Significant Changes for Landlords and Tenants being Introduced by Renters (Reform) Bill

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.

Building Safety Act 2022

The Building Safety Act 2022 (the Act) came into force on 28 June 2022. It created new financial protections around the cost of remediation of historical safety defects for leaseholders of buildings at or above 11 metres or five storeys with historical safety defects.

While flat owners who benefit from this protection will welcome this unfortunately there are problems around the conveyancing process as it adjusts to the effect of the complex new rules which may adversely affect the sales process and the Government overlooked the effect of the legislation on flat owners extending their leases.

Law Commission recommendations to reform the Right to Manage

The Right to Manage (RTM) was introduced in 2002 giving flat owners the ability collectively TO take over the management functions in respect of their building without having to prove fault on the part of those responsible for management under their lease (usually their landlord) or paying a premium.