A new Bill which will fundamentally change the way renting residential property in the UK works is currently going through its second reading in the House of Commons.

If enacted, Assured Shorthold Tenancies will be scrapped and all new tenancies will be Assured Periodic Tenancies. The Section 21 ”No fault” process for recovering possession will no longer exist and so landlords will only be able to recover possession by using the existing Section 8 procedure and proving their ground for recovery of possession.  It is proposed that new grounds for recovery of possession will be added including where the landlord wishes to sell the property.

It is also intended to bring in more comprehensive grounds to provide landlords with the ability to recover possession when faced with anti-social behaviour and the non-payment of rent from their tenants. The right to recover possession where a tenant is in arrears will be strengthened so that it can be used where the tenant has been in arrears three times in a three year period. That will however be subject to a longer notice period before a claim can be issued.

There are changes proposed to the way in which a landlord can increase the rent; all rent increases will be subject to an appeal procedure via the First-tier Tribunal.

There will also be a right for tenants to request to keep a pet in the property which landlords must consider, and cannot unreasonably refuse. Landlords can however require that the tenant obtains pet insurance to cover any damage to the property.

These changes to the private rental process are intended to provide greater security to tenants, allowing them to create a home without the worry of moving every six or twelve months as well as allowing them to bring challenges to poor practices and unfair rent increases without the fear of eviction.

While these proposed changes have been welcomed by some, others have expressed concerns with the changes such as The National Residential Landlords Association which has warned that ending fixed-term tenancies could have serious implications for the student rental market. The end to fixed term tenancies could allow students to end their tenancies at the beginning of the academic year, leaving landlords with an empty house that would be very difficult to fill until the next year.

There are likely to be other consequences too; whilst large residential landlords have the staff and ability to handle these changes smaller landlords will not and many may choose to sell thus reducing rental stock and increasing rents.

It’s important to note that the Bill is still being debated in the House of Commons, meaning that nothing is definite yet. We will keep you updated on how the Bill progresses through Parliament over the coming weeks and months.