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Does The Renters Reform Bill Affect Guaranteed Rent Leases?


Tenancy agreement

By this point, if you're a landlord or in the property industry, you should've heard of the Renters Reform Bill. (If not, click here to learn more). In this blog, we explore some of the regulations outlined in the bill and discuss how/if the changes may affect properties under a Guaranteed Rent scheme. (Please note, until the Bill is published we cannot confirm if the following statements are factual).


Abolish Section 21 and move to a tenancy structure in which all tenancies are periodic.

Abolishing section 21 notices means that contracts will continue to an indefinite period, unless the tenant serves notice or the landlord serves notice under certain section 8 grounds.

Elliot Leigh are awaiting confirmation but we believe that this will not apply to landlords who rent their properties to local authorities under an approved guaranteed rent scheme. This is because section 21 notices are not used to give notice to social housing tenants.


The Renters Reform Bill will end fixed-term tenancies and move to periodic tenancies, which do not have an end date. It will enable tenants to leave properties with 2 months notice at anytime without remaining liable for the rent.

Again Elliot Leigh are awaiting confirmation but we believe that this will not apply to fixed term lease agreements, as the Guaranteed Rent lease is between the landlord and Elliot Leigh.


Reform possession grounds, including mandatory grounds for possession where a landlord intends to sell or in cases of repeated rent arrears.

It will change the section 8 grounds in which a landlord can serve notice to a tenant to regain possession such as a landlord selling a property, tenant rents arrears, landlord moving in or ASB.

Elliot Leigh are awaiting advice on how this may effect a landlord with a lease agreement in place with an approved supplier such as Elliot Leigh/a local authority. However we believe there is a provision for the superior landlord to serve notice to terminate a lease agreement.


Create a new property Ombudsman to settle disputes and relieve pressure on the courts.

An ombudsman will be created which all landlords must join that will settle disputes.

We believe that this will apply to all landlords including those who rent their properties to a company under a fixed term lease.


Implement a digital Property Portal

All rented properties will need to be uploaded to a digital portals which will include uploading required compliance documents such as GSI’s, EICRS, EPC’S. etc. It will also enable local authority enforcement teams to check property to ensure they are compliant, track down rouge landlords quicker and upload issues that are effecting the property such as enforcement notices issued.

We believe that this will apply to all landlords including those who rent their properties to a company/local authority under a fixed term lease.


Statutory right to tenant to have pets

This will stop landlords unreasonably refusing tenants to have pets in the property.

We are awaiting advice on how this may affect a landlord with a lease agreement in place with an approved supplier such as Elliot Leigh.


Annual rent increases

This will enable landlords to increase the rent annually and if an agreement cannot be reached between the landlord and tenant it will adjudicated by a tribunal.

Elliot Leigh are awaiting advice on how this may affect a landlord with a lease agreement in place and more details on how tribunals will determine the rental level at the time of renewal.


Make it illegal for landlords and agents to have blanket bans on renting to tenants in receipt of benefits or with children

It will be illegal for landlords to refuse tenants who are on benefits or have children.

This will not affect Elliot leigh as our properties are generally rented to families with children.


Strengthen councils’ enforcement powers and introduce a new requirement for councils to report on enforcement activity

Elliot Leigh are awaiting further information to be released on this.


Apply the Decent Homes Standard to the private rented sector for the first time

This to make it a requirement for all properties to meet decent home standards which includes items such as a maximum age of kitchen or bathroom, or to provide a reasonable degree of thermal comfort. More information can be found on this link.

Most of the properties Elliot Leigh let under the scheme already meet this standard.

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