and impartial route for consumers to seek redress against member businesses. Their role is to protect consumer rights. Therefore, only tenants will be able to complain to the Ombudsman.
• The Ombudsman will not favour tenants or landlords. Both parties will benefit from an impartial decision maker resolving disputes, which should ultimately help maintain good landlord-tenant relationships and sustain tenancies.
• The government is committed to ensuring that landlords, like tenants, have appropriate access to alternative dispute resolution. Where possible and appropriate, we encourage landlords to consider using mediation, to reach a mutually acceptable agreement to resolve issues and disputes.

How will a landlord sign up to the Ombudsman and what happens if they don’t?

• All landlords will be legally required to join the Ombudsman. They will be able to do this quickly and easily online, by telephone or through an alternative offline registration process.
• As a minimum, landlords will be asked for their name, contact information, address, and private rented property details. We are exploring ways for landlord sign-up to align with registration on the Privately Rented Property Portal, so landlords are only required to submit the same information once.
• If a landlord breaches their ombudsman membership requirement, they can be fined up to £5,000 by the local council. If a landlord repeatedly breaches the requirement, they may be fined up to £30,000 and could face criminal prosecution and a Banning Order.

Will landlords be required to pay for the mandatory redress scheme?

• Yes. The fee will pay for the operation of the Ombudsman to ensure a good service is delivered. We will work to make sure that the fee is proportionate and good value. The fee will be a relatively small amount per property.

Will the new Ombudsman scheme cover lettings agents?

• No, the remit of the private rented sector landlord Ombudsman scheme will not include lettings agents.
• All lettings agents and property managers are already required to be members of one of two existing redress schemes, The Property Ombudsman (TPO) or The Property Redress Scheme (TPRS).
• Including lettings agents within the remit of the new private rented sector landlord Ombudsman would risk duplication and involve legal and practical challenges.

If tenants deal with landlords and letting agents, how will they know whether to complain to the new PRS Landlord Ombudsman or one of the existing agent redress schemes?

• We want to ensure that, where it is not clear which scheme a tenant should complain to, there is no wrong access point for tenants.
• The schemes will be expected to work together to ensure that, regardless of where a tenant raises a complaint, it is effectively triaged and referred on to the right body with minimal input from the complainant.
• Where a complaint falls under the jurisdiction of more than one redress scheme, the provision for cooperation in the Bill will allow schemes to conduct joint investigations and, where appropriate, issue joint decisions.

Will landlords who use an agent to manage their property need to join?

• Yes. Landlords who use managing agents are still responsible for their own behaviour and still retain legal obligations to tenants – particularly around standards and repairs.
• If there is a problem with the tenancy and a managing agent is at fault but the landlord is not, landlords will not hold the responsibility for the agent’s actions. Tenants and landlords will still be able to complain about agents and receive redress through the existing agent redress schemes.
• What is the difference between the Ombudsman, the First-tier Tribunal and local councils?
• The Ombudsman will provide fair, impartial, and binding resolution to many issues relating to property standards, repairs, maintenance, and poor landlord practice and behaviour in the sector. We are designing the Ombudsman to fit seamlessly within the existing system and it will complement, not duplicate, the work of local councils and the courts system.
• The First-tier Tribunal is part of the courts system. The Ombudsman may reject cases where it is deemed more reasonable, fairer, or more effective to handle through court. The Ombudsman will not consider cases where the issues are, or have been, already considered by the First-Tier Tribunal as this would be duplicative.
• Local councils play a role in enforcing a minimum regulatory standard. The Ombudsman is not an enforcement or regulatory body but instead focuses on protecting tenants’ consumer rights and providing a route to redress where a landlord has failed to put something right for a tenant following a legitimate complaint.

Which organisation will take on the role of the new Ombudsman?

• The Bill allows for the Ombudsman to be delivered by an existing redress provider and the government’s preferred approach at this time is for the existing Housing Ombudsman Service to deliver a streamlined service for both social and private tenants.
• The Housing Ombudsman Service has extensive experience in tenant-landlord redress on a scale comparable with what is needed for private rented sector landlord redress.
• The government will ensure that any approved provider can offer a high-quality service to tenants as well as value for money to landlords.

