The lettings industry is about to undergo what is likely the biggest change in 30 years, and as a result, many landlords have questions. Although the details of the Bill have not been finalized, we can provide an overview of the reforms and how they might impact current landlords.
On September 11, 2024, the Renters Rights Bill, which can be found through the following link https://www.gov.uk/government/publications/guide-to-the-renters-rights-bill/82ffc7fb-64b0-4af5-a72e-c24701a5f12a was introduced to the UK Parliament with its first reading in the House of Commons. The implementation date for these changes in law will depend on when Royal Assent is received. It is rumored to be in the summer of 2025.
We have prepared this important update to help you understand the main points outlined in the Bill. It’s important to note that the Bill is still in the process of going through many stages, including debates in the Commons and House of Lords. Therefore, there may be changes before it receives Royal Assent. Additionally, it’s important to mention that all of this applies only to Assured Shorthold Tenancies.
The proposed Bill includes several reforms to improve the private rented sector. Some of the key changes are: getting rid of unfair Section 21 “no-fault” evictions, ending assured shorthold tenancies, establishing a new register of private rented sector landlords and a property portal to enhance data and raise standards, safeguarding tenants from excessive rent hikes, providing stronger protections against evictions without proper notice, applying the Decent Homes Standard and Awaab’s Law to the private rented sector, making it illegal for landlords and agents to discriminate against prospective tenants receiving benefits or with children, banning landlords from soliciting rental bids, setting up an Ombudsman for the private rented sector to help resolve disputes, and enabling better enforcement through expanded use of Rent Repayment Orders (RROs).
Here’s a summary of the key points from the Renters’ Rights Bill:
– Section 21, the “no-fault” eviction notice, will no longer be available.
– All tenancies will become periodic, with each period lasting no more than a month.
– Tenants can give two months’ notice to end the tenancy at any time, including on day one.
– Landlords, on the other hand, will need to give tenants four months’ notice (currently 8 weeks) and only after an initial 12-month period.
– There will be restrictions on rent reviews and in-tenancy rent increases will be limited to once a year.
– Strict controls will be in place for offers and rent bidding when marketing a property.
– Discrimination against tenants with children or on benefits will be banned.
– Tenants will have the right to keep pets.
– The Decent Homes Standard and Awaab’s Law will be introduced to the private sector.
– New grounds will be established for when the landlord needs to sell or move into the property – but only after the initial 12 months and with four months’ notice.
– A new mandatory Ombudsman will be established for all landlords.
– There will be a mandatory private rental sector database of landlords.
Gaining possession under the Renters’ Rights Bill
Landlords must be very thorough in ensuring that they have followed all the necessary procedures and have solid evidence for any claims they make, to avoid their claims being refused or delayed. Under the Renters’ Rights Bill, landlords must use Section 8, which requires a valid reason for evicting tenants. Just non-payment of rent may not be enough reason. Anti-social behavior could be used as a justification, but landlords will need substantial evidence, and the burden of proof will be on the landlord. In cases of non-payment of rent, the new bill will require 13 weeks of arrears before they can give notice. of unpaid rent before landlords can give notice.
We would recommend a thorough check of your current tenancy agreement and regulatory documents to ensure they are all compliant with current legislation and ready for the change in law.
As always, the team at Eviction Support Group will be on hand to assist our landlords in gaining lawful possession of their property, and we will keep you updated with the latest news as it happens.
