Anar Mossobir, Operations Director at Victorstone, addresses the key inquiries from letting agents regarding the Renters (Reform) Bill.

Anar Mossobir: In terms of the ban on Section 21, there isn't much to discuss as it was already anticipated and has been implemented as promised.

What interests me more are the newly introduced grounds for certifying Section 8, as we previously had only vague notions about these grounds before the bill was released. Now, they have been elaborated upon to some extent.

Additionally, there were certain promises made that have not yet been fulfilled, such as the establishment of a landlord's register. Furthermore, certain aspects were initially proposed but did not make it into the final version of the bill.

Anar Mossobir: We are transitioning from Assured Shorthold Tenancies (ASTs) to assured (periodic) tenancies. While we have become accustomed to ASTs over time, assured tenancies were the norm back in the 1980s. However, there are notable differences between then and now.

The main distinction lies in the additional regulations that have been introduced since the implementation of the Housing Act in 1988. These regulations encompass aspects such as deposit registration and schemes, Electrical Installation Condition Reports, and HMO (House in Multiple Occupation) regulations. These regulations remain in effect, which is something that landlords didn't have to concern themselves with in the 90s.

Anar Mossobir: The specific date when the law passes through parliament is perhaps the least significant aspect. The Renters (Reform) Bill outlines two key dates in terms of its implementation, similar to what we witnessed with the tenant fee act.

Firstly, there is the application date, which will be determined by the Secretary of State or the parliament. This date signifies when the bill will officially come into effect. The exact date for this is yet to be determined.

Any new tenancies created after the application date will automatically be considered assured tenancies, and all the new regulations will apply to those tenancies.

Subsequently, there is the extended application date, which covers all tenancies that existed before the application date came into force, serving as a transitional provision.

Anar Mossobir: The bill itself does not explicitly mention any specific requirements for providing information to tenants during the transition. However, it is reasonable to anticipate some equivalent provisions. Given the significant effort and resources invested in producing "How to Rent" guides over the years, it is unlikely that those efforts will be disregarded.

It is likely that there will be adaptations to the existing guides, stating that landlords and letting agents are obligated to provide certain information in the future. While this is speculative to some extent, it aligns with the general principle in our legal system that individuals who will be impacted by new regulations should be informed about the forthcoming changes.

Anar Mossobir: Many agents are likely familiar with Section 8 and its grounds, such as grounds 8, 10, and 11. Currently, a two-week notice period is required for these grounds, but it will be extended to a four-week notice period, at the very least.

Ground 8 is undergoing some adjustments as well. Currently, it necessitates two months of rent arrears at both the time of serving the notice and the eventual possession hearing. The new version acknowledges the issue of late payments of universal credit and incorporates some modifications to address it.

The most significant change lies in Ground 1. This ground allows landlords to evict tenants if they wish to sell the property or accommodate a family member. Previously, agents often included Ground 1 notices in tenancy agreements without much consideration. However, the bill eliminates this practice.

I was taken aback by the casual wording used in the bill. It simply states that the landlord intends to sell the property, without requiring it to be on the market or display a "for sale" sign. This lack of structure could either stem from a deliberate decision or an oversight, but it seems naïve and susceptible to abuse. It is highly likely that this provision will be exploited.

Anar Mossobir: Letting agents are aware that currently, a Section 21 notice cannot be served within the first four months of an Assured Shorthold Tenancy (AST), which means that the notice cannot expire until the sixth month. The new legislation has expanded on this provision to some extent.

Both Ground 1 and Ground 1A of Section 8 allow for "no-fault" evictions. Essentially, they serve as Section 21 equivalents but under different names, in my opinion.

These grounds do not pertain to the tenant's behaviours but rather to the landlord's intentions. It is not the tenant's fault if a landlord decides to sell the property. Although there may be certain circumstances where the tenant's actions contribute, it is not necessarily the case in every situation.

Anar Mossobir: Section 8 of the Renters (Reform) Bill incorporates a mandatory ground that applies to tenants who have accumulated at least two months' rent arrears on three separate occasions within a span of three years.

This provision offers a means to address the issue of tenants consistently struggling with rent arrears over an extended period. However, it is worth noting that the three-year timeframe is quite significant, allowing for a considerable window of time.

This aspect came as a surprise to me, as a lot can happen within three years. Some individuals lead lives that are often chaotic and unpredictable. Therefore, it is possible that, through no fault of their own, tenants may find themselves falling into a cycle of two months' rent arrears on three occasions over the course of those three years. Once in such a situation, the ability to pursue eviction using the accelerated possession process becomes a decisive factor.

Anar Mossobir: According to the Renters (Reform) Bill, a tenant can only give consent to a rent increase after receiving a Section 13 notice. Furthermore, any consented increase must be lower than the amount stated in the Section 13 notice.

In practice, this means that in most cases, a section 13 notice will be served, and the tenant can, as they can currently, apply to the Property Tribunal to assess a fair rent. The Tribunal will then determine the appropriate rent for the property.

Over the past few years, the market rent has shown significant variation, predominantly increasing. With the possibility of more landlords exiting the market due to legislative changes like this, the reduction in supply may drive rents higher.

From a landlord's perspective, there is no reason for them to undervalue the property on a Section 13 notice. For example, if the market rent for a property is £1,500, a landlord could serve a Section 13 notice at £1,800. The worst-case scenario in this situation would be the Tribunal setting the rent at £1,500, which is the true value of the property.

I anticipate that many tenants may be unaware of their rights regarding this matter. Consequently, it is likely that numerous landlords will propose rent increases, and tenants may simply agree to them without fully understanding the situation. Tenant knowledge will play a crucial role in ensuring that the system is not abused or circumvented.

Anar Mossobir: There is no inherent issue with a tenant having a credit balance. With some careful phrasing and interpretation, it could still be managed within the current framework. For instance, certain agents collect two months' rent upfront, which is then allocated towards the final two months' rent. This approach could still be viable under the Renters (Reform) Bill, as tenants are aware that this amount represents two months' worth of rent.

When a tenant serves a notice to quit, the rent they have already paid can be attributed to the last two months' rent. This arrangement would also be acceptable, as there is no problem with a tenant having a credit balance, essentially meaning they have already paid their rent in advance.

Anar Mossobir: The specific details of the upcoming property portal remain uncertain, as the legislation does not provide a comprehensive outline. It seems that the government has been unable to fully articulate its vision for the portal within this particular piece of legislation. My scepticism or cynicism towards it arises from the suspicion that they may not want it to undergo the same level of scrutiny as the bill itself. This could be referred to as the Henry VIII power, using a technical term.

Regarding the available information, we know relatively little. There will be a database where landlords can register and receive a unique code. Similarly, each property uploaded to the portal will be assigned a code. These codes are likely to be displayed on property marketing websites.

However, I do question how this will be implemented in terms of GDPR compliance. Many landlords may not be comfortable with their personal details being publicly disclosed while their properties are being marketed.

Anar Mossobir: Student organisations generally advocate for equal treatment of students in comparison to other tenants. However, based on my analysis, the Renters (Reform) Bill does not appear to include any specific exceptions or provisions for students.

Currently, there is a specific ground for student accommodation under Section 8 of the law, but it only applies to educational establishments such as universities. Landlords renting to students would not be able to rely on this ground.

Under the current regulations, once the fixed term of a student tenancy ends, students have the freedom to vacate the property. However, considering the requirement for a two-month notice period, it is uncertain how many students, despite their best intentions, would remember to give such notice in advance.

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