Privately Rented Property Portal

The Renters (Reform) Bill will introduce a new Private Rented Sector Database, which will support the future digital Privately Rented Property Portal service. All landlords will be legally required to register themselves and their properties on the Property Portal and could be subject to penalties if they market or let out a property without registering it and providing the required information.

The Property Portal will provide a ‘one stop shop’ for landlords allowing them to access relevant guidance through a single ‘front door’. This will provide the basis for an effective service, helping landlords understand their obligations and demonstrate compliance. The Property Portal will also be used for communicating changes to requirements – ensuring landlords have access to simple up-to-date information about their responsibilities.  

For tenants, the Property Portal will increase transparency and the information available before they decide to rent a property and throughout their renting journey. This will allow them to take effective action to enforce their rights and be aware when they can escalate issues with their property to their local council or the Private Rented Sector Ombudsman.   

The Property Portal will also provide local councils with more data about private sector properties. One of the biggest and most time-consuming barriers faced by local councils is identifying poor quality and non-compliant private rented sector properties and who owns them. The Property Portal will provide a trusted and consistent intelligence source which will remove unnecessary, frustrating administration, meaning council staff will be able to focus on enforcement against criminal landlords. 

Privately Rented Property Portal: frequently asked questions

How will a landlord sign up to the Property Portal and what happens if they don’t?

• All landlords will be legally required to register their property on the Property Portal. They will be able to do this online.
• For those who are unable to register online, we will offer advice telephone lines and alternative offline ways for registrations to be processed.
• Local councils will be able to take enforcement action against private landlords that fail to join the Property Portal.  If a landlord lets or advertises a property without it first being registered on the Property Portal, they can be fined up to £5,000 by the local council. If a landlord repeatedly breaches the requirement, or if they commit a serious offence such as providing fraudulent information to the Property Portal, they may be fined up to £30,000 or could face criminal prosecution and a Banning Order.

Who will pay for the Property Portal? How much will it cost landlords?  

• Landlords will be required to pay for to registered for the Property Portal. However, we will work to ensure that the fee is proportionate and good value.

What information will be available to the public on the Property Portal?    

• We are still determining the exact information which will be available to the public and this will be set out in regulations.  We are planning for this to include information related to property standards.
• We are committed to carefully balancing landlords’ privacy concerns with private tenants’ need to make informed decisions about their housing options when designing a new system. Tenants will be able to access necessary information in relation to their landlord’s identity and details of the property, but we do not envisage that all data will be publicly accessible.

How will the Property Portal interact with the Database of Rogue Landlords?  

• We intend for the Privately Rented Property Portal to replace the functionality of the Database of Rogue Landlords relating to private sector landlords.
• We will make certain details relating to offences viewable to tenants and prospective tenants. Opening up this information will ensure tenants can make a more informed rental decision – leading to a better rental experience. However, we will also ensure that this aim is proportionate to landlords’ right to privacy.

Will the introduction of the Property Portal mean the end of selective licensing?

• Selective licensing remains a valuable tool when used appropriately and combined with other measures. It enables local authorities to target the improvement of standards and safety in areas suffering from issues such as poor housing quality, high levels of deprivation and anti-social behaviour. It has the ability to drive better outcomes for local residents, tenants and responsible landlords.
• Our plans to deliver a Property Portal will provide access to information about privately rented properties and tackle one of the biggest and most time-consuming barriers faced by local councils when enforcing standards – identifying poor quality and non-compliant properties and who owns them.
• We will work with local councils to gather more information about their selective licensing schemes to ensure the schemes are continuing to deliver the intended outcomes.

When will the Property Portal be launched?

• The Portal is currently undergoing digital development and we aim for the service to be operational as soon as possible following the passage of primary and secondary legislation.
• The next stage of development will be the ‘Beta phase’, which will involve building and testing iterations of the service. This technical development will also inform the policy content for the regulations.
• We will continue to engage with stakeholders and users as we take forward the development of the service and we will conduct extensive testing of the new service ahead of the legal requirement for private residential landlords to register on the Property Portal coming into force.

