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?
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.
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.
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.
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