Government White Paper

GOVERNMENT WHITE PAPER JUNE 2022 “A FAIRER PRS”

“Fairer Private Rented Sector” White Paper from the Department of Levelling Up, Housing and Communities. The recent White Paper from the Government, delivered on 16th of June 2022, represents the biggest overhaul of the Private Rented Sector (PRS) in the last three decades. It has been coming for a while and parts of its content have been on our radar since 2019. Some elements have caused quite a stir and there are even parts that have caused division in our own team, in the office, here at KPA HQ.

So, what’s it all about? Let’s take a closer look:

Firstly, what is a White Paper?

A White Paper is a policy document, produced by the Government, that sets out their proposals for future legislation. There will now be further consultations and discussions, with interested and affected groups and parties and final changes, before a Bill is formally presented to Parliament. This particular White Paper, has been on our radar since 2019 and there are certain elements of it that we’ve been fairly certain would be included. The Paper itself is 86 pages long and you can find the original document here at: https://www.gov.uk/government/publications/a-fairer-private-rented-sector

Where something is going to have a major impact on your business, it would always be our advice to not only listen to well informed parties, but to research and read for yourself, to get a broader understanding of all the facts involved.

All interested parties, such as the NRLA, ARLA Propertymark, Shelter etc., will now be in discussions with the Government regarding the finer detail of the document, which they had sight of before publication.

There are 10 major points in the paper, let’s have a look at them now:

• Periodic tenancies. The proposal here is to convert Assured and Assured Shorthold Tenancies to a single structure, where tenants can terminate a tenancy with 2 months’ notice and Landlords with a“legitimate reason.” As there will be a complete overhaul of Section 8, these “legitimate reasons” are subject to change and addition.

• Abolition of the so called “no fault eviction” Section 21. With the introduction of new possession grounds for Landlords and a complete overhaul of Section 8.

The wording here is worth noting: “We will reform grounds of possession so that they are comprehensive, fair, and efficient, striking a balance between protecting tenants’ security and landlords’ right to manage their property. • Create a new Private Renters’ Ombudsman to settle disputes informally • Extend the Decent Homes Standard to the sector (to include a review of the

HHSRS, due to conclude in Autumn 2022) • The Introduction of a new Property Portal to support Landlords (with compliance, regulations etc.) and to provide information on rogue landlords • Abolition of Rent Review Clauses in contracts (where tenants are locked into automatic increases). “Rent adjustments should be predictable and allow time for tenants to consider their options…once a year…notice of increase to be 2 months.” • Gratifying to hear was the statement that

“…this Government does not support the introduction of rent controls…” As this was something causing concern for many landlords, especially those in Bristol, following the recent (March 2022)

Renters’ Summit, where there were wholescale calls for rent controls and a flat rate across the city. • Outlaw blanket bans on renting to families with children or tenants on benefits, by landlords and agents, with restrictions like “No DSS”, “No Benefits” or “Working professionals Only.” Making it illegal for landlords or agents to have blanket bans onrenting to families with children or those in receipt of benefits.

• Incentivise landlords to accept tenants with pets, by making it easier for landlords to accept pets by amending the Tenant Fees Act 2019, to include pet insurance as a permitted payment.

Landlords should not “unreasonably withhold consent…tenants to be able to challenge a decision.” • Reform and speed up the court process.

Looking at “…areas that frustrate and hold up possession proceedings…” (bailiffs, paper based proceedings, prioritization).Passporting Deposits to bridge the period where deposit requirements overlap, with “market led solutions…,” like loan and insurance products.

In conclusion:

This is a White Paper, it’s not law yet and there will be many “hoops” for it to “jump” through before it becomes law and many interested parties making suggestions and, no doubt, many changes to be made. It’s important to seek out good quality information and not to listen to those who “sell by fear”; nothing is insurmountable, and we will all be playing with the same hand here, in terms of adhering to the “new normal.” If it flushes out the cowboys, leaving opportunities for those in the sector who are diligent and like to do things properly, then that must be a good thing surely. And, lastly – be compliant, be well informed and, if in doubt, ask – we will have our eyes all over this one here at KPA and will bring you the news of the changes as they happen, until then, if you have a question, a query or are just unsure about any aspect, then just give us a shout! 23