Prohibiting blanket bans

Blanket bans on letting to families with children or people who receive benefits have no place in a fair and modern housing market. Everyone in the private rented sector is entitled to a safe and decent home and prospective tenants should be considered on an individual basis.

The Renters (Reform) Bill will take direct action to address blanket ban practices in the private rented sector. It will address both overt discriminatory practices, such as ‘No DSS’ adverts, and situations where landlords or letting agents use other indirect practices in order to prevent someone entering into a tenancy.

Landlords and agents will continue to have the final say on who they let their property to and can carry out referencing checks to make sure tenancies are sustainable for all parties. They will be able to do this  based on affordability, but not on the basis the prospective tenant has children or is in receipt of benefits.

We have worked closely with the Welsh and Scottish Governments to extend Blanket Bans provisions to England, Wales and Scotland through the Renters (Reform) Bill

Prohibiting blanket bans: frequently asked questions

Won’t landlords just choose someone else as a tenant?

• We want landlords and agents to consider every applicant for a tenancy on their individual circumstances and ability to afford and sustain a tenancy.
• That is why landlords and those acting on their behalf will be in breach of the prohibitions if they turn away a prospective tenant on the basis the person has children or is in receipt of benefits.
• We will work with the sector to improve and share resources to ensure landlords and agents understand what is expected of them.

What about if properties aren’t suitable for children? 

• Landlords and agents should consider applicants on their individual circumstances.
• ‘No children’ blanket bans may be permitted if a landlord can show a ban is a proportionate means of achieving a legitimate aim. A legitimate aim could be to adhere to overcrowding regulations, in which case it may be proportionate for the landlord to ban all tenants with children.
• Whether an aim is legitimate and a ‘no children’ ban is proportionate is best judged on a case-by-case basis and landlords should be able to evidence their decision.

My mortgage/ lease says I can’t let to those in receipt of benefits or with children, what happens then?

• Our measures ensure that terms in mortgages and superior agreements which restrict the letting of a property to private renters without children or who do not receive benefits are of no effect, preventing any breach of contract where a landlord fails to fulfil them.
• Therefore, a landlord cannot be compelled to use a blanket ban by their mortgage or superior landlord agreement.
• A superior landlord may include restrictive terms on letting to those with children if it is a proportionate means of achieving a legitimate aim.

My insurance contract says I can’t let to those in receipt of benefits or with children. What should I do?

• Existing insurance contracts that begin before the legislation comes into force will be exempt from the provisions until the insurance contract comes to an end or is renewed.
• Many insurance companies already offer services to landlords who rent to tenants with children or receiving benefits.
• Any restrictive terms in a new insurance contract following the legislation coming into force will be of no effect, preventing any breach of contract.

When will you implement the blanket ban prohibition? 

• Following Royal Assent of the Renters (Reform) Bill, we will allow time for a smooth transition to the new system. We will support tenants, landlords and agents to understand and adjust to the new rules, while making sure that people who receive benefits and families with children can benefit from the reforms as soon as possible.
• We are engaging with the sector on the implementation of the blanket ban provisions and will provide more information in due course.

How will this be enforced in England?

• We are giving local councils powers to fine landlords and anyone acting directly or indirectly on their behalf up to £5,000 for breaches. Those issued with a financial penalty will be able to appeal the fine at the First-tier Tribunal.
• Fines can also be issued for continued and repeat breaches.
• Our enforcement system will keep all routes to justice open for tenants. Prospective tenants will be able to pursue a breach through their local council or through the courts and seek redress through the new Private Rented Sector Landlord Ombudsman and letting agent redress schemes.

Which nations do the blanket bans provisions apply to?

