On 17 May 2023, the Government published its much-anticipated Renters (Reform) Bill. Already, there has been talk that the Secretary of State, Michael Gove, is considering backtracking on onerous reforms affecting student lets. But assuming the current draft is enacted, what does it mean for the social housing sector? What are the key changes housing associations need to be aware of?
Here are five things we could soon be saying hello and goodbye to.
There will be no such thing as a fixed-term assured tenancy. These will be abolished and replaced by periodic assured tenancies with a maximum rent period of 28 days.
Any fixed-term tenancy that is longer than 7 years will cease to be an assured tenancy. That means the procedure for gaining possession for those will be through forfeiture, not the Section 8 Grounds for Possession.
Announcing the Bill, the Government referred to the reforms as a “once-in-a-generation overhaul of housing law”. If a generation is around 30 years, then perhaps nowhere is that claim more apt than in the abolition of assured shorthold tenancies. Introduced in 1988, the assured shorthold tenancy turns 35 this year.
The most significant consequence of the reform is to remove landlords’ ability to gain possession by serving so-called 'no fault' Section 21 notices.
Another consequence of assured shorthold tenancies departing the scene is that it will no longer be possible to offer a starter tenancy to a new tenant. Without assured shorthold tenancies, there can be no starter period with less security of tenure.
You can find a useful summary of the revised grounds for possession and notice periods in Annex B of the Explanatory Notes to the Bill.
As well as a new form of NOSP, which will be published by regulations, there will be new minimum notice periods.
The Bill is only at the first reading stage in the House of Commons, so the extent to which the proposed changes become law remains to be seen. But the indications are that housing associations will need to make wholesale changes to their tenancy agreements and policies and procedures (particularly around starter tenancy periods and what grounds you will/can use).
If you would like advice on your existing agreements or any other aspect of housing management, contact us today to speak to a member of our team.