The Renters’ Rights Bill | What does it mean for Landlords?

Given the Bill will apply to both new and existing tenancies, we would advise landlords of residential properties to seek legal advice at an early stage to ensure you are compliant with the expected new rules once they are introduced.

Key points of the Renters’ Rights Bill:

• Abolishes fixed term tenancies:  All residential tenancies will become periodic assured tenancies with no end date.
• Abolishes “no fault” evictions:  Landlords will need to rely on the grounds of possession under the Housing Act 1988.  These grounds are expanded to include where the landlord or a member of their family wants to occupy the premises or where the landlord wants to sell.
• Enables easier termination of tenancies by tenants:  Tenants will be able to terminate their tenancies by giving two months’ notice.  Landlords’ notices will have to be for a minimum of four months and only after an initial 12 month tenancy period has elapsed.
• Limits increases in rent:  Landlords can only increase rent once a year, following service of a notice and giving tenants the ability to challenge any increases by applying to an independent tribunal.
• Requires landlords to register on a Private Rented Sector Database:  In particular, a landlord will usually be unable to terminate any tenancies unless it is registered.
• Introduces a Private Rented Sector Legal Ombudsman:  The new ombudsman will deal with landlord and tenant disputes.
• Gives tenants increased rights to request consent for pets, which landlords must consider and not refuse unreasonably: Landlords can require tenants to obtain or contribute towards pet insurance to cover any property damage.
• Applies the Decent Homes Standard (which currently only applies to social housing) to private rentals:
• Introduces Awaab’s Law to private rentals:  This will imply terms into all private tenancy agreements that certain requirements must be met.  The example provided by the government is timescales for landlords dealing with hazards such as damp and mould.  If landlords to not comply with these requirements, tenants can bring a claim against them for breach of the tenancy agreement.
• Prohibits discrimination against prospective tenants:  This will stop discrimination against those with children or in receipt of benefits when landlords or their agents are seeking to let their properties.
• Prohibits rent bidding wars:  Landlords or their agents will be prevented from asking for or accepting offers above the advertised rent.  This is significant as many renters will be painfully aware of how competitive the rental market currently is and how some agents require prospective tenants to make sealed bids.

Read the full guide to the Renters’ Rights Bill on the government website by clicking here.

Whilst the Section 21 “no fault” possessions route still exists, landlords who are seeking to gain possession of their property may wish to consider this option before the anticipated law.  For more information on Section 21 and Section 8 evictions, please see our article here: https://moore-tibbits.co.uk/news/evicting-tenants-navigating-landlord-issues-options-and-how-we-can-help/

Our experienced Lawyers can advise on all aspects of a landlord and tenant relationship including:

• Buying or selling buy-to-let properties
• Advising on dispute resolution

If you are a landlord looking for legal advice about how the Renter’s Rights Bill will affect you, call us today on 01926 491181.

Source:  Estates Gazette