• We have worked closely with the Welsh and Scottish Governments to extend the blanket bans provisions to England, Wales and Scotland through the Renters (Reform) Bill.
• As housing is devolved and enforcement mechanisms vary, the penalty for a breach of blanket bans provisions in Wales and Scotland will be a criminal offence in line with the wider housing framework of the devolved administrations.

Renting with pets

Pets can bring a huge amount of joy to their owners. We are committed to supporting responsible pet ownership in the private rented sector. The Renters (Reform) Bill will ensure landlords do not unreasonably withhold consent when a tenant requests to have a pet in their home, with the tenant able to challenge unfair decisions.

We know that some landlords are concerned about potential damage caused by pets. That is why the Renters (Reform) Bill will allow landlords to require insurance covering pet damage.  This will provide landlords with reassurance that any damage caused by a pet can be taken care of, and that the responsibility for preventing and resolving damage caused by a pet will fall to the tenant.

We will publish guidance for landlords and tenants before the new rules come into effect.

Renting with pets: frequently asked questions

What is it reasonable for a landlord to refuse a tenant having a pet?

• Landlords will be required to fully consider all requests on a case-by-case basis. Due to the diversity of landlords, tenants, and properties in the private rented sector, it would not be possible to legislate for every situation where a landlord would or would not be able to ‘reasonably’ refuse a pet.
• There are situations where it will always be reasonable for a landlord to refuse a request – including where their superior landlord prohibits pets. We will provide guidance to landlords and tenants to support decisions.
• Where there is disagreement, a tenant can escalate their complaint to the Private Rented Sector Ombudsman or through the court which makes the final decision based on the evidence provided by both parties.

What happens if a landlord unreasonably refuses?

• Where a tenant feels that a landlord has unreasonably refused their request, they will be able to escalate their complaint to the Private Rented Sector Ombudsman or they could take the case to court.
• The Ombudsman or court will make the final decision based on the evidence provided by both parties.

What happens if a pet damages a property?

• We are amending the Tenant Fees Act 2019 so that landlords can require insurance to cover any damage caused by pets living in the property.
• Tenants also pay a tenancy deposit which can be used for damages although landlords should not attempt to recover costs twice for the same damage.
• In the very rare cases where the insurance and deposit do not cover the cost of the damage, a landlord could take the tenant to court to recoup additional funds in line with wider rules in the sector.

When will the changes be implemented?

• We will implement the new system in two stages, ensuring all stakeholders have sufficient notice to implement the necessary changes.
• We will provide at least six months’ notice of our first implementation date after which all new tenancies will be periodic and governed by the new rules including the changes to renting with pets. The date of this will be dependent on when the Bill has received Royal Assent.
• To avoid a two-tier rental sector and to make sure landlords and tenants are clear on their rights, all existing tenancies will transition to a new system on the second implementation date. We will allow at least twelve months between the first and second date.

Decent Homes Standard

Everyone deserves to live in a safe and decent home. This is why we are introducing a Decent Homes Standard (DHS) in the private rented sector for the first time.  Applying a DHS to privately rented homes will ensure tenants benefit from homes that are safe and decent. It will also support the government’s ambition to reduce the number of non-decent rented homes by 50% by 2030.

The Renters (Reform) Bill will allow regulations to be made setting out DHS requirements for private rented sector homes and will provide local councils with effective and proportionate enforcement powers.  It is imperative that we get the content of the new standard right – ensuring it is both proportionate and fair. We are working closely with stakeholders to co-design the standard and will set out our proposals in due course.

We know that the majority of landlords already provide decent housing and a good service for their tenants. The DHS will help landlords by clarifying requirements and establishing a level playing field, backed up by consistent enforcement.  

Decent Homes Standard: frequently asked questions

Which PRS properties will be required to meet the DHS? 

• The Decent Homes Standard will apply to the vast majority of private rented homes, including all PRS homes let on assured tenancies. The standard will also apply to privately rented supported housing occupied both under tenancies and licences. This means that most tenants will benefit from the new standard.
• The Bill also includes a power to extend the scope to include other types of tenancies and licences. This will allow us to respond to changes in the sector or evidence of poor condition in some PRS property types that are not covered by the standard.

