READ ON FOR KEY INFORMATION ON THE RENTERS’ RIGHTS BILL
The Renters' Rights Bill, a significant piece of legislation aimed at reforming England's private rental sector, is progressing through Parliament. This bill will impact both landlords and tenants, with the goal of creating a fairer rental market.
While it is not yet law and may undergo changes, it is important to understand the proposed measures. For most responsible landlords, the impact should be minimal.
KEY PROPOSED CHANGES
1. Section 21 The Bill will prohibit 'no-fault evictions' under Section 21 of the 1988 Housing Act. Landlords will need to provide valid reasons for reclaiming a property.
But rest assured, enhanced mandatory grounds for possession will be available for:
- Contract breaches
- Property sales
- Landlords (or certain family members) who may need to move into the property
2. Rent increases
Landlords will be permitted to raise rent once a year at market rate, providing stability for both parties.
3. Pet ownership
Tenants will have the right to request pet ownership. Landlords must consider these requests and cannot unreasonably refuse. However, landlords can request insurance to cover potential pet-related damage. More detail is needed on this aspect.
4. Rental property bidding
The bill will require landlords to publish the required rent for a property. Encouraging or accepting bids above this price will not be allowed so it will be important to ensure the property is marketed at the appropriate level.
5. Awaab's law extension
Applicable to the social housing sector from the autumn, there is the intention to extend Awaab’s Law to the private sector at some point in the future. No timeframe has been set for this to happen. The law looks likely to set out strict timelines for addressing concerns highlighted by tenants in connection with damp and mould.
6. Periodic tenancies
Fixed-term assured tenancies will be replaced by periodic tenancies. Tenants will have a 12-month protected period at the start of a tenancy. Landlords will need to provide four months' notice instead of two if their circumstances change.
7. Benefit discrimination
Blanket bans on benefit recipients or families with children will be outlawed. Landlords must consider all tenant applications based on their individual merits.
8. New ombudsman and property portal
A new Ombudsman will be created to resolve tenant-landlord disputes. An online Property Portal will serve as a hub for rental information, including a database of residential landlords and privately rented properties in England. Much more detail is required from the government and it is unlikely to form part of the initial phase of the legislation.
WHAT THIS MEANS FOR LANDLORDS
These changes aim to create a more transparent and fair rental market. By understanding and adapting to these new rules, landlords can ensure their properties remain compliant, attractive to tenants, and financially beneficial.For any queries or to discuss how these changes might affect your let and property portfolio, do not hesitate to contact us. We are here to help you navigate these changes and ensure your continued success in the rental market.
If you are looking for an up-to-date rental appraisal - complete our quick contact form and one of our lettings sales team will be in touch to book a time and date that is convenient to you.
Correct at time of publishing: 03.06.2025
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