Market update: How the new government legislation will affect landlords

A man signing a rental agreement

In the past few months, the government have made their plans to “level up” parts of the country a much greater priority. While this drive will hopefully address issues such as infrastructure and job opportunities in the underdeveloped parts of the UK.

A key part of this agenda involves wide-reaching changes to the power of private landlords, so read on to find out what these new measures could mean for you.

A recent government report states that 1.6 million Brits could be living in unsafe homes

One important piece of new legislation announced in the Queen’s speech in early May was the new Renter’s Reform Bill. As part of the Department for Levelling Up, Housing, and Communities’ (DLUHC) wider reforms, the government hopes this will improve the lives of millions of Brits.

In June, the DLUHC published a white paper titled “A fairer private rented sector”, which outlined their plans to level up the country.

While the report notes that 88% of private rented homes are of good quality, a significant number of properties failed to meet the government’s health standards. This means that around 1.6 million people are living in houses that could pose a risk to their physical and mental wellbeing.

While this legislation hopes to improve the quality of this sub-standard housing, it also gives tenants much stronger powers than they had previously, which could create a headache for landlords.

The new bill will radically change the relationship between landlords and tenants

The new Renter’s Reform Bill plans to radically rebalance the relationship between landlords and their tenants. Some of the changes set out in the legislation include:

The end of “no fault” evictions

Section 21 evictions, which allow landlords to end tenancies without giving a reason will be outlawed.

Outlawing blanket bans for renting with pets

The bill gives tenants the right to request the option to keep a pet in their house, which the landlord cannot unreasonably refuse.

Ending arbitrary rent reviews

This measure is designed to give tenants stronger powers to challenge landlords on poor practices, such as unjustified rent increases.

A new Private Renters Ombudsman

This new body is being created to mediate disputes between renters and landlords more quickly, at low cost, and without having to go to court. The government hopes this will ensure landlords can more easily regain possession of their properties from antisocial tenants.

Work with an expert

While some of the changes introduced by the new bill are certainly positive for landlords, these new rules definitely introduce some uncertainty into the rental market. At a time when many are still recovering from the impact of the pandemic, the prospect of further volatility could be very stressful.

At a time when everything is up in the air, knowing that your properties are protected against unexpected issues can give you greater peace of mind. Cover can help to ensure that no matter what the future holds, you’ll be able to overcome it.

If you want to find the cover that’s right for your needs, get in touch and we can help. Email or speak to a member of our expert team on 0207 382 7710.


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