blogs / 12 Dec 2023

understanding the impact of the english renters (reform) bill on UK relocation

The landscape of renting in England is on the brink of transformation. The proposed Renters (Reform) Bill*, introduced by the UK government, seeks to usher in a fairer system for both landlords and tenants. But what does this Bill entail, and how might it impact companies relocating employees into the country?

proposed reforms

  • The Renters (Reform) Bill will end fixed-term assured tenancies, and assured short-hold tenancies will move to periodic tenancies, which do not have an end date.
  • Instead, tenants will be able to stay in their rental property until they decide to end the tenancy by giving two months’ notice at any time, or the landlord can evidence a valid ground for ending the tenancy but won’t be able to use grounds for moving in, selling or redevelopment for the first six months of the tenancy.
  • Landlords must provide tenants with a valid reason for ending a tenancy; breach of contract, wanting to sell the property, moving back to the property, etc. They cannot use moving in, selling, or redeveloping the property as a reason to end a tenancy in the first six months.’
  • Tenants will be able to make a request in writing to have a pet in their rented property. A landlord must have a “reasonable” ground if they wish to refuse this request (e.g., their head lease does not permit animals).
  • While the Bill doesn’t restrict landlords from raising rents to market value during a tenancy, it does propose regulations around rent increases and a requirement to give two months’ notice of any increase. 

implications for relocating employees

The good news is that relocating employees moving into the English rental market will gain increased flexibility when ending leases whilst also being protected from unjustified evictions. The Bill will, however, prohibit break clauses, automatic renewal clauses, and capped rent increases being agreed upon at the start of a tenancy. So, advanced planning remains key when relocating impacted employees.

anticipating future impacts

There is a long-term risk that the Bill may lead to some landlords exiting the rental market, which may exacerbate existing supply and demand issues. Cartus will, of course, work closely with our on-the-ground supplier partners to monitor these trends.

next steps and implementation

The Bill will be rolled out in stages, with aspects of the Bill expected to become law next year. Existing tenancies are anticipated to transition to the new system at least 12 months after the first implementation date of the bill, which is still to be determined. Cartus will continue to review any updates to the Bill with clients as it progresses. For more information, read the UK Government’s Guide to the Renters (Reform) Bill.

Thank you to our supplier partner, Dwellworks, for providing this information.

*This is only applicable to tenancies falling within the Housing Act, currently known as Assured Short-hold Tenancies (ASTs). Common law tenancies will not be subject to the Renters (Reform) Bill. 

Sarah Briggs

about the author

Sarah is a Global Talent Mobility Director in EMEA and has 18 years of experience in the global mobility industry, predominantly in global operations, account management, mobile workforce solutions, and consulting services.