What new requirements will PRS properties have to meet? 

• It is imperative that we get the new standard right – ensuring it is both proportionate and fair. We are working closely with a range of stakeholders to co-design the standard and make sure the balance is right between landlords and tenants. We will set out our proposals for the standard in due course.

How much will it cost landlords to upgrade their properties to meet the Decent Homes Standard? 

• We are carefully considering the content of the standard to make sure it strikes the right balance for landlords and tenants. For most PRS properties, our expectation is that the landlord will not need to do any additional work to meet the DHS, beyond what is needed to meet existing requirements and keep their properties in a good state of repair.

What is the timetable to apply the Decent Homes Standard to the private rented sector?

• We recognise that landlords and local councils will need time to adjust to the requirements. There will be a suitable transition period following consultation on that standards and regulations being set.

Enforcement and investigatory powers

The reforms we are introducing will be underpinned by an effective, consistent and proportionate enforcement framework. We are extending councils’ powers to collect and retain revenue for future enforcement work from financial penalties against landlords who flout the rules.

Initial or minor non-compliance will incur a civil penalty of up to £5,000 and serious, persistent or repeat non-compliance a civil penalty of up to £30,000, with the alternative of a criminal prosecution.

We are providing councils with a range of new investigatory powers which will allow them to enforce our new reforms, including powers to require information from relevant persons and any persons and powers of entry to business and residential premises.

In accordance with the New Burdens Doctrine, we will ensure that, where necessary, the net additional costs that may fall on local councils as a result of our proposed reforms are fully funded.  

Enforcement and investigatory powers: frequently asked questions

What’s changing on enforcement?  

• We’re extending civil penalties, placing a new duty on councils to take enforcement action and enhancing their powers of investigation to make that easier.
• Local councils will be able to issue civil penalties against landlords who fail to comply with our reforms – for example if they fail to register on the Property Portal or with the Ombudsman or abuse the new grounds of possession.
• First or minor non-compliance will incur a civil penalty of up to £5,000 and serious or repeat non-compliance a civil penalty of up to £30,000.
• For serious and repeat non-compliance, local councils will alternatively be able to pursue a criminal prosecution with an unlimited fine.
• For the first time, local councils will also be able to issue civil penalties against landlords who evict their tenants illegally.
• We are introducing enhanced investigatory powers that will make it easier for local councils to obtain financial information from landlords when seeking to build a case against them for suspected abuses.
• We are extending rent repayment orders to superior landlords in rent-to-rent arrangements and increasing the maximum amount a landlord can be ordered to pay from 12 to 24 months’ rent.
• We are exploring a national framework for setting fines based on clear culpability and harm considerations, supporting a consistent approach to fine setting and reducing the likelihood of reductions on appeal.

What are the new investigatory powers?

• The Renters (Reform) Bill introduces new investigatory powers to help to support local authorities tackle criminal landlords.
• These powers are modelled on existing powers available for local trading standards, for example to support the enforcement of letting and estate agent legislation.
• The Bill provides a power to require information from third parties such as banks, accountants and client money protection schemes, as an additional route to get vital evidence to build cases.
• It also includes the power to enter business premises and – in more limited circumstances – residential premises to obtain on-site evidence. Often essential evidence, such as email exchanges, text messages, bank statements and tenancy agreements, are held on business premises.
• These powers will be available for breaches relating to the new Bill and wider housing legislation.

What is changing on rent repayment orders?

• The Renters (Reform) Bill increases the maximum amount that a landlord can be ordered to repay from 12 months’ to 24 months’ rent.
• The Bill also extends liability for rent repayment orders to superior landlords as well as well as the immediate landlord. (a superior landlord is a landlord but not one with an immediate link to the tenants in the property, for example because they have granted a lease to another individual who then rents it to tenants).
• The changes we are making means the Tribunal can make larger rent repayment orders that are more likely to deter landlords where there is serious criminal behaviour. They ensure that all landlords who are culpable of the offence can be penalised.

Published 17 May 2023