The Renters’ Rights Bill is fast approaching reality, marking the biggest revamp of the rental sector and property management in nearly 40 years. It will introduce key amendments to eviction rules, rent controls and tenant protections amongst other changes, and will impact more than 11 million private renters and 2.3 million landlords. But are you ready for its implications?
Getting closer
The Renters’ Rights Bill has moved at pace through parliament, having completed its passage through the House of Commons and now in committee stage in the House of Lords. It will then move to report stage and its third reading ahead of its final amendments and Royal Assent.
Understanding changes to tenancy structures and possession grounds
The end of assured shorthold tenancies with a move to rolling periodic tenancies is among the biggest of the changes being introduced. It aims to give more assurance to tenants, allowing them to stay in their homes longer and put down roots in their communities with more confidence.
Alongside this, possession terms will be revamped and the previous no-fault Section 21 notice will no longer be valid. This means that the eviction process will change significantly, with landlords having to use a Section 8 notice and cite specific grounds for possession. The government claims these will be fair for both landlords and tenants.
New rent controls will come into force
The government also aims to give tenants greater certainty over the levels of rent they will have to pay. This will kick in from the very start of a tenancy agreement. Currently landlords can accept or even solicit higher bids for their property when looking for tenants. As part of the changes within the Renters’ Rights Bill this will be forbidden.
Instead, once you’ve advertised your rent, that is the price you must accept, even if someone offers more. How often you can increase the rent while a tenant is in-situ will also change. Rent increases will only be allowed once a year and you will have to give two months’ notice. When rents are increased it can only be to market price.
This aims to stamp out excessive increases designed to force tenants out through a backdoor eviction. An independent tribunal will make a ruling if the increase is challenged.
Improved tenant protections
Tenants will also be better protected thanks to a number of other measures being introduced. These will include greater landlord transparency and accountability with the creation of a Private Rented Sector Database which you will need to register for and must maintain your details.
Any complaints about landlord behaviour will be dealt with by a new Private Rented Sector Ombudsman. Local authorities will have greater investigatory powers and enforcement rights with a range of civil penalties that can be imposed.
Discrimination against tenants with children, on benefits, or with pets, will stop and living conditions will improve with the introduction to the private rented sector of The Decent Homes Standard and Awaab’s law which will give clearer timescales on the resolution of hazards within homes.
These are just a few of the changes coming – being ready for them will be crucial.
Proctors is an independent network of individual estate agent businesses with branches in Beckenham, Bromley, Park Langley, Petts Wood, Shirley and West Wickham. We’ve been buying, selling and letting in these areas since 1946. Get in touch to find out how we can help you with your property requirements.