The Renters (Reform) Bill

THE RENTERS (REFORM) BILL – WHAT DOES IT MEAN FOR PROPERTIES LEFT IN WILLS?

As most charities will have experienced, selling a property without a tenant in occupation is often preferable in order to receive the greatest possible return on the sale of the property and maximise the value of the estate. Under the present law, “no fault” evictions can be utilised where the charity is a beneficiary under a will, where it has been bequeathed a gift of a specific property or where it is the residuary beneficiary of an estate containing a property. This is all set to change with the new Renters (Reform) Bill.

ARE THE REFORMS A CAUSE FOR CONCERN FOR CHARITIES WHO WISH TO SELL THE PROPERTY?

The current “no fault” form of eviction will be entirely abolished, with the result that landlords will only be able to evict a tenant in particular circumstances set out in the new legislation. The changes are not, however, too bleak for the sale of property left in wills. New mandatory grounds for possession have been introduced which allow landlords to recover their properties when they need to, for example, for the purpose of redevelopment.

Of course, the question on all charities’ lips will be whether it will be easy to recover possession quickly ahead of selling the tenanted property. The charity will be able to gain possession provided that it intends to sell the property, and that repossession does not occur within the first six months of the tenancy.  This is key in relation to properties left as gifts in wills, as notice will still be able to be served on tenants so that the property can be sold vacant where desirable.

The reforms will also provide for charity landlords who need possession of the property where the property was let in the consequence of a tenant’s employment or the tenancy was granted for the purpose of providing the tenant with accommodation, and where substantial redevelopment is necessary.

The Bill is currently undergoing its second reading in the House of Commons and so Royal Assent is unlikely to be received before Spring 2024.

Anna Phillips and Marina Leigh Foot Anstey – June 2023